Alabama Paycheck Calculator
Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Results
Income Before Tax
Take Home Pay
Total Tax
Average Tax Rate
$ = US Dollar
Income Before Tax
Federal Income Tax
State Income Tax
State Tax Credits
Social Security
Medicare
State Disability Insurance
State Paid Family and Medical Leave (PFML)
State Unemployment Insurance
State Worker Comp
State Transit Tax
Mental Health Services Tax
Local Income Tax
Total Tax
Take Home Pay
Federal Deductions
State Deductions
Average Tax Rate
Table of Contents
Summary
Enter your employment income into the paycheck calculator above to estimate how taxes in Alabama, USA may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
This paycheck calculator also works as an income tax calculator for Alabama, as it shows you how much income tax you have to pay based on your salary and personal details.
To learn more about Alabama, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Frequently Asked Questions
What is the income tax rate in Alabama?
The state income tax rate in Alabama is progressive and ranges from 2% to 5% while federal income tax rates range from 10% to 37% depending on your income. This paycheck calculator can help estimate your take home pay and your average income tax rate.
How many income tax brackets are there in Alabama?
The state income tax system in Alabama has three different tax brackets. For more details, check out our detail section.
How Your Alabama Paycheck Works
Alabama is a state with a lot to offer, from its scenic landscapes to historic landmarks and many things in between. Whether you are a native Alabamian or are a newcomer to this southern state, you might have some questions about how your income is taxed and how much money you get to keep from your earnings.
Your Alabama paycheck works by subtracting various taxes and withholdings from your gross income or salary.
One of the main factors that affect your paycheck is state income tax. Alabama has a progressive income tax system, which means that higher earners pay higher tax rates than lower earners.
There are three different tax brackets in Alabama: 2%, 4%, and 5%. The income thresholds for these brackets depend on your filing status. If you're married, they depend on whether you file jointly or separately with your spouse.
You can adjust your state withholding by filling out a Form A-4 and giving it to your employer. This form is similar to the federal Form W-4, which allows you to specify your personal situation.
Another factor that affects your paycheck is federal income tax. This is a tax levied by the federal government on your income and goes to the IRS. The federal tax rates vary depending on your filing status and income level, just like with state tax. Your employer will use the details in your W-4 to calculate how much federal tax to withhold from your paycheck.
Besides state and federal income taxes, you may also have to pay local income taxes in some cities and counties in Alabama. These are taxes imposed by local governments in the form of an occupational tax. These vary by location and can range from 0.5% to 2%. For example, if you work in Birmingham, you will have to pay an additional 1% city income tax. You can check with your local government or employer to find out if you are subject to any local taxes and how they are calculated.
In addition to income taxes, there are other taxes that may come out of your paycheck, such as Social Security and Medicare taxes. Together, these are also known as FICA taxes, and they are mandatory for almost all employees.
The Social Security tax rate is 6.2% of your gross income up to a certain limit ($147,000 in 2022), and the Medicare tax rate is 1.45% of your gross income with no limit. If you earn more than a set ceiling, you will also have to pay an additional 0.9% Medicare surtax. Aside from the surtax, your employer will match your amounts and also contribute.
You may also have some voluntary items taken from your paycheck, such as contributions to a retirement plan (e.g., 401(k)), health insurance premiums, life insurance premiums, or other benefits offered by your employer.
These may reduce your taxable income and lower your tax bill if they can be done pre-tax. Otherwise, if they are processed after taxes are calculated, they are known as post-tax items.
State Income Tax Brackets
For 2022 tax year
| Taxable Income (USD) | Tax Rate |
|---|---|
| First 500 | 2% |
| From 500 to 3,000 | 4% |
| From 3,000 onwards | 5% |
For 2022 tax year
| Taxable Income (USD) | Tax Rate |
|---|---|
| First 1,000 | 2% |
| From 1,000 to 6,000 | 4% |
| From 6,000 onwards | 5% |
Those that are married filing jointly see the same tax rate range, but have their tax bracket amounts doubled.
Both a state standard deduction and a personal exemption exist and vary depending on your filing status and income.
Additionally, Alabama is one of the few states that allow federal income tax to be deducted as well.
More From Investomatica:
For sales tax, please visit our Alabama Sales Tax Rates and Calculator page.
Calculate Your Paycheck in Other States and US Regions
Calculate Your Paycheck in Other Parts of North America
Disclaimer
- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- Tax situations vary widely and calculations can get very complex. This paycheck calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our paycheck calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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