Alabama State Income Tax Overview
Alabama (AL) state income tax rate: 5.0% (graduated rate system)
Alabama Income Tax Brackets (2026)
2% on first $500 (single); 4% on $501–$3,000; 5% on income above $3,000
Alabama has one of the lower top marginal rates at 5%, but the brackets are narrow, meaning many residents reach the top rate quickly. Alabama also allows a deduction for federal income taxes paid.
Median Household Income in Alabama
The median household income in Alabama is $52,035. Alabama's median household income is below the national median. Most filers fall in the 4–5% state bracket range.
How to Use This Calculator for Alabama
- Enter your gross income and filing status
- The calculator applies Alabama's graduated income tax rate of up to 5.0%
- Subtract your standard deduction and any applicable credits
- Review your estimated state and federal tax liability
Frequently Asked Questions
What is the Alabama state income tax rate?
Alabama has a graduated income tax with a top rate of 5.0%. 2% on first $500 (single); 4% on $501–$3,000; 5% on income above $3,000.
How does Alabama's income tax compare to the national average?
Alabama's top income tax rate of 5.0% applies to a graduated rate system. Alabama has one of the lower top marginal rates at 5%, but the brackets are narrow, meaning many residents reach the top rate quickly. Alabama also allows a deduction for federal income taxes paid.
What is the median household income in Alabama?
The median household income in Alabama is $52,035. Alabama's median household income is below the national median. Most filers fall in the 4–5% state bracket range.
Is this state income tax calculator free to use for Alabama?
Yes, this state income tax calculator is 100% free with no signup required. It includes Alabama-specific tax rates and calculates your estimated state and federal tax liability instantly.