Alabama Tax Rate
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?
The Alabama state tax rates depend on two factors: your adjusted gross income 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! Tax Pro Go, virtual tax prep offered by H&R Block. We’ll match you with a tax pro with Alabama tax expertise. Then, upload your tax documents, and your dedicated tax pros will do the rest!
Taking these Alabama taxes into consideration, we can make sure you are supported with state tax requirements. Whether understanding your tax obligations, resolving state tax problems, or filing your state taxes, we’ve got you covered!
What does it mean to be an enrolled agent? Learn more about the roles and requirements of enrolled agent (EA) tax preparers at H&R Block.
Are you a wage earner in Oklahoma? Find out everything you need to know about Oklahoma tax rates and brackets, with help from the tax pros at H&R Block.
Accidentally filed as head of household, but a different status doesn’t change your refund. Do you need to amend your filing status? Learn more at H&R Block.
Do you need your child's SSN before you can claim him as a dependent? Learn the answer before you file. Get tax answers at H&R Block.