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Alabama taxes and pay, 2026

The numbers that decide what you keep in Alabama, and a calculator for each one. Updated November 15, 2026.

Alabama at a glance2026
State income tax2%–5%
State tax on a $60,000 salary$2,509
Local income taxesIn some cities or counties
Take-home pay on $60,000$47,881
Rank for take-home pay41st of 51
Minimum wage$7.25 an hour (federal)

Alabama calculators

Alabama paycheck calculatorAlabama income tax calculatorAlabama minimum wage

How Alabama taxes wages

Taxable income (single)Rate
$0 – $5002%
$500 – $3,0004%
Over $3,0005%

Rules that change the math in Alabama

The standard deduction steps down. It is $3,000 up to $25,999 of income, then drops $25 for each $500 of income above that, down to a floor of $2,500.

Alabama lets you deduct federal income tax before applying its own rates. That lowers the state bill for most workers.

Take-home pay in Alabama by salary

SalaryTake-home / yearPer month
$40,000$32,691$2,724
$60,000$47,881$3,990
$80,000$61,789$5,149
$100,000$75,079$6,257
$150,000$107,768$8,981

Alabama and its neighbors

StateIncome taxTake-home on $60,000Minimum wage
Alabama2%–5%$47,881$7.25
Floridanone$50,390$15.00
Georgia4.99%$48,145$7.25
Mississippi4%$48,722$7.25
Tennesseenone$50,390$7.25

Convert your pay

$15 an hour$18 an hour$20 an hour$25 an hour$30 an hour$40 an hour$50,000 a year$75,000 a year$100,000 a year

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