Alabama income tax and brackets 2026
Alabama taxes income at 3 rates in 2026, from 2% on the first $500 of a single filer's taxable income to 5% above $3,000. A single filer earning $75,000 in Alabama owes about $10,797 in federal and state income tax, an effective rate of 14.4%.
Income tax · 2026
See the brackets $10,797for the year
Effective rate 14.4% of income
Federal income tax$7,67071.0%
Alabama income tax$3,12729.0%
Taxable income
$58,900
Top federal rate
22%
Top Alabama rate
5%
Alabama tax brackets 2026
Alabama brackets · 2026
2% to 5%
3 brackets
Your top bracket
5%
Average rate
4.9%
Taxable income
$63,330
How your $3,127 adds up
2% on the first $500$100.3%
4% on the next $2,500$1003.2%
5% on the last $60,330$3,01796.5%
Alabama brackets, single
| Rate | Taxable income | Tax owed |
|---|---|---|
| 2% | $0 to $500 | 2% of taxable income |
| 4% | $500 to $3,000 | $10.00 + 4% over $500 |
| 5%You | Over $3,000 | $110.00 + 5% over $3,000 |
Alabama at a glance
- Income tax
- 2% to 5%
- Standard deduction
- $3,000
- Personal exemption
- $1,500
- State payroll taxes
- None
- City occupational tax
- 1% to 2%
- Sales tax
- 4%
- 2026 return due
- Apr 15, 2027
How we work it out
- 1IncomeYour income for the year, less pre-tax retirement savings.
- 2DeductionThe larger of the standard deduction and your itemized total.
- 3Federal bracketsEach rate from 10% to 37% taxes only the income inside it.
- 4AlabamaAlabama's own deduction and rates on the same income.
- 5Effective rateYour total tax divided by your income.
Alabama income tax questions
What are the Alabama tax brackets for 2026?
Alabama has 3 brackets for single filers, from 2% on the first $500 of taxable income to 5% on income over $3,000.
How much income tax do I pay on $75,000 in Alabama?
A single filer earning $75,000 owes about $7,670 in federal income tax and $3,127 in Alabama income tax for 2026, $10,797 in all. That is 14.4% of income.
Why is my average rate lower than my tax bracket?
Each rate taxes only the income inside its bracket. A single filer with $63,330 of Alabama taxable income is in the 5% bracket, but only the $60,330 above $3,000 pays 5%. The lower rates tax the rest, so the brackets come to $3,127, 4.9% on average.
What are the 2026 federal tax brackets?
Seven rates: 10%, 12%, 22%, 24%, 32%, 35% and 37%. The 37% rate starts above $640,600 for single filers and above $768,700 for married couples filing jointly.
Will Alabama's brackets change?
Rates and bracket widths are set in law and are not indexed; they have not changed in decades.
What is the 2026 standard deduction?
$16,100 for single filers, $32,200 for married couples filing jointly and $24,150 for heads of household. Alabama's own is $3,000 for single filers.
Sources
- IRS Revenue Procedure 2025-32: 2026 brackets and standard deduction
- Social Security Administration: 2026 contribution and benefit base
- IRS Notice 2025-67: 2026 retirement plan limits
- Alabama Department of Revenue
- ADOR Withholding Tax Tables and Instructions (January 2026): rates by status, standard deduction schedule, personal exemptions
- ADOR 2025 Form 40NR booklet: Standard Deduction Chart by filing status
- City of Auburn occupational license fee (1% of wages earned in the city)
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026
Nearby states
All statesYour taxes start with your books
BooksGPT sorts every transaction and hands your accountant reports that tie out.
Get started