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Alabama Income Tax Calculator

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Overview of Alabama Taxes

Alabama is a state with relatively low income tax and effective property tax rates. The state sales tax of 4% is also low, but local rates can more than double what you pay in sales tax in some cities.

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Household Income
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Location
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Filing Status
401(k) Contribution
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IRA Contribution
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Itemized Deductions
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Number of State Personal Exemptions
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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2023 
Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes
Retirement Contributions
Take-Home Pay

* These are the taxes owed for the 2023 - 2024 filing season.

Your 2023 Federal Income Tax Comparison

  • Your marginal federal income tax rate
  • Your effective federal income tax rate
  • Your federal income taxes

Total Estimated 2023 Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.

    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes.
    ...read more
  • Last Updated: January 1, 2024

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.

    ...read more
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Taxes in Alabama

Alabama State Tax Quick Facts

  • State income tax: 2% - 5%
  • Local income tax: 0% - 2%
  • Sales tax: 0% - 12.5%
  • Property tax: 0.41% median effective rate
  • Gas tax: 29 cents per gallon of regular gasoline, 30 cents per gallon of diesel

Taxes in the Yellowhammer State are by and large lower than in most other states. Alabama has the second lowest average effective property tax rate in the country after Hawaii, and its income tax rates range from just 2% to 5%, lower than most other states that have an income tax. However, rates could be higher depending on where in Alabama you live or work, as local governments can also collect occupational taxes ranging from 0% to 2%.

The statewide sales tax of 4% ranks as one of the lowest in the country, but local sales taxes bring the average combined sales tax in the state up to 9.10%, which is the fourth-highest nationwide.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Alabama Income Taxes

The state income tax in Alabama is similar to the federal income tax, with increasing rates based on income brackets. However, while the federal income tax has seven brackets, Alabama has just three, with the top rate of 5% applying to all taxable income over $3,000.

Income Tax Brackets

Single Filers
Alabama Taxable IncomeRate
$0 - $5002.00%
$500 - $3,0004.00%
$3,000+5.00%
Married, Filing Jointly
Alabama Taxable IncomeRate
$0 - $1,0002.00%
$1,000 - $6,0004.00%
$6,000+5.00%
Married, Filing Separately
Alabama Taxable IncomeRate
$0 - $5002.00%
$500 - $3,0004.00%
$3,000+5.00%
Head of Household
Alabama Taxable IncomeRate
$0 - $5002.00%
$500 - $3,0004.00%
$3,000+5.00%

These rates do not apply to gross income, but to Alabama taxable income, which is gross income minus any applicable deductions and exemptions. Taxpayers who itemize deductions federally may also do so on their Alabama return, but they can claim the Alabama standard deduction instead (and vice versa).

The Alabama standard deduction varies depending on filing status and income. At a certain point, the deduction descends steadily for increasing income levels, until it reaches its minimum amount at either $15,000 or $30,000, as is reflected in the table below.

Standard Deduction Tables

Single Filers
Alabama AGIStandard Deduction
$0 -$25,999$3,000
$25,999 -$26,499$2,975
$26,499 -$26,999$2,950
$26,999 -$27,499$2,925
$27,499 -$27,999$2,900
$27,999 -$28,499$2,875
$28,499 -$28,999$2,850
$28,999 -$29,499$2,825
$29,499 -$29,999$2,800
$29,999 -$30,499$2,775
$30,499 -$30,999$2,750
$30,999 -$31,499$2,725
$31,499 -$31,999$2,700
$31,999 -$32,499$2,675
$32,499 -$32,999$2,650
$32,999 -$33,499$2,625
$33,499 -$33,999$2,600
$33,999 -$34,499$2,575
$34,499 -$34,999$2,550
$34,999 -$35,499$2,525
$35,499+$2,500
Married, Filing Jointly
Alabama AGIStandard Deduction
$0 - $25,999$3,000
$25,999 - $26,499$2,975
$26,499 - $26,999$2,950
$26,999 - $27,499$2,925
$27,499 - $27,999$2,900
$27,999 - $28,499$2,875
$28,499 - $28,999$2,850
$28,999 - $29,499$2,825
$29,499 - $29,999$2,800
$29,999 - $30,499$2,775
$30,499 - $30,999$2,750
$30,999 - $31,499$2,725
$31,499 - $31,999$2,700
$31,999 - $32,499$2,675
$32,499 - $32,999$2,650
$32,999 - $33,499$2,625
$33,499 - $33,999$2,600
$33,999 - $34,499$2,575
$34,499 - $34,999$2,550
$34,999 - $35,499$2,525
$35,499+$2,500
Married, Filing Separately
Alabama AGIStandard Deduction
$ 0 – $12,999$4,250
$12,999 – $13,249$4,162
$13,249 – $13,499$4,074
$13,499 – $13,749$3,986
$13,749 – $13,999$3,898
$13,999 – $14,249$3,810
$14,249 – $14,499$3,722
$14,499 – $14,749$3,634
$14,749 – $14,999$3,546
$14,999 – $15,249$3,458
$15,249 – $15,499$3,370
$15,499 – $15,749$3,282
$15,749 – $15,999$3,194
$15,999 – $16,249$3,106
$16,249 – $16,499$3,018
$16,499 – $16,749$2,930
$16,749 – $16,999$2,842
$16,999 – $17,249$2,754
$17,249 – $17,499$2,666
$17,499 – $17,749$2,578
$17,749 and above$2,500
Head of Household
Alabama AGIStandard Deduction
$0 -$25,999$5,200
$25,999 -$26,499$5,065
$26,499 -$26,999$4,930
$26,999 -$27,499$4,795
$27,499 -$27,999$4,660
$27,999 -$28,499$4,525
$28,499 -$28,999$4,390
$28,999 -$29,499$4,255
$29,499 -$29,999$4,120
$29,999 -$30,499$3,985
$30,499 -$30,999$3,850
$30,999 -$31,499$3,715
$31,499 -$31,999$3,580
$31,999 -$32,499$3,445
$32,499 -$32,999$3,310
$32,999 -$33,499$3,175
$33,499 -$33,999$3,040
$33,999 -$34,499$2,905
$34,499 -$34,999$2,770
$34,999 -$35,499$2,635
$35,499+$2,500

