Use this free Alabama paycheck calculator to see your 2026 take-home pay from a salary or an hourly wage. It shows every deduction: federal income tax, Alabama income tax, the occupational tax in Birmingham, Gadsden and other cities, Social Security and Medicare, per paycheck and per year.
How Alabama Paycheck Taxes Work: 2026 Guide
Updated for 2026. Alabama taxes wages at 2%, 4% and 5%, and the 5% rate starts after just $3,000 of taxable income. Unusually, you can deduct the federal income tax you pay. From 2026 Alabama also lets you deduct up to $1,000 of overtime pay (HB 527). Birmingham and about two dozen other cities charge an occupational tax of 0.5% to 2% on wages earned there. Alabama has no state minimum wage, so the federal $7.25 applies. Every figure on this page comes from the Alabama Department of Revenue, the Alabama governor's office, the IRS or SSA.
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How your Alabama paycheck is calculated
Your employer starts with your gross pay, removes pre-tax benefits, withholds federal and Alabama income tax, any city occupational tax, Social Security and Medicare, takes after-tax deductions and pays you the rest.
- Gross paySalary, or hours × rate, plus overtime, bonuses and tips
- Pre-tax deductions401(k), health premiums, HSA, FSA, commuter benefits
- TaxesFederal income tax, Alabama income tax, occupational tax, Social Security and Medicare
- After-tax deductionsRoth 401(k), union dues, garnishments
- Net payThe take-home amount paid to you
What is taken out of an Alabama paycheck in 2026
| Deduction | 2026 rate | Applies to |
|---|---|---|
| Federal income tax | 10% to 37% by bracket | Taxable wages after the federal standard deduction |
| Alabama income tax | 2%, 4% and 5% | Wages minus deductions, exemptions and federal income tax |
| City occupational tax | 0.5% to 2% in about 25 cities | Gross wages earned in the city |
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45%, plus 0.9% over $200,000 | All wages |
| State disability or family leave | None | Alabama has no employee payroll contribution |
Alabama income tax brackets for 2026
Alabama's brackets are among the narrowest in the country, so most workers pay the 5% top rate on almost all of their taxable income:
| Rate | Single, head of family, married filing separately | Married filing jointly |
|---|---|---|
| 2% | First $500 | First $1,000 |
| 4% | $500 to $3,000 | $1,000 to $6,000 |
| 5% | Over $3,000 | Over $6,000 |
Before the rates apply, Alabama subtracts:
- Standard deduction: up to $3,000 for single filers, $8,500 for married couples filing jointly, $5,200 for heads of family and $4,250 for married filing separately. It shrinks as income rises from $26,000 and reaches its minimum at $35,500: $2,500, or $5,000 for joint filers (Alabama Department of Revenue chart).
- Personal exemption: $1,500 for single filers and married filing separately, $3,000 for joint filers and heads of family.
- Dependent exemption: $1,000 per dependent with income up to $50,000, $500 up to $100,000 and $300 above that (Form 40A).
- Federal income tax: the federal income tax you owe for the year, not the amount withheld. Only a few states allow this deduction.
A single filer earning $100,000 has $82,830 of Alabama taxable income after the $2,500 standard deduction, the $1,500 exemption and $13,170 of federal income tax. The tax is $4,101.50, about 4.1% of gross pay.
Traditional 401(k) contributions, health premiums, HSA and FSA contributions lower your Alabama tax too.
Alabama overtime deduction for 2026
Alabama exempted overtime pay from state income tax from January 2024 to June 30, 2025, and then let it expire. In April 2026 Governor Ivey signed HB 527, which gives a new deduction of up to $1,000 of qualified overtime pay for tax years 2026 to 2028 (Office of the Governor). The calculator applies it to the extra half-time part of your overtime, up to $1,000, which saves at most about $50 of Alabama tax. Alabama does not allow the federal tips deduction, so tips are fully taxed by the state.
City occupational taxes in Alabama
About 25 Alabama cities charge an occupational tax on gross wages earned inside the city, whether you live there or not. It is taken from your paycheck by your employer and, unlike income tax, applies before any deductions, including your 401(k). Rates reported by the Alabama League of Municipalities:
| Rate | Cities |
|---|---|
| 2% | Gadsden, Attalla, Glencoe, Rainbow City, Southside, Tuskegee |
| 1.5% | Opelika |
| 1% | Birmingham, Bessemer, Auburn, Fairfield, Leeds, Midfield, Brilliant, Guin, Haleyville, Hamilton, Shorter and others |
| 0.5% to 0.75% | Red Bay, Goodwater |
On a $75,000 salary, Birmingham's 1% costs $750 a year and Gadsden's 2% costs $1,500. Huntsville, Montgomery, Mobile and Tuscaloosa have no occupational tax. Check with your city, as rates can change.
