PaycheckState

Alabama Paycheck Calculator

Updated for the 2026 tax year · Formula unchanged from 2025; the overtime exemption ended June 30, 2025.

Quick answer

How much is take-home pay on $60,000 in Alabama?

A single filer earning $60,000 in Alabama takes home about $1,841.57 per biweekly paycheck in 2026, or $47,880.92 a year. That is an effective tax rate of 20.2% across federal, FICA, and state withholdings.

SalaryTake-home (year)Effective rate
$40,000$32,690.9818.3%
$60,000$47,880.9220.2%
$80,000$61,788.4422.8%
$100,000$75,078.4624.9%

Single filer, paid biweekly, standard W-4, no pre-tax deductions.

Alabama withholds at 2%, 4%, and 5% for 2026 after subtracting all federal income tax withheld, a standard deduction of $2,500 to $8,500, a personal exemption of $1,500 or $3,000, and $300 to $1,000 per dependent. About 25 cities, including Birmingham, add a local occupational tax; enter yours in the calculator. Figures follow IRS Publication 15-T and the Alabama Department of Revenue withholding booklet, revised January 2026.

How Alabama paycheck taxes work

Four tax lines come out of most Alabama paychecks: federal income tax, Social Security (6.2% up to $184,500), Medicare (1.45%), and Alabama state withholding. If you work in one of about 25 cities with an occupational tax, such as Birmingham at 1%, a fifth line appears for the city. Alabama has no disability, paid-leave, or long-term care premium for employees, so the rest of your stub is your own elections: 401(k), health premiums, HSA, and similar benefits.

The Department of Revenue formula annualizes your pay and subtracts four things. First, a standard deduction of $3,000 single, $8,500 married, or $5,200 head of family, which steps down for every $500 of wages over $25,999 and settles at $2,500, $5,000, or $2,500 from $35,500 up. Second, 100% of the federal income tax withheld from your pay. Third, a personal exemption of $1,500 single or $3,000 married or head of family. Fourth, $1,000 per dependent up to $50,000 of wages, $500 up to $100,000, and $300 above.

What remains is taxed at 2% on the first $500, 4% on the next $2,500, and 5% above $3,000; married filing jointly doubles the bands to $1,000, $5,000, and $6,000. The federal subtraction is the step most calculators skip. This one computes your federal income tax withholding first, annualizes it, and removes the whole amount from Alabama wages, with no cap. So anything that lowers federal withholding, such as a 401(k) contribution or a W-4 credit, raises Alabama withholding a little, and extra federal withholding lowers it.

About 25 Alabama cities levy an occupational tax on wages earned inside the city, withheld by your employer whether or not you live there; Birmingham charges 1%, and rates run 0.5% to 2%. This calculator adds it only if you type a rate into the Alabama occupational tax field. Bonuses paid separately may be withheld at a flat 5%, which this site's bonus calculator applies. Alabama has no reciprocity agreements; under Act 2025-334, nonresidents who work in Alabama 30 days or fewer in a year are exempt from withholding.

Alabama tax rates (2026)

Alabama withholding on annualized wages after the adjustments below.

Standard deduction$3,000 single · $8,500 married jointly · $5,200 head of household, stepping down above $25,999 to $2,500 / $5,000 / $2,500
Federal tax withheldSubtracted in full
Personal exemption$1,500 single · $3,000 married jointly
Dependent exemption$1,000 each up to $50,000 in wages · $500 each up to $100,000 in wages · $300 above
Alabama occupational taxSome cities charge 0.5% to 2% on wages earned there, such as Birmingham at 1%. Enter your rate in the calculator.
Taxable wagesWithholding
$0 – $5002.00%
$500 – $3,000$10.00 + 4.00% of excess over $500
Over $3,000$110.00 + 5.00% of excess over $3,000

Example: $60,000 in Alabama

Single filer, paid biweekly, standard W-4, no pre-tax deductions.

Per paycheckPer year
Gross pay$2,307.69$60,000.00
Federal income tax$193.08$5,020.08
Social Security$143.08$3,720.00
Medicare$33.46$870.00
Alabama income tax$96.50$2,509.00
Take-home pay$1,841.57$47,880.92

Alabama paycheck FAQ

How much is taken out of a paycheck in Alabama?

Federal income tax, Social Security at 6.2%, Medicare at 1.45%, and Alabama withholding of 2% to 5% on annualized wages after the standard deduction, your full federal withholding, a $1,500 or $3,000 personal exemption, and $300 to $1,000 per dependent. In about 25 cities, including Birmingham at 1%, a local occupational tax comes out as well. The quick answer above shows a single filer on $60,000; the calculator recomputes for your pay, A-4 status, dependents, and city rate.

What are the Alabama income tax rates for 2026?

2% on the first $500 of taxable income, 4% on the next $2,500, and 5% above $3,000 for single and head of family filers; married filing jointly uses $1,000, $5,000, and $6,000. The rates and the withholding formula are unchanged from 2025. Because the bands are so narrow, nearly all wage income lands in the 5% band once the deductions, exemptions, and federal tax subtraction are taken.

Is overtime still tax-free in Alabama in 2026?

No. Alabama's overtime income tax exemption ended June 30, 2025, so every 2026 overtime dollar is withheld like regular pay, and calculators that still exclude overtime from Alabama tax are out of date. Act 2026-604 adds a deduction of up to $1,000 for the overtime premium on your 2026 through 2028 Alabama returns; it is claimed at filing and has no effect on the paycheck.

Why does Alabama subtract federal income tax from my wages?

Alabama allows a deduction for federal income tax paid, with no cap, and the withholding formula mirrors it paycheck by paycheck: your employer annualizes the federal income tax withheld and removes 100% of it from Alabama wages before applying the 2%, 4%, and 5% rates. This calculator does the same, which is why raising your federal withholding lowers the Alabama line slightly, and a 401(k) contribution that cuts federal tax nudges Alabama withholding up.

Does Birmingham have a city income tax on paychecks?

Yes. Birmingham levies a 1% occupational tax on wages earned inside the city, withheld by your employer whether you live in Birmingham or commute in. About 25 Alabama cities have a similar tax, at rates from 0.5% to 2%, each administered by the city itself. Enter the rate for the city where you work in the Alabama occupational tax field; leave it at 0 if your workplace has none.

How many exemptions should I claim on the Alabama A-4?

Write S for single or MS for married filing separately ($1,500 exemption), M for married claiming both spouses' exemptions ($3,000), or H for head of family ($3,000), then enter your dependents on the line below. Each dependent removes $1,000 of annual wages from Alabama tax up to $50,000 of wages, $500 up to $100,000, and $300 above. Claiming 0 withholds the most. This calculator applies the S, M, and H schedules, and runs MS on the single schedule.

Sources

Rates verified against these documents on September 14, 2026.

  1. Alabama DOR, Withholding Tax Tables and Instructions for Employers and Withholding Agents, revised January 2026
  2. Alabama DOR, Overtime Premium Deduction (Act 2026-604) and Overtime Exemption pages

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