Alabama Income Tax Brackets 2026
What are the Alabama income tax brackets for 2026?
Alabama uses 3 graduated brackets for 2026, from 2% on the first dollars of taxable income up to a top rate of 5%. After the state's standard deduction of $3,000 single ($8,500 joint), a single filer on $75,000 pays $3,485 of Alabama income tax.
Alabama taxes income through 3 graduated brackets in 2026, topping out at 5%. The first bracket covers taxable income up to $500, and the top rate does not bite until taxable income passes $3,000, which is why the worked example below matters more than the headline rate.
Updated October 29, 2026
Alabama brackets for single filers, 2026
Rates apply to Alabama taxable income: gross pay minus the standard deduction and any personal exemption. In Alabama the schedule fills from the bottom up: the first $500 of taxable income pays 2%, and only the income above each threshold pays the next rate up.
| Taxable income (single) | Rate |
|---|---|
| $0 to $500 | 2% |
| $501 to $3,000 | 4% |
| $3,001 and up | 5% |
Alabama brackets for married filing jointly, 2026
| Taxable income (joint) | Rate |
|---|---|
| $0 to $1,000 | 2% |
| $1,001 to $6,000 | 4% |
| $6,001 and up | 5% |
Standard deduction and exemption in Alabama
The 2026 standard deduction is $3,000 for single filers and $8,500 for married filing jointly. Alabama also allows a personal exemption of $1,500 for single filers and $3,000 for joint filers, which comes off taxable income alongside the standard deduction. In Alabama, that means the first $4,500 of a single filer's pay is taxed at zero before the schedule even starts.
Worked example: the brackets on a $75,000 salary
A single filer earning $75,000 in Alabama first removes the standard deduction and personal exemption, leaving $70,500 of taxable income. Each bracket then takes its slice:
| Bracket range | Income in bracket | Rate | Tax |
|---|---|---|---|
| $0 to $500 | $500 | 2% | $10 |
| $501 to $3,000 | $2,500 | 4% | $100 |
| $3,001 and up | $67,500 | 5% | $3,375 |
Total Alabama income tax: $3,485, an effective rate of 4.65% of gross pay. The marginal rate, the rate on the next dollar Alabama taxes, is 5%; a raise that crosses into that bracket pays 5% only on the dollars above the line, never on the whole salary.
Alabama income tax on common salaries (single filer)
| Gross salary | Alabama income tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $1,735 | 4.34% | 5% |
| $50,000 | $2,235 | 4.47% | 5% |
| $75,000 | $3,485 | 4.65% | 5% |
| $100,000 | $4,735 | 4.74% | 5% |
| $150,000 | $7,235 | 4.82% | 5% |
How Alabama compares with other states
How Alabama compares: its top rate of 5% ranks 23rd highest among the 42 taxing jurisdictions for 2026, and the $3,485 owed on a $75,000 salary ranks 9th highest, between Virginia ($3,498) and New York ($3,453).
The shape of the schedule matters as much as the rates. Alabama's top rate only starts at taxable income above $3,000, so a $75,000 salary never sniffs it: the highest rate actually touched is 5%, and the top slice of the example above contributes $3,375, about 97% of the total bill. The other 3% is spread across the lower 2 brackets.
Joint filers in Alabama get thresholds that are exactly double the single ones, so two earners who marry face no bracket penalty on the same combined income. The joint standard deduction of $8,500 is likewise double the single $3,000.
To turn these figures into an actual paycheck, use the Alabama income tax calculator for any salary, or the Alabama take-home pay calculator to see the same salary after federal tax and FICA as well. Per pay period, the paycheck calculator breaks the Alabama result down further, and the state tax brackets hub lines up all 50 states and DC side by side.
Frequently asked questions
What is the top income tax rate in Alabama for 2026?
The top marginal rate in Alabama is 5%, and it applies only to taxable income above $3,000 for single filers. Every dollar below that line pays less, starting at 2% on the first slice.
How many tax brackets does Alabama have?
Alabama has 3 brackets for 2026, running from 2% on the first slice of taxable income to 5% at the top. Joint filers use a wider schedule, with a standard deduction of $8,500 instead of $3,000.
What is the standard deduction in Alabama for 2026?
The standard deduction is $3,000 for single filers and $8,500 for married filing jointly. A personal exemption of $1,500 single and $3,000 joint also applies.
How much Alabama income tax is owed on $75,000?
A single filer earning $75,000 pays $3,485 of Alabama income tax for 2026 in this model, an effective rate of 4.65%, even though the top bracket reached is 5%.