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Alabama Income Tax Calculator

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Overview of Alabama Taxes

Alabama is a state with relatively low taxes, including effective property tax rates, income tax rates and sales tax. But there are areas of the state where people will pay higher income and sales taxes. Retired? Use our Retirement Income Tax Calculator.

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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2017 
Taxes
2018 Trump Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes

* These will be the taxes owed for the 2018 - 2019 filing season.

Under the Trump Tax Plan (2018-2019 filing season), your Federal Income Tax will be and your FICA will be .

Changes to Your Federal Income
Taxes Under the Trump Tax Plan

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

Total Estimated Tax Burden

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

    ...read more
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Alabama state tax quick facts
  • State income tax: 2% - 5%
  • Local income tax: 0% - 2%
  • Sales tax: 4% - 10%
  • Property tax: 0.41% average effective rate
  • Gas tax: 20.91 cents per gallon of regular gasoline, 21.89 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 2% to 5%, lower than most other states that have an income tax. The statewide sales tax of 4% ranks as the 7th lowest in the country.

It’s not all good news for Alabama taxpayers, however. Depending on where in Alabama you live or work, rates could be significantly higher. Local governments can collect both sales taxes of up to 6%, and income taxes ranging from 0% - 2%. Below, we’ll look at where these local rates apply, as well as important rules and exemptions to Alabama’s state taxes.

Alabama Income Tax

The state income tax in Alabama is similar to the federal income tax, with increasing rates based on income brackets. While the federal income tax has seven brackets, however, Alabama has just three, with the top rate of 5% applying to all taxable income over $3,000. The table below shows the full tax brackets for taxpayers 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%

Those rates do not apply to gross income, but Alabama taxable income—gross income less any applicable deductions and exemptions. Taxpayers who itemize deductions federally may also do so on their Alabama return but may claim the Alabama standard deduction instead (and vice versa). You can look into tax preparation software like TurboTax and H&R Block to help you with filing taxes.

The Alabama standard deduction varies depending on filing status and income. Above a certain income, the deduction descends steadily for increasing income levels, until it reaches its minimum amount at either $15,000 or $30,000, as 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
$30,000+$2,000
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
$30,000+$4,000
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
$15,000+$2,000
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
$30,000+$2,000

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
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%

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 levied at the city level. The table below shows the total rates (including both state and city) for the 100 largest cities in Alabama.

Sales Tax Rates (Updated October 18 2017)

