Alabama Paycheck Calculator 2026

Estimate your 2026 Alabama take-home pay from salary or hourly wages with this free Alabama paycheck calculator. See federal income-tax withholding, Social Security, Medicare, Alabama state income-tax withholding at 2% to 5%, any local occupational tax and your payroll deductions. It works for salary and hourly pay on weekly, biweekly, semimonthly and monthly schedules.

By Rachel Brooks, Tax Forms and W-2 Content Specialist · Updated September 23, 2026 · Tested against the ALDOR 2026 formula

Calculate Take-Home Pay Alabama Payroll Guide

Gross pay$2,307.69

Pay frequencyBiweekly

Taxes & deductionsCurrent

Federal income tax$193.08

Social Security + Medicare$176.54

Alabama state income tax$96.50

Estimated net pay$1,841.57

Illustrative example: $60,000 annual salary, single filer, Alabama A-4 status S, paid biweekly, with no dependents, local tax or voluntary deductions. Use the calculator below for your own estimate.

2% to 5% Alabama taxForm A-4 withholding plus local occupational tax where it applies

Federal W-4 + FICAFederal withholding, Social Security and Medicare

Salary or hourlyWeekly, biweekly, semimonthly and monthly pay

Alabama Paycheck Calculator

Pay details

Pay type

Salary Hourly

Annual salary

Pay frequency

Federal Form W-4

Filing status

Step 3: Credits (annual dependent and other credits)

Step 4(a): Other annual income

Step 4(b): Deductions

Step 4(c): Extra withholding (per paycheck)

Step 2(c) Multiple jobs or spouse also works Exempt from federal income-tax withholding, when qualified

Need the form itself? Use our Form W-4.

3 Alabama Form A-4

A-4 exemption status

Dependents Enter the number claimed for Alabama withholding.

Additional Alabama withholding (per paycheck)

Local occupational tax rate (when applicable)

Enter the applicable municipal occupational rate only when the employee's work location is subject to one.

Work location (optional, fills the local rate) Huntsville, Montgomery, Mobile, Tuscaloosa and most other cities don't levy one. Confirm the current rate with the city.

Alabama Form A-4 is separate from federal Form W-4. Alabama withholding uses the employee's A-4 election, dependents, applicable deductions and actual federal income-tax withholding.

Deductions

Traditional retirement (per paycheck, cuts federal income tax)

Section 125 / HSA (per paycheck, can cut FICA too)

Other post-tax deductions (per paycheck)

Advanced payroll fields

YTD Social Security wages (stops SS at the $184,500 base)

YTD Medicare wages (for Additional Medicare)

79.8% Take home

Your paycheck

Take-home pay $1,841.57

Taxes $466.12

Other deductions $0.00

Where your money goesCurrent pay

Gross pay$2,307.69

Federal income tax−$193.08

Social Security−$143.08

Medicare−$33.46

Additional Medicare$0.00

Alabama income tax −$96.50

Traditional retirement$0.00

Section 125 / HSA$0.00

What You Should Know About Alabama Paychecks

An accurate Alabama withholding estimate needs more than a simple state-tax percentage. Alabama withholding depends on taxable wages, the employee's Form A-4 election, the applicable standard deduction, personal and dependent exemptions, and federal income-tax withholding used in the Alabama formula.

Alabama has graduated individual income-tax rates of 2%, 4% and 5%. Most taxable income reaches the 5% bracket quickly, but that doesn't mean 5% of gross pay is withheld. Alabama is one of the few states that lets you subtract federal income tax before figuring state tax, and the standard deduction and exemptions come off too. On a $60,000 salary, that's why Alabama withholding works out to about 4.2% of gross pay, not 5%.

Where you work matters as well. The Birmingham occupational tax is one example: Birmingham, Bessemer, Gadsden, Opelika, Auburn and roughly 20 other Alabama cities and towns levy a local occupational tax of 0.5% to 2% on wages, while Huntsville, Montgomery, Mobile and Tuscaloosa don't.

