Alabama Paycheck Calculator: How Much You Take Home After Taxes
Alabama uses a progressive state income tax with relatively modest top rates compared to many other states, plus a notable feature: it allows a deduction for federal income taxes paid, which lowers state taxable income further than most states allow. What comes out of an Alabama paycheck Federal income tax — based on income, filing status, and W-4 elections Alabama state income tax — a progressive system with a federal tax deduction that reduces state taxable income Social Security tax — 6.2% on wages up to $184,500 for 2026 Medicare tax — 1.45% on all wages, no cap Worked example: $55,000 salary in Alabama Single filer, biweekly pay, no pre-tax deductions: Federal standard deduction (2026): $16,100 Federal taxable income: $38,900 Federal tax owed: 10% on $12,400 ($1,240) plus 12% on $26,500 ($3,180) = $4,420 Social Security: 6.2% × $55,000 = $3,410 Medicare: 1.45% × $55,000 = $797.50 Alabama state income tax: typically $1,300–$1,700 at this income level, depending...