Alabama Income Tax Brackets 2026

Alabama uses a progressive income tax system with 3 brackets.

State Tax

5.0%

Top marginal rate

COL Index

89

Below national avg

Median Income

$59,609

Household

Brackets

3

Progressive

Alabama Tax Brackets

Income RangeMarginal Rate
$0$5002.00%
$500$3,0004.00%
$3,000and above5.00%

Alabama State Tax at Different Income Levels

Gross IncomeState TaxEffective Rate
$50,000$2,4604.92%
$75,000$3,7104.95%
$100,000$4,9604.96%
$150,000$7,4604.97%
$200,000$9,9604.98%
$300,000$14,9604.99%

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Frequently Asked Questions about Alabama Taxes

Does Alabama have state income tax?

Alabama has a progressive income tax system with rates ranging from 2.0% to 5.0% for 2026.

How much is federal tax in Alabama?

Federal income tax in Alabama is the same as in all other US states. For 2026, the federal brackets range from 10% to 37%, depending on your taxable income and filing status.

What is the cost of living in Alabama?

The cost of living in Alabama has an index of 89, where 100 is the national average. This means Alabama is 11% cheaper than the average US state.