Federal taxes on every Alabama paycheck
Federal income tax depends on your income, filing status and the choices on your W-4. For 2026 the brackets run from 10% to 37%, and the standard deduction is $16,100 for single filers, $32,200 for joint filers and $24,150 for heads of household (IRS).
- Social Security: 6.2% of wages up to $184,500 in 2026, a maximum of $11,439 (SSA).
- Medicare: 1.45% of all wages. Employers also withhold an extra 0.9% on wages above $200,000 in a year.
Take-home pay examples in Alabama for 2026
These results come from the calculator above for a single filer paid monthly, with no pre-tax deductions and no occupational tax:
| Salary | Federal tax | AL tax | Social Security + Medicare | Take-home per year | Per month | Total tax rate |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $2,069 | $3,825 | $40,286 | $3,357 | 19.4% |
| $60,000 | $5,020 | $2,509 | $4,590 | $47,881 | $3,990 | 20.2% |
| $75,000 | $7,670 | $3,127 | $5,738 | $58,466 | $4,872 | 22.0% |
| $100,000 | $13,170 | $4,102 | $7,650 | $75,079 | $6,257 | 24.9% |
| $150,000 | $24,734 | $6,023 | $11,475 | $107,768 | $8,981 | 28.2% |
| $200,000 | $36,734 | $7,923 | $14,339 | $141,004 | $11,750 | 29.5% |
A married couple filing jointly on $150,000 of combined pay takes home about $116,932 a year (22% in total taxes). With two children under 17, a couple earning $100,000 takes home about $84,802. An hourly worker on $25 an hour, 40 hours a week, earns $52,000 and takes home about $41,805 a year, or $3,484 a month. In Birmingham, a single filer on $75,000 pays $750 of occupational tax and takes home about $57,716.
Where a $75,000 Alabama salary goes in 2026
Single filer, no pre-tax deductions, no occupational tax, yearly amounts
Source: Digicalcy calculation using 2026 IRS, SSA and Alabama Department of Revenue rates.
Alabama take-home pay compared with nearby states
On a $100,000 salary, a single filer keeps about $75,079 in Alabama, $74,939 in Georgia and $79,180 in Tennessee and Florida, which have no income tax on wages. Alabama's narrow brackets push most income into the 5% rate, but the deduction for federal income tax brings the effective rate down to about 4.1%. Compare with our Georgia, Tennessee and Florida paycheck calculators.
Paychecks in Birmingham, Huntsville and Montgomery
Alabama income tax is the same everywhere in the state. The difference between cities is the occupational tax: if you work in Birmingham, 1% of your gross pay goes to the city, while workers in Huntsville, Montgomery, Mobile and Tuscaloosa pay none. Choose your work city under Personal Details in the calculator.
How bonuses, overtime and tips are taxed in Alabama
- Bonuses: Employers usually withhold a flat 22% federal tax and 5% Alabama tax on bonuses, plus Social Security, Medicare and any occupational tax. Your real tax is settled when you file. On a $100,000 salary you keep about $6,645 of a $10,000 bonus. See the bonus tax calculator.
- Overtime: Alabama has no state overtime law, so the federal rule applies: 1.5 times the regular rate for hours over 40 in a workweek. From 2026 up to $1,000 of overtime is deductible in Alabama, and the federal overtime deduction (up to $12,500, or $25,000 for joint filers) lowers your federal tax for 2025 to 2028. See the overtime calculator.
- Tips: Qualified tips of up to $25,000 are deductible from federal income tax for 2025 to 2028, but Alabama taxes all tips.
How pre-tax deductions lower your Alabama taxes
| Deduction | Federal income tax | Alabama income tax | Social Security and Medicare |
|---|---|---|---|
| Traditional 401(k), 403(b), 457 | Lowers | Lowers | No change |
| Health, dental and vision premiums | Lowers | Lowers | Lowers |
| HSA through payroll | Lowers | Lowers | Lowers |
| Health and dependent care FSA | Lowers | Lowers | Lowers |
A $10,000 401(k) contribution on a $100,000 Alabama salary
Single filer, 2026, yearly amounts
The contribution saves $2,590 in income tax, so take-home pay falls by only $7,410. The Alabama saving is smaller than 5% because a lower federal tax also means a smaller federal tax deduction.
Salary or hourly pay in Alabama
For hourly pay, multiply your rate by your weekly hours and by 52. A full-time year is 2,080 hours. Alabama has no state minimum wage, so the federal minimum of $7.25 an hour applies, or $15,080 a year full time (U.S. Department of Labor). Tipped workers can be paid $2.13 an hour in cash wages if tips bring them up to $7.25. A full-time worker on $7.25 an hour pays no federal income tax but about $489 of Alabama tax, and takes home about $13,437 a year.
Alabama has no state law on when a final paycheck is due, so employers usually pay it on the next regular payday.
Why your actual paycheck may differ from this estimate
- This calculator estimates your tax for the full year. Employers withhold using the IRS and Alabama withholding tables and your W-4 and Form A-4, so each check can be a little higher or lower.
- Alabama withholding estimates the federal tax deduction from your pay, so it may not match your final federal tax exactly.
- Occupational tax depends on where you physically work. Remote workers and people who work in several cities may pay less.
- Social Security stops once your wages pass $184,500, so late-year paychecks of high earners are larger.
How to increase your take-home pay in Alabama
- Check your federal withholding with the IRS Tax Withholding Estimator and update your W-4 and Alabama Form A-4 after a raise, a new job or a change in your family.
- Use pre-tax benefits such as a 401(k), HSA, FSA and commuter benefits. They lower both federal and Alabama income tax.
- If you work overtime, keep records so you can claim the federal overtime deduction and Alabama's $1,000 deduction when you file.
How this calculator works
The calculator estimates your full-year tax and divides it by your pay periods. It uses the 2026 federal brackets and standard deduction (Rev. Proc. 2025-32, including the 2025 tax law changes), Alabama's 2%, 4% and 5% rates, the Alabama standard deduction chart, personal and dependent exemptions, the federal income tax deduction, the 2026 overtime deduction, the city occupational tax you choose and the 2026 Social Security wage base. For joint filers, enter combined household wages. Results are estimates, not tax advice.
Last reviewed: October 28, 2026.
Alabama Paycheck Calculator FAQs
How much is $100,000 after taxes in Alabama?
A single filer earning $100,000 in Alabama takes home about $75,079 a year in 2026, or $6,257 a month. That is after $13,170 federal income tax, $4,102 Alabama income tax and $7,650 Social Security and Medicare, with no pre-tax deductions or occupational tax.
What percentage of my paycheck goes to taxes in Alabama?
For a single filer in 2026, total taxes take about 19.4% of a $50,000 salary, 22% of $75,000, 24.9% of $100,000 and 28.2% of $150,000. That includes federal and Alabama income tax, Social Security and Medicare. Working in Birmingham adds 1%.
What is the Alabama state income tax rate?
Alabama taxes income at 2% on the first $500, 4% up to $3,000 and 5% above that (double the bracket amounts for joint filers). Because you can deduct your federal income tax, the actual tax is usually about 4% of pay.
How much is $60,000 after taxes in Alabama?
A single filer earning $60,000 in Alabama takes home about $47,881 a year in 2026, or $3,990 a month, after $5,020 federal tax, $2,509 Alabama tax and $4,590 Social Security and Medicare.
Can you deduct federal income tax on your Alabama return?
Yes. Alabama is one of the few states that lets you deduct the federal income tax you owe for the year. On a $100,000 salary that is $13,170, which saves about $659 of Alabama tax.
What is the Birmingham occupational tax?
Birmingham charges 1% on gross wages earned in the city, whether you live there or not. It comes out of your paycheck and is not reduced by 401(k) contributions. About 25 Alabama cities have a similar tax, from 0.5% to 2%, including Gadsden at 2%.
Is an Alabama salary calculator the same as a paycheck calculator?
For Alabama take-home pay, yes. Both estimate how much of your pay you keep after taxes and deductions. This calculator works for salaried and hourly workers and shows results per paycheck and per year.
What is the minimum wage in Alabama in 2026?
Alabama has no state minimum wage, so the federal minimum of $7.25 an hour applies, or $15,080 a year for full-time work. Tipped employees can be paid $2.13 an hour in cash wages if tips make up the rest.
How is overtime paid in Alabama?
Alabama follows federal law: most hourly workers get 1.5 times their regular rate for hours over 40 in a workweek. From 2026 to 2028 up to $1,000 of overtime pay is deductible on your Alabama return, and the federal overtime deduction lowers your federal tax.
More paycheck and tax calculators
- Georgia Paycheck Calculator: take-home pay with a flat state income tax
- Tennessee Paycheck Calculator: take-home pay with no state income tax
- Florida Paycheck Calculator: take-home pay with no state income tax
- North Carolina Paycheck Calculator: take-home pay with a flat state income tax
- Overtime Calculator: time and a half pay
- Bonus Tax Calculator: how much of a bonus you keep
- Federal Tax Withholding Calculator: check your W-4