Paycheck for Alabama (2026)

Last updated: January 15, 2026

Alabama (AL) Key Facts

State Income Tax

5%

State Sales Tax

4%

Pay Frequency

Bi-weekly (most common)

Federal Withholding

Based on W-4 elections

How This Calculator Works in Alabama

This calculator estimates your net paycheck in Alabama accounting for federal taxes, FICA, and state income tax up to 5%. Enter salary and pay frequency to see take-home pay.

Alabama Overview

Paychecks in Alabama are subject to federal income tax, FICA (Social Security and Medicare), and state income tax at up to 5%. Alabama withholds state income tax at rates up to 5% from employee paychecks.

How Alabama Compares

Alabama's 5% state income tax means smaller paychecks compared to Florida (0%) and Georgia (5.39%). Differences compound over a full year.

StateTop RateNotes
Florida0%Florida has an income tax rate of 0%.
Georgia5.39%Georgia has an income tax rate of 5.39%.
Mississippi4.7%Mississippi has an income tax rate of 4.7%.

Alabama's income tax rate of 5% compares to a national average of approximately 5.04%. This is below the national average.

Tips for Alabama Residents

  • 1Alabama withholds state income tax at up to 5% from each paycheck, in addition to federal taxes.
  • 2Alabama withholds state income tax at rates up to 5% from employee paychecks.
  • 3Maximize pre-tax contributions to 401(k), HSA, and FSA accounts to reduce both federal and state taxable income on every paycheck.
  • 4Review your state W-4 or withholding form annually, especially after salary changes, marriage, or a new dependent.
  • 5Compare net pay across pay frequencies: bi-weekly (26 checks) vs. semi-monthly (24 checks) to plan your budget accurately.

Frequently Asked Questions

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