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Alabama Income Tax Withholding and Payroll Information

Compliance with state taxes are required for every employer. Learn about relevant rates and automation below.

December, 17th 2024

A team using ez1095 software for small businesses

Every state in the country has a unique paradigm for income tax and state unemployment insurance rates. Located below are relevant rates and complance information by state.

Employers must also adhere to federal income tax withholding rules as well. More information can be found here about federal rates .

Alternatively, employers can automatically calculate payroll witholding information by using ezPaycheck.

Learn More

Table of Contents

Alabama Tax Information

General Information
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

How to Calculate Alabama Taxes

  1. Identify the correct standard deduction by referencing the tables below.
  2. Find the correct personal exemption from below
  3. Figure out the amount of addition exemptions based on the dependents/allowance table
  4. Figure out the amount witheld for federal taxes.
  5. Add these four together to figure out total deductions.
  6. Subtract the total deductions from the gross pay to get the taxable amount.
  7. Use the tax table below to determine the amount of tax to withold based on the taxable amount.

Want to calculate in a easier way? Learn how to calculate Alabama taxes via ezPaycheck below.

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Deductions, Allowances, and Exemptions

Zero or Single (Filing as S)
Income Amount Standard Deduction Amount
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
Income Amount Standard Deduction Amount
Over But Not Over
0.00 13000.00 4250
13000.00 13250.00 4162
13250.00 13500.00 4074
13500.00 13750.00 3986
13750.00 14000.00 3898
14000.00 14250.00 3810
14250.00 14500.00 3722
14500.00 14750.00 3634
14750.00 15000.00 3546
15000.00 15250.00 3458
15250.00 15500.00 3370
15500.00 15750.00 3282
15750.00 16000.00 3194
16000.00 16250.00 3106
16250.00 16500.00 3018
16500.00 16750.00 2930
16750.00 17000.00 2842
17000.00 17250.00 2754
17250.00 17500.00 2666
17500.00 17750.00 2578
17750.00 and over 2500
Married Filing Jointly
Income Amount Standard Deduction Amount
Over But Not Over
0 26,000.00 5200
26,000.00 26,500.00 5065
26,500.00 27,000.00 4930
27,000.00 27,500.00 4795
27,500.00 28,000.00 4660
28,000.00 28,500.00 4525
28,500.00 29,000.00 4390
29,000.00 29,500.00 4255
29,500.00 30,000.00 4120
30,000.00 30,500.00 3985
30,500.00 31,000.00 3850
31,000.00 31,500.00 3715
31,500.00 32,000.00 3580
32,000.00 32,500.00 3445
32,500.00 33,000.00 3310
33,000.00 33,500.00 3175
33,500.00 34,000.00 3040
34,000.00 34,500.00 2905
34,500.00 35,000.00 2770
35,000.00 35,500.00 2635
35,500.00 and over 2500

Exemption Amount

Personal Withholding Amount
Marital Status Amount
Zero $0
Single or Married Filing Separately $1,500
Married or Head of Household $3,000

Allowance Amount

Additional deduction per claimed allowance.

Allowance Amount
Wage Amount Claimed per Allowance
More Than But Not Over
$0 $50,000 $1,000
$50,000 $100,000 $500
$100,000 and over $300

Tax Witholding Tables

Zero, Single, Married Filing Separately, and Head of Household
If Taxable Income Is Tax Withholding
Over But Not Over Rate Of Excess Over
$0 $500 $0 + 2.00% $0
$500 $3,000 $10 + 4.00% $500
$3,000 and over $110 + 5.00% $3,000
Married
If Taxable Income Is Tax Withholding
Over But Not Over Rate Of Excess Over
$0 $1,000 $0 + 2.00% $0
$1,000 $6,000 $20 + 4.00% $1,000
$6,000 and over $220 + 5.00% $6,000

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