This page works as an Alabama take-home pay calculator for salary and hourly employees. It estimates federal withholding, Social Security, Medicare, Alabama withholding, deductions and an optional local occupational tax so you can see how gross pay becomes net pay.

2% to 5% Alabama income-tax rates

Alabama uses graduated 2%, 4% and 5% individual income-tax brackets.

A-4 Alabama withholding form

Form A-4 is Alabama's employee withholding exemption certificate.

$184,500 2026 Social Security wage base

Employee Social Security withholding is 6.2% up to the 2026 wage base.

Alabama Income Tax Calculator: Withholding at a Glance

This Alabama tax calculator separates the main employee paycheck taxes so you can see which deductions are federal, which are Alabama-specific and which only apply in certain work locations.

Major Alabama employee paycheck lines in 2026
Paycheck item	2026 treatment	Employee deduction?
Federal income tax	Based on wages, pay frequency and federal Form W-4 elections	Yes
Social Security	6.2% up to the $184,500 Social Security wage base	Yes
Medicare	1.45% on Medicare wages, plus 0.9% Additional Medicare withholding after employer-paid wages exceed $200,000	Yes
Alabama income-tax withholding	Uses Form A-4, the standard deduction, federal tax withheld, personal and dependent exemptions and Alabama's 2%, 4% and 5% brackets	Yes
Local occupational tax	0.5% to 2% of wages in about two dozen cities and towns, based on where the work is performed	When applicable
Qualifying pre-tax deductions	Certain retirement and Section 125 arrangements can reduce taxable payroll wages	When elected
Bonuses and other supplemental wages	Employers may withhold Alabama tax at a flat 5%; federal supplemental withholding is usually 22%	Yes
Alabama state unemployment insurance	Paid by the employer on the first $8,000 of each employee's wages	No

Alabama Income Tax Brackets for 2026

Alabama's brackets are among the narrowest in the country, so almost every full-time worker reaches the 5% rate. For paycheck withholding, employees who claim Married (M) on Form A-4 use the married brackets. Every other A-4 status, including Single, Head of Family, Married Filing Separately and zero exemptions, uses the single brackets. The brackets apply to taxable income, which is what's left after the deductions and exemptions in the next section.

Alabama individual income tax brackets used for 2026 withholding
Rate	Single, Head of Family, Married Filing Separately	Married Filing Jointly (A-4 status M)	Maximum tax in the bracket
2%	First $500 of taxable income	First $1,000 of taxable income	$10 single, $20 married
4%	$501 to $3,000	$1,001 to $6,000	$100 single, $200 married
5%	Over $3,000	Over $6,000	No cap

Alabama Standard Deduction, Personal Exemption and Dependent Exemption

Before the brackets apply, Alabama's withholding formula subtracts four items from annualized wages, in this order: the standard deduction, the federal income tax withheld, the personal exemption for your Form A-4 status, and the dependent exemption. The standard deduction shrinks as gross income rises, and it's the reason lower earners see noticeably less Alabama tax withheld. The amounts below come from the Alabama Department of Revenue's 2026 withholding tables.

2026 Alabama withholding deductions and exemptions by Form A-4 status
Form A-4 status	Personal exemption	Standard deduction at lower income	Phase-down range	Standard deduction at higher income
0 (no personal exemption)	$0	$3,000 up to $25,999	Minus $25 per $500 from $26,000 to $35,499	$2,500 at $35,500 and up
S (Single)	$1,500	$3,000 up to $25,999	Minus $25 per $500 from $26,000 to $35,499	$2,500 at $35,500 and up
MS (Married Filing Separately)	$1,500	$4,250 up to $12,999	Minus $88 per $250 from $13,000 to $17,749	$2,500 at $17,750 and up
H (Head of Family)	$3,000	$5,200 up to $25,999	Minus $135 per $500 from $26,000 to $35,499	$2,500 at $35,500 and up
M (Married Filing Jointly)	$3,000	$8,500 up to $25,999	Minus $175 per $500 from $26,000 to $35,499	$5,000 at $35,500 and up

Dependent exemption: Each dependent you list on Form A-4, other than your spouse, is worth $1,000 when annual gross wages are $50,000 or less, $500 when they're over $50,000 up to $100,000, and $300 when they're over $100,000. At the 5% rate, one dependent cuts Alabama withholding by about $50, $25 or $15 a year. That's far smaller than the federal child tax credit, so don't expect dependents to move your Alabama number much.

How Alabama Withholding Changes Take-Home Pay

These examples use the live Alabama withholding calculator on this page with Single federal filing status, Alabama A-4 status S, no dependents, no voluntary deductions and biweekly payroll. The final column shows how a hypothetical 1% local occupational tax would change net pay when that rate applies.

Illustrative Alabama withholding and take-home pay
Annual salary	Estimated Alabama withholding / year	Estimated annual net	Annual net with 1% local tax
$30,000	$1,175	$25,110	$24,810
$50,000	$2,069	$40,286	$39,786
$75,000	$3,127	$58,466	$57,716
$100,000	$4,102	$75,078	$74,078
$150,000	$6,023	$107,768	$106,268

Alabama Salary Calculator: Take-Home Pay Examples for 2026

Use these examples as a quick Alabama salary after taxes and take-home pay reference. They are generated from the same calculator engine above using biweekly payroll, no dependents, no voluntary deductions and no local occupational tax. Actual take-home pay changes with Form W-4 and Form A-4 elections, deductions and work location.

Illustrative Alabama take-home pay by annual salary
Annual salary	Single annual net	Single monthly equivalent	Married joint annual net	Married joint monthly equivalent
$30,000	$25,110	$2,092	$26,781	$2,232
$40,000	$32,691	$2,724	$34,679	$2,890
$50,000	$40,286	$3,357	$42,464	$3,539
$60,000	$47,881	$3,990	$50,192	$4,183
$75,000	$58,466	$4,872	$61,584	$5,132
$100,000	$75,078	$6,257	$80,572	$6,714
$120,000	$88,369	$7,364	$95,762	$7,980

How to Calculate Your Alabama Paycheck

An Alabama paycheck moves from gross wages to take-home pay through federal withholding, FICA, Alabama Form A-4 withholding and any payroll deductions that apply to the employee.

Calculate gross pay

For salary employees, divide annual salary by the number of pay periods. For hourly employees, multiply the hourly rate by regular hours and add overtime pay for the payroll period.

Apply qualifying pre-tax deductions

Review how pre-tax and post-tax deductions affect a paycheck. Traditional retirement contributions can reduce income-tax wages, while qualifying Section 125 benefits can also reduce wages subject to Social Security and Medicare.

Calculate federal withholding and FICA

Use federal Form W-4 for federal income-tax withholding, then calculate Social Security, Medicare and Additional Medicare withholding when the applicable wage thresholds are reached.

Calculate Alabama withholding and net pay

Apply Alabama Form A-4 information, the state withholding formula and any applicable local occupational tax, then subtract remaining post-tax deductions to reach take-home pay.

Alabama Withholding Worked Example: $60,000 Salary, Single, Biweekly

Here's the Alabama formula run by hand for the same paycheck shown at the top of this page: a $60,000 salary, federal filing status Single, Alabama Form A-4 status S, no dependents, no pre-tax deductions and biweekly pay. Federal withholding for this employee is $193.08 per paycheck, and because Alabama subtracts federal tax withheld, that number feeds straight into the state math. You can reproduce every line with the calculator above.

Step-by-step 2026 Alabama withholding on a $60,000 biweekly salary
Step	Calculation	Running total
1. Annualize gross wages	$2,307.69 per paycheck times 26	$60,000.00
2. Subtract the standard deduction	Status S with gross income of $35,500 or more: $2,500	$57,500.00
3. Subtract federal income tax withheld	$193.08 times 26 = $5,020.08	$52,479.92
4. Subtract the personal exemption	Status S: $1,500	$50,979.92
5. Subtract dependent exemptions	No dependents: $0	$50,979.92 taxable
6. Tax the first $500 at 2%	$500 times 2%	$10.00
7. Tax the next $2,500 at 4%	$2,500 times 4%	$110.00
8. Tax the rest at 5%	$47,979.92 times 5% = $2,399.00	$2,509.00 per year
9. Convert to the pay period	$2,509.00 divided by 26	$96.50 per paycheck

What it means for take-home pay and your Alabama paycheck after taxes: Gross pay of $2,307.69 minus $193.08 federal income tax, $143.08 Social Security, $33.46 Medicare and $96.50 Alabama tax leaves $1,841.57. If the same employee works inside Birmingham city limits, the 1% occupational tax takes another $23.08, so net pay drops to $1,818.50, or about $600 less a year. The effective Alabama rate here is 4.2% of gross pay, even though the top bracket is 5%.

Alabama Payroll Calculator: Taxes, Withholding and Deductions

An Alabama payroll calculator or Alabama paycheck tax calculator should account for both federal payroll taxes and Alabama's own withholding rules. Federal income-tax withholding is based primarily on Form W-4. Alabama withholding uses the separate Form A-4 and a state formula that annualizes wages before applying the applicable standard deduction, federal income-tax withholding, personal exemption, dependent exemption and Alabama tax brackets. After estimating the paycheck, use our pay stub generator when you need to turn the wage, tax and deduction figures into a payroll document.

At lower income levels, Alabama's withholding standard deduction starts at $3,000 for Single, $4,250 for Married Filing Separately, $5,200 for Head of Family and $8,500 for Married Filing Jointly, then phases down to $2,500 (or $5,000 for Married Filing Jointly) as annualized income increases. Form A-4 exemption status also matters: the withholding tables recognize zero exemption, Single, Married Filing Separately, Married and Head of Family elections, each with its own personal exemption.

Why Alabama Subtracts Federal Tax Before State Tax

Alabama is one of only a handful of states that allows a deduction for federal income tax, and its withholding formula follows the same rule. (Our guide to how much federal tax should be withheld in 2026 covers the federal side.) That has three practical effects on your paycheck. First, your effective Alabama rate is lower than the 5% headline: for the Single salaries in the tables above, it lands around 3.9% to 4.2% of gross pay. Second, anything that changes your federal withholding also nudges your Alabama withholding in the other direction: claiming the child tax credit in W-4 Step 3 lowers federal tax, which raises Alabama taxable income slightly. Third, extra federal withholding you request in W-4 Step 4(c) reduces the Alabama amount a little, and so does anything that raises federal withholding, while W-4 Step 4(b) deductions lower federal withholding and nudge Alabama up. It's a small interaction, but it's why two Alabama employees with the same salary can see different state withholding.

Alabama Withholding Calculator and Form A-4

Alabama Form A-4 is not interchangeable with federal Form W-4. The Alabama Department of Revenue instructs employers to obtain a completed A-4 from employees whose wages are subject to Alabama withholding. If an employee doesn't furnish Form A-4, Alabama instructs the employer to withhold using zero exemptions, which means no personal exemption and the highest withholding. If your Alabama withholding looks too high, a missing A-4 is the first thing to check.

The calculator's Alabama section lets you choose the A-4 exemption status, enter dependents and add extra Alabama withholding per paycheck. That makes it useful as an Alabama income tax calculator or Alabama withholding calculator when you want to see how a different A-4 election changes net pay.

Alabama Hourly Paycheck Calculator

The same tax calculation works for hourly pay. Enter the hourly rate, regular hours and overtime hours for the pay period, then select weekly, biweekly, semimonthly or monthly payroll. The Alabama hourly paycheck calculator also works as an Alabama hourly pay calculator, converting those earnings into gross pay before applying federal tax, FICA, Alabama withholding and deductions. If you are comparing annual salary with hourly compensation, use our salary-to-hourly calculator.

