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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 relatively low income taxes. The Heart of Dixie has a variable income tax rate, in which the amount of tax withheld depends on which of three tax brackets you fall under. This generally means that you’ll be taxed more if you earn more.

Residents of Alabama usually have their federal tax, along with their state tax, withheld from each paycheck. Depending on which county you live in, local income taxes are also withheld.

This calculator reflects the 2018 federal withholding tax changes.
Click here to learn more about how the Trump Tax Plan will affect you.

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You can't withhold more than your earnings. Please adjust your .

Your estimated -- take home pay:
$--

Where is your money going?
Gross Paycheck $--
Taxes --% $--
Federal Income --% $--
State Income --% $--
Local Income --% $--
FICA --% $--
Social Security --% $--
Medicare --% $--
Pre-Tax Deductions --% $--
Post-Tax Deductions --% $--
Take Home Salary --% $--
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  • 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: $44,758 (U.S. Census Bureau)
  • Number of cities with local income taxes: 4

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. It’s not fun, but it is unavoidable.

Your employer usually withholds FICA and federal income taxes from your paychecks, as well as state and local taxes if it applies to your situation. FICA and federal taxes go to the IRS, who dishes them out to Medicare and Social Security, as well as for your annual income taxes. Your employer will withhold a certain amount of federal taxes depending on the information you provide on your W-4 tax form. You will need to fill out a new form every time you start a new job or if you want or need to make changes to your most recent one.

In December 2017, President Trump signed a new tax plan into law. The IRS has since released updated tax withholding guidelines and taxpayers should have seen changes to their paychecks, to reflect the new tax plan, starting in February 2018. When exactly you see changes will depend on when your employer makes the change and how often you receive paychecks. For the time being, taxpayers do not need to fill out a new W-4. Employers will use the withholdings on your current form.

One factor that affects how much tax is withheld is your marital status. Whether or not you are married (and whether or not you indicated that on your W-4) will impact how much money gets taken out of your paycheck for taxes. If you are married, filing jointly or separately also affects how much tax is withheld.

You might also get a bigger paycheck if you qualify for certain withholding allowances, such as the number of dependents you have. Keep in mind though, that if you’re getting a bigger paycheck, you might have a bigger tax bill come April of each year. It’s a good idea to play around with a paycheck calculator to see how claiming certain allowances can affect how much tax is taken out.

Your paycheck size will also differ depending on any contributions you choose to make. Say, for example, your employer offers health benefits. You can elect to contribute money toward a Flexible Spending Account or a Health Savings Plan, so these will be deducted from your paycheck. Also, let’s say you want to contribute to retirement plans like a 401(k) plan or Roth IRA, this money will be taken out before your earnings hit your bank account.

Alabama Median Household Income

YearMedian Income
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 you’re a single person in the state of Alabama, married but filing separate from your spouse or the head of your household (as in you’re the only one in your family earning income), you will get taxed 2% on your first $500 of taxable income, 4% if you earn up to $3,000 and 5% on income over that amount. If you’re married and filing jointly, that 2% taxable income goes up to the first $1,000, 4% up to $6,000 and 5% over that.

Alabamians working in Birmingham, Gadsden, Bessemer or in Macon County, have to pay local income taxes of 1% or 2%, whether or not you’re a resident in those areas. Sorry, looks like there’s no exemption there.

But 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 getting mortgages in Alabama.

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%

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 will be 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%

How You Can Affect Your Alabama Paycheck

If you always face a big tax bill in April, you may want to ask your employer to withhold a dollar amount from each of your paychecks when you fill out a new W-4 form. Say, for example, you want to withhold $50 from each paycheck, simply write that amount on the correct line on the form.

Another way you can change how much tax is withheld from your paycheck is to change your allowances. Maybe you have a new dependent you want to claim, or you just got married or divorced. The more allowances you claim, the less taxes you’ll have taken out and the bigger your paycheck will be. But be wary of claiming too many allowances, as you don’t want to underpay your taxes all year and have to pay a lump sum during tax season.

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 is taken out before taxes, it lowers your taxable income which 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
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 country. Zoom between states and the national map to see data points for each region, or look specifically at one of the four factors driving 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 Our study aims to find the most paycheck friendly places in the country. These are places in the country with favorable economic conditions where you get to keep more of the money you make. To find these places we considered four different 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.

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 rate index that shows the counties with the lowest unemployment. For income growth, we calculated the annual growth in median income over five years for each county and 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 2016 5-Year American Community Survey, MIT Living Wage Study, Bureau of Labor Statistics