Alabama Paycheck Calculator 2026
Enter your pay and your Form A-4 details to see what lands in your bank account. Alabama taxes wages at 2% to 5%, after letting you subtract the federal income tax taken from your pay — we show every step.
| Per paycheck | Amount | Per year |
|---|---|---|
| Gross pay | $2,115.38 | $55,000.00 |
| Federal income tax · withheld | −$170.00 | −$4,420.00 |
| Social Security (6.2%) | −$131.15 | −$3,410.00 |
| Medicare (1.45%) | −$30.67 | −$797.50 |
| Alabama income tax · withheld | −$88.04 | −$2,289.04 |
| Local occupational tax · enter your local rate above | $0.00 | $0.00 |
| Take-home pay | $1,695.52 | $44,083.46 |
How the federal income tax was worked out
| Pay subject to income tax, for the year · $2,115.38 × 26 paychecks | $55,000.00 |
| Minus the IRS withholding allowance · Pub 15-T Worksheet 1A, line 1g | −$8,600.00 |
| Adjusted yearly wage | $46,400.00 |
| Tax from the IRS yearly table · standard table | $4,420.00 |
| Federal income tax per paycheck · divided by 26 | $170.00 |
IRS Publication 15-T (2026), Worksheet 1A — the percentage method payroll software uses for a Form W-4 from 2020 or later. Your employer's figure can differ by a few cents because of rounding.
How the Alabama income tax was worked out
| Pay subject to Alabama tax, for the year · this paycheck × 26, after pre-tax 401(k) and health benefits | $55,000.00 |
| Minus Alabama standard deduction · single (S), pay of $35,500 or more | −$2,500.00 |
| Minus federal income tax withheld · your federal income tax for the year | −$4,420.00 |
| Minus personal exemption · single (S) | −$1,500.00 |
| Alabama taxable pay for the year | $46,580.00 |
| Yearly Alabama tax · 2% / 4% / 5%; 5% on the part over $3,000 | $2,289.00 |
| Alabama income tax this paycheck · ÷ 26 | $88.04 |
What comes out of a Alabama paycheck
- Federal income tax withholding — worked out from your pay and your Form W-4, using the IRS tables for 2026.
- Social Security — 6.2% of your pay, up to $184,500 of pay in 2026. Above that, it stops for the rest of the year.
- Medicare — 1.45% of all your pay, plus 0.9% on pay above $200,000 in the year.
Alabama has a graduated income tax of 2%, 4% and 5%. Employers work out how much to withhold with the Department of Revenue's 2026 formula:
- Your pay subject to Alabama tax — after a traditional 401(k) and pre-tax health insurance — is turned into a yearly amount.
- Four things are subtracted: the Alabama standard deduction, the federal income tax withheld from your pay (for the year), a personal exemption of $1,500 (S or MS) or $3,000 (M or H), and $1,000 for each dependent — $500 each once your yearly pay passes $50,000, and $300 each above $100,000.
- What's left is taxed at 2% on the first $500, 4% on the next $2,500 and 5% on the rest. If you claim "M" on your A-4, the steps double: 2% on the first $1,000, 4% on the next $5,000, 5% above $6,000.
- The yearly tax is divided by your number of paychecks.
Alabama does not take any state payroll program out of your pay: state unemployment tax is paid by your employer. Some cities and counties charge a local occupational tax on pay earned there — enter its rate above to include it.
What's different about Alabama
Federal tax lowers your Alabama tax
Alabama is unusual: the federal income tax withheld from your paycheck is subtracted before Alabama tax is worked out. So anything that raises your federal withholding — such as extra withholding on your W-4 — lowers your Alabama withholding a little, and the other way round.
The standard deduction shrinks as pay goes up
If you claim "S" or "0", the standard deduction is $3,000 when your yearly pay is $25,999 or less. It drops by $25 for each $500 above that, down to $2,500 from $35,500. For "M" it runs from $8,500 down to $5,000; for "H" from $5,200 to $2,500; for "MS" from $4,250 to $2,500, starting above $12,999.
Your Form A-4
Form A-4 is Alabama's version of the W-4. You pick one exemption — "0", "S", "MS", "M" or "H" — and list your dependents other than your spouse. If you never gave your employer an A-4, it withholds as if you claimed "0": no personal exemption. If a married couple claims "M" on one spouse's A-4, the other spouse claims "0".