For example, an employee earning $20 per hour for 40 regular hours has $800 of regular gross pay before taxes and deductions. If overtime hours are entered, the calculator adds the overtime amount to gross wages before calculating the paycheck deductions. When you need a finished wage statement, our online pay stub generator can use the same payroll figures.

Alabama Overtime Pay and Taxes in 2026

Alabama's earlier paycheck-level overtime exemption ended in 2025. For calendar years 2026 through 2028, Alabama instead allows qualifying taxpayers to deduct the premium portion of overtime on the state income-tax return, limited to the lesser of the actual premium or $1,000 per taxpayer. Alabama Department of Revenue guidance states that this reporting does not change wages, withholding or taxes on Form W-2, so this paycheck calculator continues to treat current overtime wages as payroll wages when estimating withholding. For the federal side of the same question, see why overtime is still taxed on your 2026 paycheck.

Alabama Tax on Bonuses and Supplemental Pay

Bonuses, commissions paid separately and other supplemental wages can be withheld at flat rates. Alabama allows employers to withhold state tax on supplemental wages at 5%, and federal supplemental withholding is usually a flat 22%. On a $5,000 bonus, that's $1,100 federal, $310 Social Security, $72.50 Medicare and $250 Alabama tax, leaving $3,267.50. If you work in Birmingham, the 1% occupational tax takes another $50. The bonus is still ordinary income when you file, so the flat rates are withholding, not your final tax. Employers can also combine the bonus with regular wages and use the normal formula, which can produce a different number.

Working Across State Lines

Alabama doesn't have reciprocal agreements with any state. Alabama residents are taxed on all their income, so if you live in Alabama and work in Georgia or Mississippi, you'll usually have that state's tax withheld and then claim a credit on your Alabama return for tax paid to the other state. Florida and Tennessee don't tax wages, so Alabama residents working there generally still owe Alabama tax and may want to ask the employer to withhold it or add extra withholding themselves.

Nonresidents who work in Alabama owe Alabama tax on wages for work performed in the state. Starting in 2026, a 30-day safe harbor applies: an out-of-state employee who works in Alabama for 30 days or fewer during the year isn't subject to Alabama withholding, and the employer keeps withholding for the home state until the 31st day.

Alabama Minimum Wage and Overtime Rules

Alabama has no state minimum wage or overtime law, so covered employers follow the federal Fair Labor Standards Act. That means a minimum wage of $7.25 per hour and overtime of at least 1.5 times the regular rate for hours over 40 in a workweek for nonexempt employees. At $7.25 an hour for 40 hours, weekly gross pay is $290 before taxes.

Local Occupational Taxes in Alabama

Some Alabama work locations have a local occupational tax, usually 0.5% to 2% of wages. These taxes aren't administered by the Alabama Department of Revenue, so the city or county collects them under its own rules. They're generally tied to where the work is physically performed, so a remote employee working from home outside city limits usually isn't subject to the tax even if the employer's office is in the city. The calculator leaves the local rate at 0% by default. See the city-by-city table below and enter the rate that applies to your work location.

Employer Payroll Costs in Alabama

Some Alabama payroll costs never show up as employee deductions. Employers pay state unemployment insurance on the first $8,000 of each employee's annual wages, with new employers generally starting at 2.7%. They also pay the employer share of Social Security and Medicare and federal unemployment tax. Alabama withholding is reported on Form A-1 (quarterly) or Form A-6 (monthly for larger withholders), and the annual Form A-3 reconciliation and employee W-2s are due January 31. When year-end comes, our W-2 form generator can use the same wage and withholding totals.

Why Your Actual Alabama Paycheck May Differ

This calculator is a close estimate, not a copy of your employer's payroll run. Year-to-date wages, benefit elections, whether pre-tax deductions reduce the local occupational tax base, rounding by pay period and a 27th biweekly payday in some years can all move the result by a few dollars. If the gap is bigger than that, compare your Form A-4 status, dependents and extra withholding with what's on file with your employer.

