Alabama Paycheck Calculator 2026

How Alabama Taxes Affect Your Paycheck

Alabama uses a three-bracket progressive state income tax system: 2%, 4%, and 5%.

Many workers hit the top 5% marginal rate at relatively low taxable income.

Some Alabama cities also levy occupational taxes that can reduce net pay further.

Alabama Income Tax Brackets (2026)

Other Alabama Payroll Taxes

Alabama does not have a statewide employee SDI payroll tax. State unemployment taxes are generally employer-paid; some cities may have occupational taxes.

Federal Taxes That Apply in Alabama

In addition to Alabama state taxes, your Alabama paycheck is subject to federal taxes:

• Federal Income Tax: 10% to 37% based on your income and filing status
• Social Security Tax: 6.2% on income up to $176,100 (2026)
• Medicare Tax: 1.45% on all income, plus 0.9% additional Medicare tax on income over $200,000