Individual Tax Rates

Home

Alabama's individual rates are extremely compressed. A single mother with Alabama taxable income of $3,001 or more, or a married couple with taxable income of more than $6,000, pay the same marginal rate on their Alabama income as someone making a six-figure income does.

Thanks to tax reform legislation taking effect in 2007, the standard deduction and personal exemptions available to lower income Alabama taxpayers were expanded somewhat, and a family of four can now have gross income of as much as $12,500 before they incur any Alabama income tax liability. This is still a very low threshold, of course, but it is definitely an improvement over where we were before the law changed.


Single, Head of Family, or Married Filing Separately
Taxable Income Not Less ThanAnd Not More ThanTax IsPlusOf Amount Over
$ 1$ 500$ 02%$ 0
5013,000104%500
3,001-1105%3,000


Married Filing Jointly
Taxable Income Not Less ThanAnd Not More ThanTax IsPlusOf Amount Over
$ 1$ 1,000$ 02%$ 0
1,0016,000204%1,000
6,001-2205%6,000


Assume, for example, a married couple with Alabama taxable income of $25,000. Their Alabama tax on that income will be $1,170 {$220 + [(25,000 - 6,000)* 5%]}. Or, assume a single taxpayer with Alabama taxable of $70,000. Her Alabama tax will be $3,460 {$110 + [(70,000 - 3,000) * 5%]}.


This page last updated 2/8/13

Top of page.