Local occupational taxes
A few Alabama cities and counties, such as Birmingham, charge an occupational tax on wages earned inside their limits. Your employer withholds it along with state tax. Check your pay stub or your city's revenue office for the rate.
Overtime deduction for 2026
From 2026, Alabama lets you deduct the extra "half" of time-and-a-half overtime pay on your state return, up to $1,000 a year. It does not change what your employer withholds, so this calculator doesn't include it.
Why your paycheck might differ from this
- Your W-4. Credits for children (Step 3), a checked Step 2 box, or extra withholding (Step 4c) change the federal amount a lot. Open "Tips, 401(k), health insurance and W-4 details" above to enter them.
- Benefits taken before tax. Health insurance through work usually lowers income tax and Social Security and Medicare. A traditional 401(k) lowers income tax only.
- Rounding. Payroll software may round each step, so a few cents of difference is normal.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Alabama Department of Revenue — Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026) — formula steps 1–6; standard deduction phase-down; $1,500/$3,000 personal exemption; $1,000/$500/$300 per dependent; 2%/4%/5% rates; federal withholding deducted; worked example (M-2, $850 weekly → $29.59); no A-4 → zero exemptions
- Alabama Department of Revenue — Form A-4, Employee's Withholding Exemption Certificate (rev. 4/2025) — exemption lines 0, S, MS, M, H; dependents other than spouse
- Alabama Department of Revenue — Withholding tax FAQs — Section 125, 401(k) and 403(b) exclusions recognized
- Alabama Department of Revenue — Overtime Premium Deduction (Act 2026-604) — deduction on the return for tax years 2026–2028, up to $1,000; W-2 wages and withholding unchanged
- Alabama Department of Revenue — Unemployment compensation tax — tax is due by an employer on the first $8,000 paid to each employee
- U.S. Treasury, Treasury Financial Manual — Appendix 2: list of cities and counties, types of tax — Alabama localities with occupational taxes, including the City of Birmingham
- City of Birmingham — Finance Department (Tax and License Administration) — collects occupational license taxes
- U.S. Department of Labor — State minimum wage laws — Alabama: no state minimum wage law; the federal $7.25 applies
- U.S. Department of Labor — Minimum wages for tipped employees — Alabama: federal $2.13 cash wage, more than $30 a month in tips
- Alabama Department of Labor — Wage and Hour information — no state wage and hour laws; federal rules and the U.S. Wage and Hour Division
- U.S. Department of Labor — State payday requirements — Alabama: no regulations or not specified
- U.S. Department of Labor — Last paycheck — federal law does not require immediate final pay
- IRS Publication 15-T (2026) — Worksheet 1A — used to estimate federal withholding if the engine does not pass it
Questions
What is the Alabama income tax rate in 2026?
2% on the first $500 of taxable income, 4% on the next $2,500 and 5% above $3,000 (double those amounts for married couples claiming "M").
How much is taken out of a $1,000 paycheck in Alabama?
For a single filer paid every two weeks with nothing else on the W-4, a $1,000 paycheck has about $38.08 of federal income tax, $62.00 of Social Security and $14.50 of Medicare taken out, $37.95 of Alabama income tax, leaving $847.47. Enter your own details in the calculator for your exact figure.
What is $20 an hour after taxes in Alabama?
Working 40 hours a week and paid every two weeks, $20 an hour is $1,600.00 before tax and about $1,304.09 after tax per paycheck — $33,906.24 a year — for a single filer with a standard W-4.
Why does my federal tax affect my Alabama tax?
Alabama's withholding formula subtracts the federal tax withheld from each paycheck, turned into a yearly figure, before working out Alabama tax.
What happens if I didn't fill out a Form A-4?
Your employer withholds using zero exemptions ("0"), so you get the standard deduction but no $1,500 personal exemption and nothing for dependents.
What is the minimum wage in Alabama?
$7.25 an hour, the federal minimum wage, because Alabama has no minimum wage law of its own. Tipped employees can be paid $2.13 an hour in cash if tips make up the rest.
When do I get my last paycheck in Alabama?
Alabama has no state law on paydays or final pay for private employers, and federal law does not require a final paycheck right away. If it hasn't arrived after the regular payday for your last pay period, you can contact the U.S. Wage and Hour Division.