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Alabama Income Tax Calculator

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DEC 23, 2021

Overview of Alabama Taxes

Alabama is a state with relatively low income tax and effective property tax rates. The state sales tax of 4% is also low, but local rates can more than double what you pay in sales tax in some cities.

Enter your financial details to calculate your taxes
Household Income
Filing Status
401(k) Contribution
IRA Contribution
Itemized Deductions
Number of State Personal Exemptions

Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Tax Rate
Total Income Taxes
Income After Taxes
Retirement Contributions
Take-Home Pay

* These are the taxes owed for the 2021 - 2022 filing season.

Your 2021 Federal Income Tax Comparison

  • Your marginal federal income tax rate
  • Your effective federal income tax rate
  • Your federal income taxes

Total Estimated 2021 Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2020 - 2021 filing season based on the Trump Tax Plan.

    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes. more
  • Last Updated: January 1, 2021

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email more
  • Our Expert more
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Taxes in Alabama

Alabama State Tax Quick Facts

  • State income tax: 2% - 5%
  • Local income tax: 0% - 2%
  • Sales tax: 5% - 11.5%
  • Property tax: 0.4% average effective rate
  • Gas tax: 26 cents per gallon of regular gasoline, 27 cents per gallon of diesel

Taxes in the Yellowhammer State are by and large lower than in most other states. Alabama has the second lowest average effective property tax rate in the country, and its income tax rates range from just 2% to 5%, lower than most other states that have an income tax. However, rates could be higher depending on where in Alabama you live or work, as local governments can also collect income taxes ranging from 0% to 2%.

The statewide sales tax of 4% ranks as one of the lowest in the country, but local sales taxes bring the average sales tax in the state up to 9.22%, which is the fifth-highest nationwide.

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.

Alabama Income Taxes

The state income tax in Alabama is similar to the federal income tax, with increasing rates based on income brackets. However, while the federal income tax has seven brackets, Alabama has just three, with the top rate of 5% applying to all taxable income over $3,000.

Income Tax Brackets

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

These rates do not apply to gross income, but to Alabama taxable income, which is gross income minus any applicable deductions and exemptions. Taxpayers who itemize deductions federally may also do so on their Alabama return, but they can claim the Alabama standard deduction instead (and vice versa).

The Alabama standard deduction varies depending on filing status and income. At a certain point, the deduction descends steadily for increasing income levels, until it reaches its minimum amount at either $15,000 or $30,000, as is reflected in the table below.

Standard Deduction Tables

Single Filers
Alabama AGIStandard Deduction
$0 - $20,499$2,500
$20,500 - $20,999$2,475
$21,000 - $21,499$2,450
$21,500 - $21,999$2,425
$22,000 - $22,499$2,400
$22,500 - $22,999$2,375
$23,000 - $23,499$2,350
$23,500 - $23,999$2,325
$24,000 - $24,499$2,300
$24,500 - $24,999$2,275
$25,000 - $25,499$2,250
$25,500 - $25,999$2,225
$26,000 - $26,499$2,200
$26,500 - $26,999$2,175
$27,000 - $27,499$2,150
$27,500 - $27,999$2,125
$28,000 - $28,499$2,100
$28,500 - $28,999$2,075
$29,000 - $29,499$2,050
$29,500 - $29,999$2,025
Married, Filing Jointly
Alabama AGIStandard Deduction
$0 - $20,499$7,500
$20,500 - $20,999$7,325
$21,000 - $21,499$7,150
$21,500 - $21,999$6,975
$22,000 - $22,499$6,800
$22,500 - $22,999$6,625
$23,000 - $23,499$6,450
$23,500 - $23,999$6,275
$24,000 - $24,499$6,100
$24,500 - $24,999$5,925
$25,000 - $25,499$5,750
$25,500 - $25,999$5,575
$26,000 - $26,499$5,400
$26,500 - $26,999$5,225
$27,000 - $27,499$5,050
$27,500 - $27,999$4,875
$28,000 - $28,499$4,700
$28,500 - $28,999$4,525
$29,000 - $29,499$4,350
$29,500 - $29,999$4,175
Married, Filing Separately
Alabama AGIStandard Deduction
$0 - $10,249$3,750
$10,250 - $10,499$3,662
$10,500 - $10,749$3,574
$10,750 - $10,999$3,486
$11,000 - $11,249$3,398
$11,250 - $11,499$3,310
$11,500 - $11,749$3,222
$11,750 - $11,999$3,134
$12,000 - $12,249$3,046
$12,250 - $12,499$2,958
$12,500 - $12,749$2,870
$12,750 - $12,999$2,782
$13,000 - $13,249$2,694
$13,250 - $13,499$2,606
$13,500 - $13,749$2,518
$13,750 - $13,999$2,430
$14,000 - $14,249$2,342
$14,250 - $14,499$2,254
$14,500 - $14,749$2,166
$14,750 - $14,999$2,078
Head of Household
Alabama AGIStandard Deduction
$0 - $20,499$4,700
$20,500 - $20,999$4,565
$21,000 - $21,499$4,430
$21,500 - $21,999$4,295
$22,000 - $22,499$4,160
$22,500 - $22,999$4,025
$23,000 - $23,499$3,890
$23,500 - $23,999$3,755
$24,000 - $24,499$3,620
$24,500 - $24,999$3,485
$25,000 - $25,499$3,350
$25,500 - $25,999$3,215
$26,000 - $26,499$3,080
$26,500 - $26,999$2,945
$27,000 - $27,499$2,810
$27,500 - $27,999$2,675
$28,000 - $28,499$2,540
$28,500 - $28,999$2,405
$29,000 - $29,499$2,270
$29,500 - $29,999$2,135

Alabamans in certain cities must also pay municipal occupational taxes. Unlike Alabama state income taxes, municipal occupational taxes apply to gross wages (as opposed to taxable income), and are typically withheld from workers’ paychecks. The table below shows the rates for the cities in Alabama with an occupational tax.

