Alabama Paycheck Calculator
Estimate your take-home pay in Alabama based on 2024 tax brackets.
Estimated Annual Net Pay: -
Use this Alabama Paycheck Calculator calculator for quick, clear estimates. Try a tiny example to see the impact of each input.
Q: How is Alabama state income tax calculated?
Alabama uses a progressive income tax system with rates of 2%, 4%, and 5%. The specific rate depends on your taxable income and filing status. For single filers, the 2% rate applies to the first $500 of taxable income, 4% for income between $500 and $3,000, and 5% for income over $3,000. For married individuals filing jointly, these brackets are generally doubled. Alabama also allows taxpayers to deduct the full amount of federal income tax paid when calculating their state taxable income.
What taxes are withheld from an Alabama paycheck?
An Alabama paycheck typically has federal income tax, FICA taxes (Social Security and Medicare), and Alabama state income tax withheld. Additionally, some cities and counties in Alabama may impose local occupational taxes, which would also be withheld from your paycheck.
Are there local income taxes in Alabama?
Yes, certain cities and counties in Alabama levy local income taxes, often called occupational taxes, which generally range from 0.5% to 2% and are applied to gross wages. These taxes are applicable to individuals working in those areas, regardless of their residency.
What information is needed to use an Alabama paycheck calculator?
To use an Alabama paycheck calculator, you generally need to provide your gross pay (whether hourly or annual salary), your pay frequency, and the information from your W-4 form, which includes your filing status, the number of dependents, and any additional withholding you wish to have deducted. Contributions to pre-tax benefits, such as 401(k)s or health savings accounts, can also be factored into the calculation.