Paycheck planning tip: Form W-4 controls federal withholding and Form A-4 controls Alabama withholding. Updating one form doesn't automatically update the other. Use the Form W-4 tool when you need the federal form, then review the Alabama A-4 information used by your employer.

Alabama Local Occupational Tax by City (2026)

Alabama occupational tax rates vary by municipality. These are the Alabama cities and towns commonly listed with an occupational tax on wages. The tax is generally based on where you physically work, not where you live, and it's usually figured on gross wages. Enter the rate in the calculator's local occupational tax field (for example, 1 for Birmingham). Rates and rules are set locally and can change, so confirm the current rate with the city before relying on it for payroll.

Alabama local occupational tax rates on wages
Rate	Cities and towns	Tax on a $60,000 salary per year
2%	Attalla, Gadsden, Glencoe, Rainbow City, Southside, Tuskegee	$1,200
1.5%	Opelika	$900
1%	Auburn, Bear Creek, Bessemer, Birmingham, Brilliant, Fairfield, Guin, Hackleburg, Haleyville, Hamilton, Leeds, Lynn, Midfield, Mosses, Shorter, Sulligent	$600
0.75%	Goodwater	$450
0.5%	Red Bay	$300
None	Huntsville, Montgomery, Mobile, Tuscaloosa and most other Alabama cities	$0

Birmingham vs. Huntsville: On the same $60,000 biweekly salary, an employee working in Birmingham takes home about $1,818.50 per paycheck, while one working in Huntsville takes home about $1,841.57. That's roughly $600 a year from the occupational tax alone. The occupational tax isn't deductible in the Alabama withholding formula, so it stacks on top of state withholding.

Alabama Paycheck Calculator by Pay Frequency

For payroll planning, this page also works as an Alabama payroll calculator for weekly, biweekly, semimonthly and monthly pay. Use it as an Alabama weekly paycheck calculator, Alabama biweekly paycheck calculator, Alabama semimonthly paycheck calculator or Alabama monthly paycheck calculator based on your payroll schedule. The annual salary stays the same, but the gross amount and withholding on each paycheck change as annual wages are divided across different numbers of pay periods. Alabama doesn't set a required pay frequency for private employers, so check your offer letter or pay stub for your schedule.

52Weekly$920.79 net

26Biweekly$1,841.57 net

24Semimonthly$1,995.04 net

12Monthly$3,990.09 net

1 Annual $47,881 net

Figures use a $60,000 salary, Single federal filing status, Alabama A-4 status S, no dependents, no local occupational tax and no voluntary deductions. Small annual differences can occur because payroll withholding is calculated and rounded by pay period.

How We Test This Alabama Paycheck Calculator

We don't just claim the math is right; we check it. Each scenario below was run through the live calculator on this page, then the Alabama withholding was worked out by hand with the Alabama Department of Revenue's 2026 formula: standard deduction, federal tax withheld, personal exemption, dependent exemption and the 2%, 4% and 5% brackets. Every result matched to the cent. All scenarios use biweekly pay, no local occupational tax and no other deductions unless the scenario says otherwise.

Alabama withholding test cases, checked September 23, 2026: every result matched to the cent (per biweekly paycheck, no dependents unless listed)
Scenario	Federal income tax	Alabama tax from calculator	Hand-checked with ALDOR formula	Take-home pay
$30,000, Single, S	$54.62	$45.20	$45.20	$965.76
$45,000, Head of Household, H, 1 dependent	$82.62	$68.37	$68.37	$1,447.37
$60,000, Single, S	$193.08	$96.50	$96.50	$1,841.57
$60,000, no Form A-4 on file (status 0)	$193.08	$99.38	$99.38	$1,838.69
$60,000, Single, S, $150 401(k) per paycheck	$175.08	$89.90	$89.90	$1,716.17
$80,000, Single, S	$337.31	$127.75	$127.75	$2,376.47
$120,000, Married Filing Jointly, M, 2 dependents	$386.15	$191.85	$191.85	$3,684.31
$20 an hour, 80 hours, Single, S	$108.15	$65.36	$65.36	$1,304.09

Update log: September 23, 2026: rebuilt the Alabama content against the ALDOR 2026 withholding booklet, added the bracket, exemption, worked example and local occupational tax tables, corrected the page's illustrative example to include Alabama withholding, and re-ran every test case above. We re-check this page when the IRS or the Alabama Department of Revenue publishes new withholding tables, and at least once a year each January.

