What are Alabama's income tax brackets for 2024?

Alabama uses three graduated brackets. For single filers it is 2% on the first $500 of taxable income, 4% on the next $2,500, and 5% on everything above $3,000. Married-filing-jointly thresholds are doubled: 2% to $1,000, 4% to $6,000, and 5% above that.

Does Alabama have a flat income tax?

No. Alabama has a graduated income tax with three brackets topping out at 5%. Because the brackets are narrow, almost all earned income above a few thousand dollars is taxed at the 5% marginal rate, so the system behaves close to a flat 5% tax for typical earners.

What is the Alabama standard deduction?

The maximum 2024 standard deduction is about $2,500 for single filers and $7,500 for married filing jointly, but it phases down as adjusted gross income rises toward a floor near $2,000. This calculator applies the headline maximum; check Form 40 tables for your exact AGI band.

How do exemptions reduce my Alabama tax?

Alabama grants a personal exemption of $1,500 for single filers and $3,000 for joint filers, plus a dependent exemption of $1,000, $500, or $300 per dependent depending on your AGI. These are subtracted along with your deduction before the brackets are applied.

Is federal tax included in this calculator?

No. This tool computes only the Alabama state income tax. Federal income tax, FICA, and any local occupational taxes are separate. Use it to estimate the state-level line of your overall tax picture.

Alabama Income Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

Alabama levies a graduated state income tax with three brackets that top out at 5 percent. This calculator applies the official 2024 thresholds for your filing status, subtracts your deduction and exemptions, and shows the tax due along with your effective and marginal rates.

How it works

Alabama taxes income in three slices. For a single filer the first 500 dollars of taxable income is taxed at 2 percent, the next 2,500 dollars (up to 3,000) at 4 percent, and everything above 3,000 dollars at 5 percent. Married couples filing jointly use doubled thresholds: 2 percent to 1,000 dollars, 4 percent to 6,000 dollars, and 5 percent above that.

Taxable income is computed as:

taxable = AGI − deduction − (personal exemption + dependent exemptions)

The standard deduction maximum is roughly 2,500 dollars (single) or 7,500 dollars (joint) and phases down as AGI rises. The personal exemption is 1,500 dollars single or 3,000 dollars joint. Each dependent adds 1,000, 500, or 300 dollars depending on whether AGI is at or below 20,000 dollars, between 20,001 and 100,000 dollars, or above 100,000 dollars.

Example

A single filer with 50,000 dollars AGI and no dependents subtracts the 2,500 standard deduction and 1,500 personal exemption, leaving 46,000 dollars taxable. The tax is 2% of 500 (10 dollars) + 4% of 2,500 (100 dollars) + 5% of the remaining 43,000 (2,150 dollars) = roughly 2,260 dollars, an effective rate of about 4.5 percent.

Notes

Because Alabama’s brackets are narrow, most earners sit in the 5 percent marginal band. Alabama also allows a federal income tax deduction on Form 40 that this simplified tool does not model, so your actual state tax may be a little lower. Standard deduction and dependent exemption phase-outs vary by AGI; always confirm your figures against the current Form 40 instructions at revenue.alabama.gov.