State income tax · Alabama
Alabama income tax rates
Alabama's income tax on wages: the rate structure, the brackets and the source for each figure.
Data: Tax year 2026 (where a state has not published 2026 brackets yet, its latest published year, labelled on the row) Sources read Review by
CheckedOct 19, 2026These are the figures for tax year 2026.
- Structure
- Graduated brackets
- Top rate
- 5%
- Lowest rate
- 2%
- Brackets (single)
- 3
- Local income taxes
- Yes, in some localities
Brackets
Each rate applies only to the part of taxable income above its threshold and up to the next one; that is what a graduated schedule means. Taxable income is the state's own measure, after its deductions and exemptions.
| Taxable income over | Rate on income above that amount |
|---|---|
| $0 | 2% |
| $500 | 4% |
| $3,000 | 5% |
| Taxable income over | Rate on income above that amount |
|---|---|
| $0 | 2% |
| $1,000 | 4% |
| $6,000 | 5% |
Notes
Alabama's three rates and fixed (non-indexed) brackets are stated by the Department of Revenue and repeated in its withholding booklet revised January 2026; married couples filing jointly use brackets twice as wide. Some Alabama cities and counties levy local occupational taxes on wages, which the state does not administer.
Sources
We read each source on the date shown and quote the line we relied on.
- What is Alabama's Individual Income Tax Rate? (FAQ) (external site)
For married persons filing a joint return: 2% First $1,000 of taxable income 4% Next $5,000 of taxable income 5% All taxable income over $6,000
- Withholding Tax Tables and Instructions for Employers and Withholding Agents (Revised January 2026) (external site)
To obtain information concerning local occupational tax, you must contact the city or county which is administering the tax.