Alabamans in certain cities must also pay municipal occupational taxes. Unlike Alabama state income taxes, municipal occupational taxes apply to gross wages (as opposed to taxable income), and are typically withheld from workers’ paychecks. The table below shows the rates for the cities in Alabama with an occupational tax.

Occupational Tax Rates

CityOccupational Tax Rate
Attalla2.00%
Auburn1.00%
Bear Creek1.00%
Bessemer1.00%
Birmingham1.00%
Brilliant1.00%
Fairfield1.00%
Gadsden2.00%
Glencoe2.00%
Goodwater0.75%
Guin1.00%
Hacklebug1.00%
Haleyville1.00%
Hamilton1.00%
Leeds1.00%
Lynn1.00%
Midfield1.00%
Mosses1.00%
Opelika1.50%
Rainbow City2.00%
Red Bay0.50%
Shorter1.00%
Southside2.00%
Sulligent1.00%
Tuskegee2.00%

Alabama Sales Tax

Most goods sold in Alabama will be subject to both state and local sales taxes. The state sales tax rate is 4%. Additional taxes are then levied at the local level. The table below shows the total rates for all of Alabama's counties.

Sales Tax Rates(Updated January 2024)

CountyMaximum Sales Tax Rate in County
Autauga County10%
Baldwin County11%
Barbour County9.5%
Bibb County10%
Blount County12%
Bullock County10%
Butler County10%
Calhoun County10%
Chambers County10%
Cherokee County10%
Chilton County11%
Choctaw County10%
Clarke County10%
Clay County9.5%
Cleburne County9%
Coffee County10%
Colbert County10%
Conecuh County10%
Coosa County10%
Covington County10%
Crenshaw County10%
Cullman County10%
Dale County10%
Dallas County10%
Dekalb County11.5%
Elmore County10.5%
Escambia County11%
Etowah County12%
Fayette County9.5%
Franklin County10%
Geneva County9.5%
Greene County10%
Hale County10%
Henry County10%
Houston County10%
Jackson County9%
Jefferson County10%
Lamar County9.5%
Lauderdale County9.5%
Lawrence County10%
Lee County10%
Limestone County10.5%
Lowndes County10.5%
Macon County11.5%
Madison County10.5%
Marengo County10%
Marion County11%
Marshall County12.5%
Mobile County10%
Monroe County10%
Montgomery County10%
Morgan County9%
Perry County10%
Pickens County10%
Pike County10%
Randolph County10%
Russell County9.75%
Shelby County12%
St Clair County10%
Sumter County11%
Talladega County10%
Tallapoosa County10%
Tuscaloosa County10%
Walker County10%
Washington County10%
Wilcox County11%
Winston County10%

Among the types of products that are subject to the rates above are clothing, furniture, electronics and automobiles. Food is also taxable in Alabama at the full sales tax rate since there aren't any food tax rebates or relief.

Alabama Property Tax

Depending on how you measure it, Alabama's property taxes are either the lowest or second lowest in the nation. To begin with, Alabama homeowners pay an median property tax bill of just $646every year, the lowest annual median of any state. When measuring effective property tax rates (payments as a percentage of home value), Alabama ranks second lowest with a rate of 41%. Hawaii, where home values are more than quadruple those in Alabama, ranks first.

If such low property taxes make you want to call Alabama home sweet home, check out our mortgage guide for the most important information about getting a mortgage in Alabama. Also check it out if you’re looking to refinance a property in the Yellowhammer State.

Alabama Capital Gains Tax

Capital gains are taxed as normal income in Alabama, and thus they are subject to the top income tax rate of 5%. City occupational taxes do not apply to capital gains, however, since they are not wages.

Alabama Tobacco Tax

Cigarettes are taxed at a rate of 68 cents per pack in Alabama.

Photo credit: flickr
  • Alabama derives its nickname, “The Yellowhammer State,” from the state bird, the northern flicker, a type of woodpecker often referred to as a yellowhammer.
  • The University of Alabama and Auburn University both rank in the top 20 nationally for average attendance at their home college football games, with over 100,000 and 80,000, respectively, in average attendance.