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 Range | Marginal Rate |
|---|---|
| $0 — $500 | 2.00% |
| $500 — $3,000 | 4.00% |
| $3,000 — and above | 5.00% |
Alabama State Tax at Different Income Levels
| Gross Income | State Tax | Effective Rate |
|---|---|---|
| $50,000 | $2,460 | 4.92% |
| $75,000 | $3,710 | 4.95% |
| $100,000 | $4,960 | 4.96% |
| $150,000 | $7,460 | 4.97% |
| $200,000 | $9,960 | 4.98% |
| $300,000 | $14,960 | 4.99% |
Calculate Your Exact Alabama Taxes
See your full federal + state + FICA breakdown with our interactive calculator.
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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.