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Alabama Paycheck Calculator

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Use SmartAsset's paycheck calculator to calculate your take home pay per paycheck for both salary and hourly jobs after taking into account federal, state, and local taxes.

Overview of Alabama Taxes

Alabama has income taxes that range from 2% up to 5%, slightly below the national average. The Heart of Dixie has a progressive income tax rate, in which the amount of tax withheld depends on which of its three tax brackets you fall under. This generally means that you’ll be at a higher rate if you earn more. Depending on which county you live in, local income taxes may also be withheld.

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Your estimated -- take home pay:
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Gross Paycheck $--
Taxes --% $--
Federal Income --% $--
State Income --% $--
Local Income --% $--
FICA and State Insurance Taxes --% $--
Social Security --% $--
Medicare --% $--
State Disability Insurance Tax --% $--
State Unemployment Insurance Tax --% $--
State Family Leave Insurance Tax --% $--
State Workers Compensation Insurance Tax --% $--
Pre-Tax Deductions --% $--
Post-Tax Deductions --% $--
Take Home Salary --% $--
  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

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Alabama Paycheck Calculator

Photo credit: ©iStock.com/wellesenterprises

Alabama Paycheck Quick Facts

  • State income tax rate: 2% - 5%
  • Median household income: $48,486 (U.S. Census Bureau)
  • Number of cities with local income taxes: 25

How Your Alabama Paycheck Works

Whether you’re a Huntsville Havoc or a Birmingham Barons fan, you’re going to get taxes taken out of your paycheck. Your employer withholds FICA and federal income taxes from your paychecks. These taxes go to the IRS, who in turn sends them to Medicare and Social Security and applies them toward your annual income taxes.

Your employer also withholds Alabama state income tax. Depending on where you live in the state, local taxes may also come out of your paycheck. The amount your employer withholds will depend on the information you provide on your W-4 tax form. You need to fill out a new W-4 every time you start a new job and you may want or need to fill out a new one after big life changes, such as marriage or divorce. If you haven’t reviewed your W-4 recently, you may want to check it at the beginning of 2020 just to make sure all the information is still correct.

One factor that may affect how much tax is withheld from your paycheck is your marital status. Because your filing status affects what income tax bracket you are in, it also impacts how much comes out of your paycheck for income taxes.

Your paycheck size will also differ depending on any contributions you choose to make. Say, for example, your employer offers health benefits. If you elect to contribute money toward a flexible spending account or a health savings plan, it will be deducted from your paycheck. The same is true if you want to contribute to a retirement plan like a 401(k) plan. This money will be taken out before your earnings hit your bank account; because they’re considered pre-tax contributions, your total taxable income (and thus the taxes you pay) will go down. (A notable exception is contributions to a Roth 401(k), which come out after income tax is applied).

Alabama Median Household Income

YearMedian Household Income
2018$48,486
2017$46,472
2016$44,758
2015$43,623
2014$42,830
2013$42,849
2012$41,574
2011$41,415
2010$40,474
2009$40,489
2008$42,666

If your filing status is single, married filing separately or head of household, you will get taxed 2% on your first $500 of taxable income, 4% on earnings up to $3,000 and 5% on income over that amount. If you’re married and filing jointly, that 2% of taxable income goes up to the first $1,000, 4% on up to $6,000 and 5% over that.

Alabamians working in some cities and counties have to pay local income taxes, called occupational taxes, of between 0.5% and 2%. These local taxes apply whether or not you’re a resident in those areas.

Income Tax Brackets

Single Filers
Alabama Taxable IncomeRate
$0 - $5002.00%
$500 - $3,0004.00%
$3,000+5.00%
Married, Filing Jointly
Alabama Taxable IncomeRate
$0 - $1,0002.00%
$1,000 - $6,0004.00%
$6,000+5.00%
Married, Filing Separately
Alabama Taxable IncomeRate
$0 - $5002.00%
$500 - $3,0004.00%
$3,000+5.00%
Head of Household
Alabama Taxable IncomeRate
$0 - $5002.00%
$500 - $3,0004.00%
$3,000+5.00%

A financial advisor in Alabama can help you understand how taxes fit into your overall financial goals. Financial advisors can also help with investing and financial plans, including retirement, homeownership, insurance and more, to make sure you are preparing for the future.

