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Tax year 2026 · Updated September 3, 2026

Alabama Paycheck Calculator

Alabama pairs low 2% to 5% brackets with a deduction for the federal income tax you pay, which keeps effective rates modest; Birmingham and a few other cities add an occupational tax on wages.

Alabama paycheck calculator

Estimates for tax year 2026. Results update as you type.

Pay type
Birmingham and about 20 other Alabama cities levy an occupational tax of 0.5% to 2% on wages.
W-4 details, retirement and benefits
$2,200 per qualifying child under 17, $500 per other dependent.
Percent of gross pay, pre-tax (traditional).
Section 125 items also reduce Social Security and Medicare wages.
Roth 401(k), union dues, garnishments.
Estimated take-home pay every two weeks$1,832.88$47,655.00 per year · $3,971.25 per month
Effective tax rate
20.6%
Federal marginal rate
12%
Alabama marginal rate
5.00%
Take-homeFederalFICAState and localDeductions
LinePer paycheckPer year
Gross pay$2,307.69$60,000.00
Pre-tax retirement$0.00$0.00
Health, HSA, FSA (pre-tax)$0.00$0.00
Federal income tax$193.08$5,020.00
Social Security (6.2%)$143.08$3,720.00
Medicare (1.45%)$33.46$870.00
Alabama income tax$105.19$2,735.00
Local income tax$0.00$0.00
After-tax deductions$0.00$0.00
Take-home pay$1,832.88$47,655.00

Federal withholding follows IRS Publication 15-T for a 2020-or-later W-4. Social Security applies to the first $184,500 of wages in 2026. Alabama tax uses the 2026 rate schedule (top rate 5%).

How Alabama paycheck taxes work in 2026

Alabama uses a graduated schedule with 3 brackets from 2% to 5%. The top rate applies to taxable income above $3,000 for single filers and $6,000 for joint filers. Only the income inside each bracket is taxed at that bracket's rate, which is why the effective rate on your whole paycheck is lower than the top rate.

Before the rates apply, Alabama allows a standard deduction of $3,000 for single filers and $8,500 for joint filers and personal exemptions of $1,500 per filer and $1,000 per dependent. The calculator applies these automatically based on your filing status and the dependents you enter.

Alabama 2026 income tax brackets
RateSingle filersMarried filing jointly
2%$0 – $500$0 – $1,000
4%$500 – $3,000$1,000 – $6,000
5%over $3,000over $6,000

Standard deduction: $3,000 single, $8,500 joint. Personal exemption: $1,500 per filer, $1,000 per dependent. Married filing separately and head of household use the single schedule in this estimate.

Local income taxes in Alabama

Birmingham and about 20 other Alabama cities levy an occupational tax of 0.5% to 2% on wages.

Good to know. Alabama allows a deduction for federal income tax paid and phases down its standard deduction with income; this estimate uses the maximum standard deduction and no federal tax deduction.

Worked example: $60,000 salary in Alabama

A single filer earning $60,000 a year, paid every two weeks, with a standard W-4 and no pre-tax deductions, sees this on each paycheck in 2026. These numbers are produced by the same engine as the calculator above, so they never drift from the tool.

Example bi-weekly paycheck breakdown in Alabama
Gross pay$2,307.69
Federal income tax$193.08
Social Security$143.08
Medicare$33.46
Alabama income tax$105.19
Take-home pay per paycheck$1,832.88
Take-home pay per year$47,655.00
Effective tax rate20.6%

Federal taxes on every paycheck in 2026

Federal income tax withholding follows IRS Publication 15-T: your pay is annualised, adjusted for the entries on your Form W-4, reduced by the standard deduction built into the withholding tables ($16,100 single, $32,200 joint, $24,150 head of household), and run through the 2026 rate schedule below. Social Security is 6.2% of wages up to $184,500; Medicare is 1.45% of all wages plus 0.9% on wages above $200,000.

2026 federal income tax brackets by filing status
RateSingleMarried filing jointlyHead of household
10%$0 – $12,400$0 – $24,800$0 – $17,700
12%$12,400 – $50,400$24,800 – $100,800$17,700 – $67,450
22%$50,400 – $105,700$100,800 – $211,400$67,450 – $105,700
24%$105,700 – $201,775$211,400 – $403,550$105,700 – $201,775
32%$201,775 – $256,225$403,550 – $512,450$201,775 – $256,200
35%$256,225 – $640,600$512,450 – $768,700$256,200 – $640,600
37%over $640,600over $768,700over $640,600

Frequently asked questions

Does Alabama have state income tax?

Yes. Alabama uses a graduated income tax with rates from 2% to 5% for 2026, withheld from each paycheck by your employer.

How much is taken out of a $1,000 paycheck in Alabama?

For a single filer paid $1,000 a week with no pre-tax deductions, about $199.48 is withheld in 2026: $78.08 federal income tax, $62.00 Social Security, $14.50 Medicare, $44.90 Alabama income tax, leaving take-home pay of about $800.52.

What is the Alabama income tax rate for 2026?

Alabama rates range from 2% to 5% in 2026, depending on taxable income and filing status. The full bracket table is above.

Does Alabama have local income taxes?

Birmingham and about 20 other Alabama cities levy an occupational tax of 0.5% to 2% on wages. Enter the rate in the calculator's "Local occupational tax" field to include it.

Are 401(k) contributions taxed in Alabama?

No. Like the federal government, Alabama excludes traditional 401(k), 403(b) and similar pre-tax retirement contributions from taxable wages. Social Security and Medicare still apply to those contributions.

How do I calculate my hourly take-home pay in Alabama?

Switch the calculator to Hourly, enter your rate, hours per week and any overtime, and choose how often you are paid. The Alabama hourly paycheck calculator opens with those settings and shows the same federal, FICA and state breakdown.

Why is my actual paycheck different from this estimate?

Employers use IRS Publication 15-T and the state's own withholding tables, and your year-to-date wages, benefits, bonuses, garnishments and any local taxes change the numbers. This estimate annualises your regular pay; it will be closest for a steady salary with a standard W-4.

Paycheck calculators for other states

Sources and updates

Figures are for tax year 2026 and were checked against the sources below on . Rates change every January; we review every data file at the start of each year and whenever a state announces a mid-year change.

This calculator gives estimates for information only and is not tax, legal or financial advice. Your employer's payroll system, local taxes, benefits and year-to-date wages can change the exact amounts on your pay stub. See how we calculate.