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How to Calculate 2018 Alabama State Income Tax by Using State Income Tax Table

1. Find your income exemptions

2. Find your pretax deductions, including 401K, flexible account contributions ...

3. Find your gross income

4. Check the 2018 Alabama state tax rate and the rules to calculate state income tax

5. Calculate your state income tax step by step

6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed.

Learn more about the in house payroll tax solution for Alabama small businesses here.
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Alabama State Tax Tables

Tax rate used in calculating Alabama state tax for year 2018

State Abbreviation:

AL

State Tax Withholding State Code:

01

Acceptable Exemption Form:

A-4

Basis For Withholding:

State Exemptions

Acceptable Exemption Data:

S, N, M, H / Number of Exemptions

TSP Deferred:

Yes

Special Coding:

Determine the Total Number Of Allowances Claimed field as follows:
First Position - S = Single; N = Married, Filing Separate Returns; M = Married; H = Head of Household.
Second and Third Positions - Enter the total number of allowances claimed. If less than 10, precede with a zero.

Additional Information:

None




Withholding Formula >(Alabama Effective 2018)<

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment (s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages times >26< to obtain the gross annual wages.
  5. Determine the personal exemption by applying the following guideline and subtract this amount from the gross wages to compute the taxable income.

    Tax Withholding Table
    Zero or Single
    (Filing Status S)
    If the Amount of
    Taxable Income Is:
    The Standard Deduction
    Amount Is:
    Over: But Not
    Over:
     

  6. $0
    >20,499.99
    2,500
    20,499.99
    20,999.99
    2,475
    20,999.99
    21,499.99
    2,450
    21,499.99
    21,999.99
    2,425
    21,999.99
    22,499.99
    2,400
    22,499.99
    22,999.99
    2,375
    22,999.99
    23,499.99
    2,350
    23,499.99
    23,999.99
    2,325
    23,999.99
    24,499.99
    2,300
    24,499.99
    24,999.99
    2,275
    24,999.99
    25,499.99
    2,250
    25,499.99
    25,999.99
    2,225
    25,999.99
    26,499.99
    2,200
    26,499.99
    26,999.99
    2,175
    26,999.99
    27,499.99
    2,150
    27,499.99
    27,999.99
    2,125
    27,999.99
    28,499.99
    2,100
    28,499.99
    28,999.99
    2,075
    28,999.99
    29,499.99
    2,050
    29,499.99
    29,999.99
    2,025
    29,999.99 <
    and over
    2,000


    Married - Filing Separately
    (Filing Status N)

    If the Amount of
    Taxable Income Is:

    The Standard Deduction
    Amount Is:

    Over:
    But Not Over:
    $ 0
    >$ 10,249.99
    $ 3,750
    10,249.99
    10,499.99
    3,662
    10,499.99
    10,749.99
    3,574
    10,749.99
    10,999.99
    3,486
    10,999.99
    11,249.99
    3,398
    11,249.99
    11,499.99
    3,310
    11,499.99
    11,749.99
    3,222
    11,749.99
    11,999.99
    3,134
    11,999.99
    12,249.99
    3,046
    12,249.99
    12,499.99
    2,958
    12,499.99
    12,749.99
    2,870
    12,749.99
    12,999.99
    2,782
    12,999.99
    13,249.99
    2,694
    13,249.99
    13,499.99
    2,606
    13,499.99
    13,749.99
    2,518
    13,749.99
    13,999.99
    2,430
    13,999.99
    14,249.99
    2,342
    14,249.99
    14,499.99
    2,254
    14,499.99
    14,749.99
    2,166
    14,749.99
    14,999.99
    2,078
    14,999.99<
    and over
    2,000

    Married
    (Filing Status M)

    If the Amount of
    Taxable Income Is:

    The Standard Deduction
    Amount Is:

    Over
    But Not Over:
    $ 0
    >$ 20,499.99
    $ 7,500
    20,499.99
    20,999.99
    7,325
    20,999.99
    21,499.99
    7,150
    21,499.99
    21,999.99
    6,975
    21,999.99
    22,499.99
    6,800
    22,499.99
    22,999.99
    6,625
    22,999.99
    23,499.99
    6,450
    23,499.99
    23,999.99
    6,275
    23,999.99
    24,499.99
    6,100
    24,499.99
    24,999.99
    5,925
    24,999.99
    25,499.99
    5,750
    25,499.99
    25,999.99
    5,575
    25,999.99
    26,499.99
    5,400
    26,499.99
    26,999.99
    5,225
    26,999.99
    27,499.99
    5,050
    27,499.99
    27,999.99
    4,875
    27,999.99
    28,499.99
    4,700
    28,499.99
    28,999.99
    4,525
    28,999.99
    29,499.99
    4,350
    29,499.99
    29,999.99
    4,175
    29,999.99 <
    and over
    4,000

    Married - Head of Household
    (Filing Status H)

    If the Amount of
    Annual Wages Is:

    The Standard Deduction
    Amount Is:

    Over
    But Not Over:
    $ 0
    >$20,499.99
    $ 4,700
    20,499.99
    20,999.99
    4,565
    20,999.99
    21,499.99
    4,430
    21,499.99
    21,999.99
    4,295
    21,999.99
    22,499.99
    4,160
    22,499.99
    22,999.99
    4,025
    22,999.99
    23,499.99
    3,890
    23,499.99
    23,999.99
    3,755
    23,999.99
    24,499.99
    3,620
    24,499.99
    24,999.99
    3,485
    24,999.99
    25,499.99
    3,350
    25,499.99
    25,999.99
    3,215
    25,999.99
    26,499.99
    3,080
    26,499.99
    26,999.99
    2,945
    26,999.99
    27,499.99
    2,810
    27,499.99
    27,999.99
    2,675
    27,999.99
    28,499.99
    2,540
    28,499.99
    28,999.99
    2,405
    28,999.99
    29,499.99
    2,270
    29,499.99
    29,999.99
    2,135
    29,999.99<
    and over
    2,000

  7. Calculate the Federal Tax Deduction based on the actual amount of federal tax withheld this payroll period multiplied by>26.<
  8. Determine the personal exemption allowance based on the employee's marital status using the following table.

  9. If the Employee Claims the Following Withholding
    Exemption Status:

    The Personal Exemption Allowance Is:

    Zero
    $ 0
    Single or Married Filing Separate
    1,500
    Married or Head of Household
    3,000

  10. Calculate the Dependent Exemption by multiplying the number of exemptions claimed by one of the following amounts based on the employee's annualized wages.

  11. If the Amount of
    Annual Wages Is:

    The Amount Per
    Dependent Is:

    Over
    But Not Over:
    $ 0
    $ 20,000
    $ 1,000
    20,000
    100,000
    500
    100,000
    and over
    300


  12. If the employee is claiming "0" (ZERO), SINGLE, MARRIED FILING SEPARATELY or HEAD OF HOUSEHOLD, apply the following tax rate the annualized taxable wages to determine the annual amount.

  13. Zero
    Single
    Married - Filing Separately
    Head of Household

    If the Amount of
    Annual Taxable Wages Is:

    The Amount of Tax Is:

    Over
    But Not
    Over
    $ 0
    $ 500
    $ 0
    plus
    2.0%
    $ 0
    500
    3,000
    10
    plus
    4.0%
    500
    3,000
    and over
    110
    plus
    5.0%
    3,000

  14. If the employee is claiming MARRIED, apply the following tax rate the annualized taxable wages to determine the annual amount.

  15. Married

    If the Amount of
    Annual Taxable Wages Is:

    The Amount of Tax Is:

    Over:

    But Not
    Over:

    $ 0
    $ 1,000
    $ 0
    plus
    2.0%
    $ 0
    1,000
    6,000
    20
    plus
    4.0%
    1,000
    6,000
    and over
    220
    plus
    5.0%
    6,000

    11. Divide the annual Alabama tax withholding by >26< to obtain the biweekly Alabama tax withholding.


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