Filing and paying Alabama income tax
- Return
- Form 40 for full-year residents, due April 15. Attach pages 1 and 2 of your federal return if you claim the federal income tax deduction.
- Withholding
- Alabama uses Form A-4. Its formula subtracts your federal withholding, so state withholding falls as federal withholding rises.
To see how Alabama sits against every other state on top rate, bracket count and standard deduction, see state income tax rates for 2026 — all 51 jurisdictions in one sortable table.
How Alabama Income Tax Compares to Neighboring States
Total income tax (federal + state) on a $100,000 annual salary in 2026, single filer using the standard deduction:
| State | State Tax | Total Income Tax | vs. Alabama |
|---|---|---|---|
| Alabama (here) | $4,102 | $17,272 | — |
| Florida | $0 | $13,170 | -$4,102 |
| Georgia | $4,242 | $17,412 | +$140 |
| Tennessee | $0 | $13,170 | -$4,102 |
| Mississippi | $3,268 | $16,438 | -$834 |
A negative "vs." figure means that state collects less total income tax than Alabama. Federal portion is identical across states; only state tax varies.
Frequently Asked Questions
What is the Alabama state income tax rate for 2026?
Alabama state income tax for 2026 ranges from 2% on the lowest bracket to 5% on income above $3,000 (single filer). The top rate starts low enough that most full-time earners pay it on part of their income.
How much income tax will I pay in Alabama on a $100,000 salary?
For a single filer earning $100,000 in Alabama in 2026, expect approximately $13,170 in federal income tax and $4,102 in Alabama state income tax — for a total income tax of about $17,272, an effective rate of 17.3%. This excludes FICA (Social Security and Medicare), which adds roughly 7.65% on top.
Can I deduct federal income tax on my Alabama return?
Yes. Alabama allows a deduction for your federal income tax, less refundable credits such as the earned income credit, figured on the worksheet in the Form 40 instructions.
What is the Alabama income tax rate?
2% on the first $500 of taxable income, 4% up to $3,000, and 5% above for single filers; joint filers' brackets are doubled, to $1,000 and $6,000.
Does Alabama tax Social Security or pensions?
Not Social Security, military retirement, or defined benefit pensions, including Alabama's public retirement systems. IRA and 401(k) distributions are generally taxable.
What is the Alabama standard deduction?
Up to $3,000 single and $8,500 joint, shrinking as AGI rises above $25,999 to $2,500 and $5,000 at $35,500.
For the preferential federal rates on long-term gains, see the Capital Gains Tax Calculator. For the federal brackets, standard deduction, and Social Security wage base that sit underneath this state calculation, see 2026 Tax Calculators.