Alabama Paycheck Calculator
In Alabama for 2026, a $75,000 salary takes home about $58,033 per year after federal income tax and FICA (Social Security and Medicare), and Alabama state income tax.
Alabama take-home pay calculator
Take-home now: $2,232.02 per 2 weeks
Use this free Alabama (AL) paycheck, payroll and income tax calculator to estimate your 2026 take-home pay after federal income tax, Social Security, Medicare, and Alabama's graduated state income tax (three brackets, 2% to 5%).
Use the calculator for your own salary or hourly rate.
Alabama's three-bracket ladder (2%–5%): what comes out of each 2026 check
Alabama taxes income on a graduated state schedule for 2026, applied after the state deduction for your filing status. This calculator applies that on top of federal withholding and Social Security / Medicare to estimate your Alabama take-home pay.
Alabama uses a graduated income tax with 3 brackets for 2026, with marginal rates ranging from 2% to a top rate of 5% (which applies to single-filer taxable income above $3,000). For 2026, Alabama's state standard deduction is $3,000 for single filers and $8,500 for married couples filing jointly. As a worked example, a single filer earning $60,000 pays about $2,810 in Alabama income tax (roughly 4.7% of gross) before federal tax and FICA.
What this estimate doesn't include: Alabama's standard deduction is income-based and PHASES DOWN as your Alabama AGI rises (from the maximums shown toward a lower floor); this estimate applies the maximum standard deduction, so for higher incomes the actual tax can be slightly HIGHER than shown. Alabama's personal exemption ($1,500 single / $3,000 married / and $1,000 per dependent) and the dependent exemption are not modeled, so estimates run slightly high on that account. Local income taxes are not included. Many Alabama municipalities/counties levy a separate LOCAL occupational (wage) tax (e.g. ~1% in Birmingham, Gadsden, Macon County) that is not included in this estimate. The federal income tax deduction Alabama allows, and the 2026 overtime-pay subtraction (up to $1,000), are not modeled. City, county or school-district income taxes where they apply, court-ordered deductions, union dues, and anything else your specific employer withholds are not in this figure; your pay stub is the authority on those.
Estimates only, not tax advice. The section "What this estimate doesn't include" above lists what's left out; see also our terms and the corrections log.
Alabama's three 2026 brackets, from 2% to 5% (single filers)
Alabama's graduated single-filer schedule for 2026, applied after the state deduction:
| Taxable income | Marginal rate |
|---|---|
| $0 – $500 | 2% |
| $500 – $3,000 | 4% |
| $3,000 and above | 5% |
Two Alabama payroll quirks worth knowing
- Alabama lets taxpayers deduct their full federal income tax liability before computing state tax (a 1965 constitutional provision) — one of the very few states still allowing a full federal income tax deduction, which meaningfully lowers effective state withholding.
- Workers in cities like Gadsden (2.0%), Birmingham (1.0%) and Bessemer (1.0%) have a municipal occupational tax withheld from every paycheck on top of the 2%–5% state income tax — a local deduction non-Alabamians rarely expect.
Your paycheck vs the $66,659 Alabama median
| Median household income (2024) | $66,659 |
| Take-home (single filer) | ≈$52,582 |
Local income taxes in Alabama
Several Alabama municipalities levy a local 'occupational tax' withheld from wages of anyone working in the city (resident or not): Birmingham 1.0%, Bessemer 1.0%, Gadsden 2.0%, plus others (e.g., Macon County). It applies to earned wages only — not dividends, rent or capital gains — and the employer withholds and remits it.
Is overtime and tips tax-free in Alabama? Federally yes; Alabama's state treatment is mixed
For tax years 2025 to 2028 there is a federal deduction for qualified overtime premium pay and tips (OBBBA caps & rules). FICA comes out either way.
Alabama state income tax: Alabama does not conform to the full federal overtime deduction, but HB 527 (signed April 16, 2026) allows a smaller capped state deduction of up to $1,000 of qualified overtime compensation for tax years 2026–2028. Tips got no state relief — the federal tips deduction reduces your federal tax only. (Alabama's own earlier full overtime exemption ended June 30, 2025.) (source: governor.alabama.gov)
- Overtime: 2025 — not deductible on your Alabama return (still state-taxed); 2026–2028 — a smaller capped Alabama break.
- Tips: 2025 — not deductible on your Alabama return (still state-taxed); 2026–2028 — not deductible on your Alabama return (still state-taxed).
Related: overtime by state · overtime calculator · tips by state · tips calculator.
Beyond the paycheck: Alabama's 4% sales tax and property tax
| Sales tax | 4% (≈9.46% with local) |
| Property tax | ≈0.37% — 0.37% effective rate on owner-occupied housing value — the lowest among these six states and among the lowest in the entire nation. |
Alabama stays on the federal $7.25 minimum wage in 2026
$7.25/hour (≈$15,080/year full-time). Alabama has NO state minimum wage law; FLSA-covered workers default to the federal $7.25/hr.
Alabama paycheck FAQ
Does Alabama have a state income tax in 2026?
Yes — three graduated brackets from 2% to 5% in 2026, on top of federal tax and FICA.
Do cities or counties in Alabama take a local income tax out of paychecks?
Several Alabama municipalities levy a local 'occupational tax' withheld from wages of anyone working in the city (resident or not): Birmingham 1.0%, Bessemer 1.0%, Gadsden 2.0%, plus others (e.g., Macon County). It applies to earned wages only — not dividends, rent or capital gains — and the employer withholds and remits it.
Compare a paycheck next door: Georgia, Tennessee & Mississippi
| State | State income tax (2026) | Take-home on $75,000 (single) |
|---|---|---|
| Alabama | three brackets, 2%–5% | $58,033 |
| Georgia | flat 4.99% | $58,599 |
| Tennessee | no state income tax | $61,593 |
| Mississippi | two brackets, 0%–4% | $59,325 |
| Florida | no state income tax | $61,593 |
Those are the states next door. To see where Alabama lands against all of them at once, our take-home pay by state study runs an identical salary at two levels, $75,000 and $100,000, through the 2026 rules of every state and DC, except Arizona, California, District of Columbia, Idaho, Maryland and Vermont, still on their 2025 tables, ranked from the most take-home pay to the least.
All state paycheck calculators →
Data compiled and maintained by Edmond Daher · Updated 2026-08-02