Alabama Tax Rate

2 min read


2 min read


While federal tax rates apply to every taxpayer based on their filing status, state income taxes vary by state. Some states have a flat tax rate, marginal tax rate, or don’t have any state taxes at all. Alabama has a marginal tax rate.

If you are an Alabama resident or earn income within the state, you will likely need to file an Alabama state tax return. Read on to learn more about the Alabama income tax rate in this post…

What is the Alabama State Tax Rate?

tax bracketsThe Alabama state tax rates depend on two factors: your adjusted gross income (AGI) and filing status. Alabama state tax rates are at 2%, 4%, and 5%.

The top rate can never exceed 5% because of the limit imposed by the state Constitution. Here’s a breakdown of the Alabama income tax rates, by filing status:

For single persons, heads of families, and married persons filing separate returns:

    • 2% First $500 of taxable income
    • 4% Next $2,500 of taxable income
    • 5% All taxable income over $3,000

For married persons filing a joint return:

    • 2%    First $1,000 of taxable income
    • 4%    Next $5,000 of taxable income
    • 5%    All taxable income over $6,000

(Source: Alabama Department of Revenue)

More Help With Taxes in Alabama

Understanding tax rates in Alabama can be tricky. Luckily, we’re here to save the day with H&R Block Virtual! With this service, we’ll match you with a tax pro with Alabama tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your AL taxes, including federal deductions for paying state taxes.

Prefer a different way to file? No problem – you can find Alabama state tax expertise with all of our ways to file taxes.

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