2026 Tax Data This Calculator Uses

Here's every rate and limit behind the numbers above and where it comes from, so you can check them yourself. If a figure changes mid-year, it's updated here and in the calculator at the same time.

Tax rates and limits used by the Alabama paycheck calculator
Item	2026 value used	Source
Federal income tax withholding	Percentage method tables for 2026 Forms W-4	IRS Publication 15-T (2026)
Social Security	6.2% up to $184,500 in wages	IRS Publication 15 (2026)
Medicare	1.45% of all wages, plus 0.9% Additional Medicare withholding above $200,000	IRS Publication 15 (2026)
Alabama brackets	2%, 4% and 5%; married (M) brackets are double the single brackets	ALDOR withholding tables (January 2026)
Alabama standard deduction	$2,500 to $8,500 by A-4 status, phased down by gross income	ALDOR withholding tables (January 2026)
Alabama personal and dependent exemptions	$0, $1,500 or $3,000 by status; $1,000, $500 or $300 per dependent	ALDOR withholding tables (January 2026)
Alabama supplemental wages	Optional flat 5%	ALDOR withholding tables (January 2026)
Local occupational tax	Rate you enter (0% by default)	City or county that levies it

Spotted something that looks wrong? Tell us through the editorial contact form with the inputs you used, and we'll re-check the calculation. This page is written by Rachel Brooks and follows the research and review process described on our editorial team page. ePayStubs isn't affiliated with the IRS, the Alabama Department of Revenue or any city.

Alabama Paycheck Calculator FAQ

How much tax is taken out of a paycheck in Alabama?

It depends on gross wages, pay frequency, your federal Form W-4, your Alabama Form A-4, pre-tax deductions and whether a local occupational tax applies. Alabama's rates are 2%, 4% and 5%, but withholding isn't simply 5% of gross pay. For a $60,000 salary paid biweekly with A-4 status S and no dependents, Alabama withholding is about $96.50 per paycheck, or roughly 4.2% of gross pay, because the standard deduction, federal tax withheld and personal exemption come off first.

What form is used for Alabama paycheck withholding?

Alabama uses Form A-4, the Employee's Withholding Exemption Certificate. It's separate from federal Form W-4. Your A-4 exemption status, dependents and any additional Alabama withholding change the state amount taken from each paycheck. If you don't give your employer an A-4, Alabama tells the employer to withhold using zero exemptions.

How does the Alabama withholding calculator work?

The calculator annualizes your wages, subtracts the Alabama standard deduction, subtracts the federal income tax withheld, subtracts the Form A-4 personal and dependent exemptions, then applies the 2%, 4% and 5% brackets. The annual result is divided back into your pay period and combined with federal tax, FICA and your other deductions.

Can I deduct federal income tax on my Alabama return?

Yes. Alabama is one of the few states that lets you deduct federal income tax when figuring state taxable income. The withholding formula mirrors that by subtracting the federal tax withheld before the Alabama brackets apply, so a change to your W-4 also changes your Alabama withholding.

Does Birmingham have a city income tax?

Birmingham doesn't have a city income tax in the usual sense, but it does levy a 1% occupational tax on wages earned for work performed inside city limits. It's generally based on where you work, not where you live. Enter 1 in the calculator's local occupational tax field to include it.

Does Alabama have local payroll taxes?

