Alabama Income Tax
Alabama does not levy a state income tax on earned income. Residents pay only federal income tax.
Why It Matters
Understanding Alabama's income tax structure helps you accurately estimate take-home pay, compare compensation across states, and plan for your total tax burden.
Try the calculator
Open Alabama Income Tax Calculator →How It Works
Alabama has no state income tax. Your only income tax obligation is to the federal government. This calculator shows your federal tax liability.
Example
A single filer with $75,000 in taxable income in Alabama pays approximately $3,710 in state income tax (4.95% effective rate across progressive brackets), plus $11,414 in federal tax. Total combined: $15,124 — a combined effective rate of 20.2%.
Resources
Frequently Asked Questions
Do I still need to file a federal tax return in Alabama?
Yes. Even though Alabama has no state income tax, you still must file a federal income tax return with the IRS if you meet the federal filing requirements.
Does Alabama have a state income tax?
No. Alabama does not levy a state income tax on earned income. Residents pay only federal income tax on their wages and salary.
What taxes does Alabama have instead of income tax?
While Alabama has no income tax, it may rely more heavily on sales tax, property tax, or other revenue sources. Your overall tax burden depends on your spending, property ownership, and other factors.
Key Terms
Next review: 2027-01-15 • Applies to tax year: 2025