CityState RateCounty RateTotal Sales Tax
Alabaster4.00%5.00%9.00%
Albertville4.00%5.00%9.00%
Alexander City4.00%6.00%10.00%
Andalusia4.00%5.50%9.50%
Anniston4.00%6.00%10.00%
Arab4.00%5.00%9.00%
Athens4.00%5.00%9.00%
Atmore4.00%6.00%10.00%
Attalla4.00%6.00%10.00%
Auburn4.00%5.00%9.00%
Bay Minette4.00%6.00%10.00%
Bessemer4.00%5.00%9.00%
Birmingham4.00%5.00%9.00%
Boaz4.00%4.00%8.00%
Brewton4.00%6.00%10.00%
Calera4.00%5.00%9.00%
Center Point4.00%3.00%7.00%
Chelsea4.00%5.00%9.00%
Chickasaw4.00%6.00%10.00%
Clanton4.00%5.00%9.00%
Clay4.00%5.00%9.00%
Cullman4.00%5.00%9.00%
Daphne4.00%5.50%9.50%
Decatur4.00%5.00%9.00%
Demopolis4.00%5.00%9.00%
Dothan4.00%5.00%9.00%
Enterprise4.00%5.00%9.00%
Eufaula4.00%5.50%9.50%
Fairfield4.00%5.00%9.00%
Fairhope4.00%5.00%9.00%
Florence4.00%4.50%8.50%
Foley4.00%6.00%10.00%
Fort Payne4.00%5.00%9.00%
Fultondale4.00%5.00%9.00%
Gadsden4.00%5.00%9.00%
Gardendale4.00%5.00%9.00%
Greenville4.00%6.00%10.00%
Gulf Shores4.00%6.00%10.00%
Guntersville4.00%4.00%8.00%
Hamilton4.00%5.00%9.00%
Hartselle4.00%5.00%9.00%
Helena4.00%5.00%9.00%
Homewood4.00%5.00%9.00%
Hoover4.00%4.00%8.00%
Hueytown4.00%5.00%9.00%
Huntsville4.00%5.00%9.00%
Irondale4.00%5.00%9.00%
Jacksonville4.00%6.00%10.00%
Jasper4.00%5.00%9.00%
Lanett4.00%6.00%10.00%
Leeds4.00%6.00%10.00%
Lincoln4.00%6.00%10.00%
Madison4.00%5.50%9.50%
Midfield4.00%5.00%9.00%
Millbrook4.00%4.50%8.50%
Mobile4.00%6.00%10.00%
Monroeville4.00%5.00%9.00%
Montevallo4.00%5.00%9.00%
Montgomery4.00%6.00%10.00%
Moody4.00%6.00%10.00%
Mountain Brook4.00%4.00%8.00%
Muscle Shoals4.00%5.00%9.00%
Northport4.00%5.00%9.00%
Oneonta4.00%6.00%10.00%
Opelika4.00%5.00%9.00%
Opp4.00%6.00%10.00%
Orange Beach4.00%6.00%10.00%
Oxford4.00%6.00%10.00%
Ozark4.00%6.00%10.00%
Pelham4.00%5.00%9.00%
Pell City4.00%6.00%10.00%
Phenix City4.00%5.00%9.00%
Pike Road4.00%4.75%8.75%
Pinson4.00%5.00%9.00%
Pleasant Grove4.00%5.00%9.00%
Prattville4.00%5.50%9.50%
Prichard4.00%6.00%10.00%
Rainbow City4.00%5.00%9.00%
Roanoke4.00%6.00%10.00%
Robertsdale4.00%5.00%9.00%
Russellville4.00%5.00%9.00%
Saraland4.00%6.00%10.00%
Satsuma4.00%6.00%10.00%
Scottsboro4.00%5.00%9.00%
Selma4.00%6.00%10.00%
Sheffield4.00%5.00%9.00%
Southside4.00%6.00%10.00%
Spanish Fort4.00%4.50%8.50%
Sylacauga4.00%4.00%8.00%
Talladega4.00%6.00%10.00%
Tallassee4.00%6.00%10.00%
Tarrant4.00%5.00%9.00%
Troy4.00%5.50%9.50%
Trussville4.00%6.00%10.00%
Tuscaloosa4.00%5.00%9.00%
Tuscumbia4.00%5.00%9.00%
Tuskegee4.00%6.00%10.00%
Valley4.00%6.00%10.00%
Vestavia Hills4.00%4.00%8.00%
Wetumpka4.00%4.00%8.00%

Among the types of products subject to those rates 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 has either the lowest or second lowest property taxes in the nation. To begin with, Alabama homeowners pay an average of just $543 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, with a rate of just 0.41%. (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.

Calculate Your Property Taxes: Alabama Property Tax Calculator

Alabama Capital Gains Tax

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

Alabama Playing Card Tax

Buyers and sellers of playing cards in Alabama have to pay up. In addition to standard sales taxes, purchasers have to pay a 10 cent fee per deck. Sellers must pay for a license that costs a whopping $3 per year, and an additional $1 fee per deck.

Alabama Tobacco Tax

Cigarettes are taxed at a rate of 67.5 cents per pack of 20 in Alabama. That’s the 12th lowest rate in the country.

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.

Places with the Lowest Tax Burden

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

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Rank County Income Tax Sales Tax Property Tax Fuel Tax

Methodology

Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.

For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to rank the counties to calculate a total tax burden.

Sources: US Census Bureau 2016 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset