Tax rate used in calculating Alabama state tax for year 2025

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Withholding Formula >(Alabama Effective 2025)<

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:

   
   

$0	>26,000.00	3,000
26,000.00	26,500.00	2,975
26,500.00	27,000.00	2,950
27,000.00	27,500.00	2,925
27,500.00	28,000.00	2,900
28,000.00	28,500.00	2,875
28,500.00	29,000.00	2,850
29,000.00	29,500.00	2,825
29,500.00	30,000.00	2,800
30,000.00	30,500.00	2,775
30,500.00	31,000.00	2,750
31,000.00	31,500.00	2,725
31,500.00	32,000.00	2,700
32,000.00	32,500.00	2,675
32,500.00	33,000.00	2,650
33,000.00	33,500.00	2,625
33,500.00	34,000.00	2,600
34,000.00	34,500.00	2,575
34,500.00	35,000.00	2,550
35,000.00	35,500.00	2,525
35,500.00 <	and over	2,500




Married - Filing Separately (Filing Status N)

If the Amount of Taxable Income Is:

The Standard Deduction Amount Is:

Over:	But Not Over:
$ 0	>$ 13,000.00	$ 4,250
13,000.00	13,250.00	4,162
13,250.00	13,500.00	4,074
13,500.00	13,750.00	3,986
13,750.00	14,000.00	3,898
14,000.00	14,250.00	3,810
14,250.00	14,500.00	3,722
14,500.00	14,750.00	3,634
14,750.00	15,000.00	3,546
15,000.00	15,250.00	3,458
15,250.00	15,500.00	3,370
15,500.00	15,750.00	3,282
15,750.00	16,000.00	3,194
16,000.00	16,250.00	3,106
16,250.00	16,500.00	3,018
16,500.00	16,750.00	2,930
16,750.00	17,000.00	2,842
17,000.00	17,250.00	2,754
17,250.00	17,500.00	2,666
17,500.00	17,750.00	2,578
17,750.00<	and over	2,500




Married (Filing Status M)

If the Amount of Taxable Income Is:

The Standard Deduction Amount Is:

Over	But Not Over:
$ 0	>$ 26,000.00	$ 8,500
26,000.00	26,500.00	8,325
26,500.00	27,000.00	8,150
27,000.00	27,500.00	7,975
27,500.00	28,000.00	7,800
28,000.00	28,500.00	7,625
28,500.00	29,000.00	7,450
29,000.00	29,500.00	7,275
29,500.00	30,000.00	7,100
30,000.00	30,500.00	6,925
30,500.00	31,000.00	6,750
31,000.00	31,500.00	6,575
31,500.00	32,000.00	6,400
32,000.00	32,500.00	6,225
32,500.00	33,000.00	6,050
33,000.00	33,500.00	5,875
33,500.00	34,000.00	5,700
34,000.00	34,500.00	5,525
34,500.00	35,000.00	5,350

35,000.00	35,500.00	5,175
35,500.00 <	and over	5,000




Married - Head of Household (Filing Status H)

If the Amount of Annual Wages Is:

The Standard Deduction Amount Is:

Over	But Not Over:
$ 0	>$26,000.00	$ 5,200
26,000.00	26,500.00	5,065
26,500.00	27,000.00	4,930
27,000.00	27,500.00	4,795
27,500.00	28,000.00	4,660
28,000.00	28,500.00	4,525
28,500.00	29,000.00	4,390
29,000.00	29,500.00	4,255
29,500.00	30,000.00	4,120
30,000.00	30,500.00	3,985
30,500.00	31,000.00	3,850
31,000.00	31,500.00	3,715
31,500.00	32,000.00	3,580
32,000.00	32,500.00	3,445
32,500.00	33,000.00	3,310
33,000.00	33,500.00	3,175
33,500.00	34,000.00	3,040
34,000.00	34,500.00	2,905
34,500.00	35,000.00	2,770
35,000.00	35,500.00	2,635
35,500.00<	and over	2,500



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

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



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

If the Amount of Annual Wages Is:

The Amount Per Dependent Is:

Over	But Not Over:
$ 0	$ 50,000	$ 1,000
50,000	100,000	500
100,000	and over	300




9. 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.
   
   

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



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

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.

More Payroll Information for Alabama Small Business