Alabama Paycheck Calculator
Updated for 2026 tax year · figures checked on
Alabama withholds state income tax at 2%, 4% and 5%, after subtracting your federal income tax, and some cities add an occupational license fee, such as Auburn's 1%. This Alabama paycheck calculator, also a salary and take-home pay calculator, shows them next to federal income tax, Social Security and Medicare.
A single filer on a $60,000 salary, paid every two weeks, has a $2,307.69 paycheck and takes home about $1,841.57 before any local fee, or $47,881 a year.
Take-home pay per bi-weekly paycheck
$1,841.57
$47,880.82 a year from $59,999.94 gross pay (26 paychecks)
- Take-home 79.8%
- Federal income tax 8.4%
- Social Security 6.2%
- Medicare 1.4%
- State income tax 4.2%
| Item | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $59,999.94 |
| Federal income tax | −$193.08 | −$5,020.08 |
| Social Security | −$143.08 | −$3,720.08 |
| Medicare | −$33.46 | −$869.96 |
| State income tax | −$96.50 | −$2,509.00 |
| Take-home pay | $1,841.57 | $47,880.82 |
Estimates for informational purposes only, based on 2026 withholding rules. Your actual paycheck may differ. This is not tax advice. Report an issue
Alabama salary calculator: what your result means
Your result is take-home pay after federal taxes, Alabama income tax and, if you choose one, a local occupational fee. In the $60,000 example, federal income tax is about 8.4% of gross pay, Social Security and Medicare 7.7%, and Alabama income tax 4.2%.
Alabama subtracts your federal income tax before working out state tax, so a change that raises your federal withholding slightly lowers your Alabama withholding.
At $100,000 a year, take-home pay is about $2,887.63 every two weeks, or $75,078 a year. A $40,000 salary paid weekly comes to about $628.68 per paycheck.
How Alabama taxes your paycheck
| State income tax on wages | Graduated rates (see below) |
|---|---|
| State payroll programs withheld from pay | None |
- over $02%
- over $5004%
- over $3,0005%
| Schedule | Taxable wages over | Rate |
|---|---|---|
| Single, head of family, married filing separately | $0 | 2% |
| $500 | 4% | |
| $3,000 | 5% | |
| Married filing jointly | $0 | 2% |
| $1,000 | 4% | |
| $6,000 | 5% |
- Thresholds are yearly taxable income after the standard deduction, your federal income tax withheld, a personal exemption ($1,500 single, $3,000 married or head of family) and $1,000 per dependent at most incomes.
Employers annualize your pay and subtract a standard deduction (for single filers $3,000, phasing down to $2,500 at higher incomes; up to $8,500 for married couples), your yearly federal income tax withheld, a personal exemption of $1,500 ($3,000 if married or head of family) and an amount for each dependent. The rest is taxed at 2%, then 4%, and 5% above the first $3,000 for single filers. Alabama excludes cafeteria plan, 401(k), 403(b) and 457 deductions from wages and allows HSA contributions like federal law.
Local occupational license fees
Some Alabama cities and counties charge an occupational license fee on pay for work done there, withheld from gross pay with no deductions. The state doesn't administer or publish a list of these fees. The calculator offers Auburn, Opelika and Leeds; Birmingham and other cities with fees aren't included yet, so leave the picker on "No local tax / not sure" if yours isn't listed.
Things to know about Alabama paychecks
- Federal tax lowers Alabama tax. Alabama withholding subtracts your yearly federal income tax withholding before applying state rates. (Source: Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026))
- The A-4 is required. The federal W-4 can't be used for Alabama; without a Form A-4, employers withhold with zero exemptions. (Source: Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026))
- Seven days to report new hires. Alabama employers must report new hires within seven days. (Source: US Department of Health and Human Services, Office of Child Support Services, State New Hire Reporting Requirements)
Federal taxes on every paycheck
Every US paycheck has the same three federal deductions, whichever state you work in. Together, Social Security and Medicare are called FICA (Federal Insurance Contributions Act) taxes.
- Federal income tax withholding. Withholding is tax your employer takes out of each paycheck and sends to the IRS on your behalf. The amount depends on your pay and your Form W-4, using the IRS method in Publication 15-T. It is an estimate of your yearly tax; you settle the difference when you file your return.
- Social Security. 6.2% of your wages, up to the wage base of $184,500 for the year. The wage base is the most pay that Social Security tax applies to.