Depending on where you live in the Yellowhammer State, you’re also going to be paying municipal occupational taxes. These apply to your gross wages -- not your taxable income -- and are withheld from your paycheck.

Occupational Tax Rates

CityOccupational Tax Rate
Attalla2.00%
Auburn1.00%
Bear Creek1.00%
Bessemer1.00%
Birmingham1.00%
Brilliant1.00%
Fairfield1.00%
Gadsden2.00%
Glencoe2.00%
Goodwater0.75%
Guin1.00%
Hacklebug1.00%
Haleyville1.00%
Hamilton1.00%
Leeds1.00%
Lynn1.00%
Midfield1.00%
Mosses1.00%
Opelika1.50%
Rainbow City2.00%
Red Bay0.50%
Shorter1.00%
Southside2.00%
Sulligent1.00%
Tuskegee2.00%

Overall, Alabama has one of the lowest tax burdens in the U.S. If the combination of low property taxes and low income taxes has you considering a move to the Yellowhammer State, take a look at our mortgage guide for details on rates and getting a mortgage in Alabama.

How You Can Affect Your Alabama Paycheck

The simplest way to change how much tax is withheld from your paycheck is to ask your employer to withhold a specific dollar amount from each of your paychecks. There is a line on the W-4 that allows you to specify additional withholding. Say, for example, you want to withhold $50 from each paycheck. Simply write that amount on the correct line on the W-4.

Finally, making pre-tax contributions can affect your paycheck. If you can afford it, consider sheltering more money in pre-tax retirement accounts such as your 401(k) or 403(b). Since that money comes out of your wages before income taxes are removed, it lowers your taxable income and can help save you money. The same goes for putting money into a Health Savings Account or a Flexible Spending Account. Just remember that you have to actually use any money you put into an HSA or FSA or you will lose it, as those accounts don’t roll over from year to year.

Alabama Top Income Tax Rate

YearRate
20195.00%
20185.00%
20175.00%
20165.00%
20155.00%
20145.00%
20135.00%
20125.00%
20115.00%
20095.00%
20085.00%
20075.00%

Most Paycheck Friendly Places

SmartAsset's interactive map highlights the most paycheck friendly counties across the U.S. Zoom between states and the national map to see data points for each region, or look specifically at one of the four ranking factors in our analysis: Semi-Monthly Paycheck, Purchasing Power, Unemployment Rate, and Income Growth.

Worse
Better
Rank County Semi-Monthly Paycheck Purchasing Power Unemployment Rate Income Growth

Methodology To find the most paycheck friendly places for counties across the country, we considered four factors: semi-monthly paycheck, purchasing power, unemployment rate and income growth.

First, we calculated the semi-monthly paycheck for a single individual with two personal allowances. We applied relevant deductions and exemptions before calculating income tax withholding. To better compare withholding across counties, we assumed a $50,000 annual income. We then indexed the paycheck amount for each county to reflect the counties with the lowest withholding burden, or greatest take-home pay.

We then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living. We also created an unemployment index that shows the counties with the lowest rate of unemployment. For income growth, we calculated the annual growth in median income throughout a five year period for each county and then indexed the results.

Finally, we calculated the weighted average of the indices to yield an overall paycheck friendliness score. We used a one-half weighting for semi-monthly paycheck and a one-sixth weighting for purchasing power, unemployment rate and income growth. We indexed the final number, so higher values reflect the most paycheck friendly places.

Sources: SmartAsset, government websites, US Census Bureau 2018 American Community Survey, MIT Living Wage Study, Bureau of Labor Statistics