Occupational Tax Rates

CityOccupational Tax Rate
Bear Creek1.00%
Rainbow City2.00%
Red Bay0.50%

Alabama Sales Tax

Most goods sold in Alabama will be subject to both state and local sales taxes. The state sales tax rate is 4%. Additional taxes are then levied at the local level. The table below shows the total rates for all of Alabama's counties.

Sales Tax Rates(Updated January 2022)

CountyState RateCounty RateTotal Sales Tax
Autauga County4.00%2.00%6.00%
Baldwin County4.00%3.00%7.00%
Barbour County4.00%1.50%5.50%
Bibb County4.00%4.00%8.00%
Blount County4.00%3.00%7.00%
Bullock County4.00%2.50%6.50%
Butler County4.00%1.50%5.50%
Calhoun County4.00%1.00%5.00%
Chambers County4.00%1.00%5.00%
Cherokee County4.00%3.50%7.50%
Chilton County4.00%4.00%8.00%
Choctaw County4.00%3.00%7.00%
Clarke County4.00%1.00%5.00%
Clay County4.00%2.00%6.00%
Cleburne County4.00%2.00%6.00%
Coffee County4.00%1.00%5.00%
Colbert County4.00%1.50%5.50%
Conecuh County4.00%2.00%6.00%
Coosa County4.00%2.00%6.00%
Covington County4.00%2.50%6.50%
Crenshaw County4.00%3.50%7.50%
Cullman County4.00%4.50%8.50%
Dale County4.00%2.00%6.00%
Dallas County4.00%1.50%5.50%
DeKalb County4.00%1.00%5.00%
Elmore County4.00%1.00%5.00%
Escambia County4.00%2.00%6.00%
Etowah County4.00%1.00%5.00%
Fayette County4.00%2.00%6.00%
Franklin County4.00%2.00%6.00%
Geneva County4.00%2.00%6.00%
Greene County4.00%3.00%7.00%
Hale County4.00%3.00%7.00%
Henry County4.00%2.00%6.00%
Houston County4.00%1.00%5.00%
Jackson County4.00%2.00%6.00%
Jefferson County4.00%2.00%6.00%
Lamar County4.00%2.00%6.00%
Lauderdale County4.00%1.50%5.50%
Lawrence County4.00%3.00%7.00%
Lee County4.00%4.00%8.00%
Limestone County4.00%2.00%6.00%
Lowndes County4.00%4.00%8.00%
Macon County4.00%2.50%6.50%
Madison County4.00%1.50%5.50%
Marengo County4.00%2.00%6.00%
Marion County4.00%2.00%6.00%
Marshall County4.00%1.00%5.00%
Mobile County4.00%1.50%5.50%
Monroe County4.00%2.50%6.50%
Montgomery County4.00%2.50%6.50%
Morgan County4.00%3.00%7.00%
Perry County4.00%3.00%7.00%
Pickens County4.00%4.00%8.00%
Pike County4.00%3.50%7.50%
Randolph County4.00%2.50%6.50%
Russell County4.00%4.00%8.00%
Saint Clair County4.00%2.00%6.00%
Shelby County4.00%1.00%5.00%
Sumter County4.00%3.00%7.00%
Talladega County4.00%3.00%7.00%
Tallapoosa County4.00%2.00%6.00%
Tuscaloosa County4.00%5.00%9.00%
Walker County4.00%2.00%6.00%
Washington County4.00%1.00%5.00%
Wilcox County4.00%4.50%8.50%
Winston County4.00%2.00%6.00%

Among the types of products subject to the rates above are clothing, furniture, electronics and automobiles. Food is also taxable in Alabama. In fact, Alabama is also one of just two states that taxes all food at the full sales tax rate, without offering any form of food tax rebate or relief.

Alabama Property Tax

Depending on how you measure it, Alabama's property taxes are either the lowest or second lowest in the nation. To begin with, Alabama homeowners pay an average of just $609 every year in property taxes, the lowest annual average of any state. When measuring effective property tax rates (payments as a percentage of home value), Alabama ranks second lowest with a rate of 0.40%. Hawaii, where home values are more than quadruple those in Alabama, ranks first.

If such low property taxes make you want to call Alabama home sweet home, check out our mortgage guide for the most important information about getting a mortgage in Alabama. Also check it out if you’re looking to refinance a property in the Yellowhammer State.

Alabama Capital Gains Tax

Capital gains are taxed as normal income in Alabama, and thus they are subject to the top income tax rate of 5%. City occupational taxes do not apply to capital gains, however, since they are not wages.

Alabama Tobacco Tax

Cigarettes are taxed at a rate of 68 cents per pack of 20 in Alabama.

Photo credit: flickr
  • Alabama derives its nickname, “The Yellowhammer State,” from the state bird, the northern flicker, a type of woodpecker often referred to as a yellowhammer.
  • The University of Alabama and Auburn University both rank in the top 20 nationally for average attendance at their home college football games, with over 100,000 and 80,000, respectively, in average attendance.