- Medicare. 1.45% of all your wages, with no limit. Once your pay from one employer passes $200,000 in a year, your employer also withholds an extra 0.9% Additional Medicare Tax on the amount above it.
Source: IRS Publication 15 (2026), (Circular E), Employer's Tax Guide.
Ways to change your paycheck
To change Alabama withholding, give your employer a new Form A-4. You choose a personal exemption (0, single, married filing separately, married or head of family) and list your dependents, and you can ask for extra withholding.
Bonuses and other supplemental pay can be withheld at a flat 5%.
- Update your Form W-4. Claiming dependents, checking the Step 2 box or asking for extra withholding changes how much federal tax comes out of each paycheck. The IRS Tax Withholding Estimator can help you fill it in.
- Pre-tax deductions. Money you put into a traditional 401(k), an HSA or employer health insurance comes out before federal income tax, so your take-home pay drops by less than the amount you save.
- Bonuses. Employers often withhold federal tax on a bonus paid separately at a flat rate. Add a bonus under More options to see it.
Alabama payroll rules
- Minimum wage
- Alabama has no state minimum wage law. Employers covered by the federal Fair Labor Standards Act must pay the federal minimum of $7.25 an hour. (Source: US Department of Labor, State Minimum Wage Laws (updated July 1, 2026))
- Overtime
- Alabama has no state overtime law; under federal law, covered non-exempt employees earn time-and-a-half after 40 hours in a workweek. (Source: US Department of Labor, Wage and Hour Division, Overtime Pay)
- How often you must be paid
- The US Department of Labor lists no general state payday requirement for Alabama. (Source: US Department of Labor, State Payday Requirements (rev. January 1, 2023))
For employers in Alabama
- State unemployment tax
- Employers pay unemployment tax on the first $8,000 of each employee's wages, with new employers at 2.70%. (Source: US Department of Labor, Significant Provisions of State Unemployment Insurance Laws, January 2026)
- New hire reporting
- Employers must report new hires within seven days of hiring. (Source: US Department of Health and Human Services, Office of Child Support Services, State New Hire Reporting Requirements)
- State income tax withholding
- Employers register with the Alabama Department of Revenue and must get a completed Form A-4 from each employee; the federal W-4 isn't an acceptable substitute. (Source: Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026))
Out-of-state employees who work in Alabama for 30 or fewer days a year are generally exempt from Alabama withholding under the 30-day safe harbor rule.
Compare Alabama with neighboring states
| Per paycheck | |||
|---|---|---|---|
| Florida | $0 | $50,390 | $1,938.07 |
| Tennessee | $0 | $50,390 | $1,938.07 |
| Mississippi | $1,664 | $48,726 | $1,874.07 |
| Georgia | $2,246 | $48,144 | $1,851.70 |
| Alabama | $2,509 | $47,881 | $1,841.57 |
Paycheck calculators for neighboring states: Florida, Georgia, Mississippi, Tennessee.
Most-searched state paycheck calculators
Alabama paycheck FAQ
What are Alabama's withholding rates in 2026?
Why does my federal tax lower my Alabama tax?
Does Alabama have city income taxes?
Do I need an Alabama W-4?
What is the minimum wage in Alabama?
Is overtime taxed more in Alabama?
Sources and methodology
Every rate and limit on this page comes from the official sources below, checked on . Read how our paycheck calculator works for the calculation order and its limits.
- Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026)
- Alabama Department of Revenue, Form A-4 Employee's Withholding Tax Exemption Certificate (Rev. 4/2025)
- Alabama Department of Revenue, FAQ: Does Alabama allow an adjustment to a Health Savings Account (HSA) like the IRS?
- US Department of Labor, State Minimum Wage Laws (updated July 1, 2026)
- US Department of Labor, Wage and Hour Division, Overtime Pay
- US Department of Labor, State Payday Requirements (rev. January 1, 2023)
- US Department of Labor, Significant Provisions of State Unemployment Insurance Laws, January 2026
- US Department of Health and Human Services, Office of Child Support Services, State New Hire Reporting Requirements
- City of Auburn, Occupational License (1% of compensation, Ordinance 416 as amended)
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- IRS Form W-4 (2026), Employee's Withholding Certificate
- IRS Publication 15 (2026), (Circular E), Employer's Tax Guide
- IRS Publication 15-B (2026), Employer's Tax Guide to Fringe Benefits
- Social Security Administration, Cost-of-Living Increase and Other Determinations for 2027 (Federal Register, published 2026-10-26)