Your Pay Details
Your Take-Home Pay
| Gross Pay | $0 |
| Federal Income Tax | –$0 |
| Social Security (6.2%) | –$0 |
| Medicare (1.45%) | –$0 |
| Alabama State Tax | –$0 |
| Take-Home Pay | $0 |
| ⚠ Local & City Income Tax may apply | |
Local & City Taxes in Alabama
Several Alabama cities and counties levy an occupational tax on wages. Birmingham charges 1%, and Jefferson County (which includes Birmingham) also charges 1% — meaning Birmingham residents can owe up to 2% in combined local taxes on the same wages.
Other cities with local occupational taxes include Gadsden (2%), Macon County (1%), and a handful of smaller municipalities. Rates generally range from 0.5% to 2%. These taxes apply to wages earned within the jurisdiction, so non-residents who work in these cities may also owe them.
The calculator on this page reflects Alabama state tax only. If you work in Birmingham, Jefferson County, or another taxing municipality, your actual take-home pay will be lower.
How Your Alabama Paycheck Works
Alabama has a graduated income tax with three brackets ranging from 2% to 5%. The state also offers a standard deduction that varies by filing status.
Federal Income Tax
Calculated using 2025 federal brackets from 10% to 37%, applied to taxable income after the standard deduction.
Social Security
6.2% of gross pay up to $176,100. Funds the Social Security retirement and disability program.
Medicare
1.45% of all gross pay. High earners over $200K pay an additional 0.9% surtax.
Alabama State Tax
Alabama uses graduated income tax brackets ranging from 2%–5%. Lower incomes pay lower rates.
2025 Alabama State Tax Brackets
Here are the Alabama income tax brackets for single filers in 2025.
| Rate | Taxable Income (Single) |
|---|---|
| 2.00% | $0 – $500 |
| 4.00% | $501 – $3,000 |
| 5.00% | $3,001+ |
Major Cities in Alabama
Whether you live in Huntsville, Birmingham, or anywhere else in Alabama, state tax rates apply uniformly — your city does not change your paycheck calculation. Local taxes and cost of living vary by city, as shown below.
* Population from U.S. Census estimates. Home prices and rent are 2023–2024 estimates. Local income tax applies to residents unless noted.
Frequently Asked Questions
What is Alabama's state income tax rate?
Alabama has graduated income tax rates ranging from 2%–5%. The rate you pay depends on your taxable income after deductions.
How much of my paycheck goes to taxes in Alabama?
A single filer earning $55,000/year in Alabama typically pays an effective state rate well below the top bracket rate. Combined with federal taxes and FICA, total deductions typically run 25–33% of gross pay.
What is FICA and how much is it?
FICA covers Social Security (6.2% up to $176,100) and Medicare (1.45% with no cap). Together that is 7.65% of gross pay, paid by every US worker regardless of state.
How do pre-tax deductions like a 401(k) reduce my taxes?
Pre-tax deductions reduce both your federal and state taxable income. A $5,000 annual 401(k) contribution can save hundreds in combined federal and state taxes.
How accurate is this calculator?
This calculator uses 2025 federal and state tax brackets. Results are estimates — your actual paycheck may vary based on W-4 elections, employer deductions, and local taxes not included here.