Alabama State Income Tax Calculator (2026)

Estimate 2026 Alabama state income tax with the sliding standard deduction, federal tax deduction, personal and dependent exemptions and 2%–5% brackets.

Filing status

Alabama adjusted gross income ($ per year)Income Alabama taxes, after adjustments such as IRA contributions. Leave out Social Security, military retirement and qualifying defined-benefit pensions.

DependentsPeople (other than you and your spouse) you gave more than half their support.

Deduction Standard deduction Itemize

Itemized deductions (Alabama Schedule A) ($)Used only when you choose Itemize.

Federal income tax deduction

Federal income tax liability ($)Form 1040 tax (line 22) plus net investment income tax, minus refundable credits (EIC, additional child tax credit…). Used when you choose to enter it.

Children under 17 (for the federal estimate)Each gets the $2,200 federal child tax credit in the estimate.

Alabama tax withheld or paid (optional) ($)

Alabama taxes income at 2%, 4% and 5%, but the 5% rate starts at only $3,000 of taxable income ($6,000 for joint filers), so most of a typical income is taxed at the top rate. Unusually, residents subtract the federal income tax they owe before the state rate applies. This calculator follows the Form 40 order with the figures in force for 2026.

How to use this tool

Choose your filing status and enter your Alabama adjusted gross income.
Enter the number of dependents you support (not you or your spouse).
Keep the standard deduction or switch to itemized and enter your Schedule A total.
Let the tool estimate your federal income tax, or choose to enter the figure from your federal return.
Optionally add Alabama tax already withheld to see a refund or balance due.

Formula

Taxable income = AGI − deduction − federal income tax − personal exemption − dependent exemptions

Tax for single, head of family and married filing separately = 2% of the first $500 + 4% of the next $2,500 + 5% above $3,000. Married filing jointly: 2% of the first $1,000, 4% of the next $5,000, 5% above $6,000.

The standard deduction shrinks as AGI rises: single $3,000 up to $25,999, falling $25 per $500 to $2,500 from $35,500; joint $8,500 to $5,000; head of family $5,200 to $2,500; separate $4,250 to $2,500. Personal exemption: $1,500 single or separate, $3,000 joint or head of family. Each dependent: $1,000 if AGI is $50,000 or less, $500 up to $100,000, $300 above.

Example

A single filer with $60,000 AGI and no dependents. Federal estimate: $60,000 − $16,100 standard deduction = $43,900 taxable, so federal tax is $5,020. Alabama: $60,000 − $2,500 standard deduction − $5,020 federal tax − $1,500 personal exemption = $50,980 taxable. Tax = $10 + $100 + 5% × $47,980 = $2,509, about 4.18% of AGI.

Frequently asked questions

Does Alabama really let me deduct federal income tax?

Yes. Residents deduct their federal income tax liability on Form 40, line 12 — the Form 1040 tax plus net investment income tax, minus refundable credits such as the EIC and additional child tax credit. For someone in the 5% bracket, each $100 of federal tax lowers Alabama tax by about $5.

Is Social Security taxed in Alabama?

No. Federal Social Security benefits, military retirement and qualifying defined-benefit pensions are on the Department of Revenue list of income you do not report, so leave them out of the AGI you enter.

Does this include city occupational tax?

No. A few cities, such as Birmingham, levy their own tax on wages earned there. It is withheld separately and is not part of the state return.

Sources

This tool gives an estimate for general information only. It is not financial, tax, legal or medical advice — check with a qualified professional before you rely on the result.

Last updated: 2026