Yes, in certain work locations. About two dozen Alabama cities and towns, including Birmingham, Bessemer, Gadsden, Opelika and Auburn, levy occupational taxes from 0.5% to 2% of wages. Huntsville, Montgomery, Mobile and Tuscaloosa don't have one. These taxes are administered locally, not by the Alabama Department of Revenue, so confirm the current rate with the city.

What is Alabama's tax rate on bonuses?

Alabama allows employers to withhold state income tax from bonuses and other supplemental wages at a flat 5%. Federal withholding on supplemental wages is usually a flat 22%, and Social Security and Medicare still apply. The bonus is taxed as ordinary income when you file, so the flat withholding is an estimate, not your final tax.

Do I pay Alabama tax if I live in another state and work in Alabama?

Generally yes. Wages for work performed in Alabama are Alabama-source income, and Alabama has no reciprocal agreements with other states. Starting in 2026, a 30-day safe harbor means an out-of-state employee who works in Alabama for 30 days or fewer in the year isn't subject to Alabama withholding. Alabama residents who work in another state generally claim a credit for income tax paid to that state.

Is overtime exempt from Alabama paycheck withholding in 2026?

No paycheck-level overtime exemption applies in 2026. For 2026 through 2028, Alabama allows a deduction for the overtime premium on the state income tax return, limited to the lesser of the actual premium or $1,000 per taxpayer. The Alabama Department of Revenue says this doesn't change wages, withholding or taxes shown on Form W-2.

What is Alabama's minimum wage in 2026?

Alabama doesn't have a state minimum wage law, so covered employers follow the federal minimum wage of $7.25 per hour. Overtime follows the federal Fair Labor Standards Act: at least 1.5 times the regular rate for hours over 40 in a workweek for nonexempt employees.

Do Alabama employees pay state unemployment tax?

No. Alabama state unemployment insurance is paid by the employer on the first $8,000 of each employee's wages, so it doesn't appear as an employee deduction on an Alabama pay stub.

Can I use this as an Alabama salary or hourly calculator?

Yes. Select Salary and enter annual pay, or select Hourly and enter the rate, regular hours and overtime hours. Choose weekly, biweekly, semimonthly or monthly payroll, and the calculator estimates gross pay, federal and Alabama withholding, FICA, any local occupational tax, deductions and take-home pay.

What is the difference between gross pay and take-home pay?

Gross pay is what you earn before taxes and deductions. Take-home or net pay is what's left after federal withholding, Social Security, Medicare, Alabama withholding, any local occupational tax and payroll deductions. See our gross pay vs. net pay guide for a detailed breakdown.

Alabama Payroll Resources

Alabama

Alabama Paystub Generator

Create an Alabama pay stub using wage, withholding and deduction information.

Federal form

Form W-4 Generator

Prepare federal employee withholding information used for paycheck calculations.

Tax form

W-2 Form Generator

Create a W-2 from wage and withholding information.

Next step

Ready to put your Alabama numbers on a pay stub?

Use the same gross pay, federal withholding, FICA, Alabama withholding and deduction details with our paystub generator to create an Alabama pay stub.

Build My Alabama Pay Stub

Written by: Rachel Brooks, Tax Forms and W-2 Content Specialist. Last updated: September 23, 2026. Checked against the Alabama Department of Revenue 2026 withholding tables and IRS Publication 15-T (2026).

Disclaimer: This calculator provides an educational payroll estimate and isn't tax or legal advice. Actual withholding depends on the employee's federal Form W-4, Alabama Form A-4, year-to-date wages, benefits, deductions, work location and employer payroll system.

Official sources: Alabama Department of Revenue 2026 Withholding Tax Tables and Instructions · IRS Publication 15-T (2026): Federal Income Tax Withholding Methods · IRS Publication 15 (2026): Employer's Tax Guide · Alabama Department of Revenue: Income Tax Withholding · U.S. Department of Labor: State Minimum Wage Laws. Alabama Department of Revenue guidance states that local occupational taxes are administered locally, so applicable rates and rules should be confirmed with the city or county administering the tax. Local occupational tax rates on this page reflect commonly published municipal rates.