Tax rate used in calculating Alabama state tax for year 2023State Abbreviation: | AL | State Tax Withholding State Code: | 01 | Acceptable Exemption Form: | A-4 | Basis For Withholding: | State Exemptions | Acceptable Exemption Data: | S, N, M, H / Number of Exemptions | TSP Deferred: | Yes | Special Coding: | Determine the Total Number Of Allowances Claimed field as follows:First Position - S = Single; N = Married, Filing Separate Returns; M = Married; H = Head of Household.Second and Third Positions - Enter the total number of allowances claimed. If less than 10, precede with a zero. | Additional Information: | None |
Withholding Formula >(Alabama Effective 2023)< - Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment (s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times >26< to obtain the gross annual wages.
- Determine the personal exemption by applying the following guideline and subtract this amount from the gross wages to compute the taxable income.
Tax Withholding Table Zero or Single (Filing Status S) | If the Amount of Taxable Income Is: | The Standard Deduction Amount Is: | | Over: | But Not Over: | |
| $0 | | 3,000 | | 26,000.00 | | 2,975 | | 26,500.00 | | 2,950 | | 27,000.00 | | 2,925 | | 27,500.00 | | 2,900 | | 28,000.00 | | 2,875 | | 28,500.00 | | 2,850 | | 29,000.00 | | 2,825 | | 29,500.00 | | 2,800 | | 30,000.00 | | 2,775 | | 30,500.00 | | 2,750 | | 31,000.00 | | 2,725 | | 31,500.00 | | 2,700 | | 32,000.00 | | 2,675 | | 32,500.00 | | 2,650 | | 33,000.00 | | 2,625 | | 33,500.00 | | 2,600 | | 34,000.00 | | 2,575 | | 34,500.00 | | 2,550 | | 35,000.00 | | 2,525 | | 35,500.00< | | 2,500 |
Married - Filing Separately (Filing Status N) |
If the Amount of Taxable Income Is: | The Standard Deduction Amount Is: |
| Over: | But Not Over: | | | $ 0 | >$ 13,000.00 | $ 4,250 | | 13,000.00 | 13,250.00 | 4,162 | | 13,250.00 | 13,500.00 | 4,074 | | 13,500.00 | 13,750.00 | 3,986 | | 13,750.00 | 14,000.00 | 3,898 | | 14,000.00 | 14,250.00 | 3,810 | | 14,250.00 | 14,500.00 | 3,722 | | 14,500.00 | 14,750.00 | 3,634 | | 14,750.00 | 15,000.00 | 3,546 | | 15,000.00 | 15,250.00 | 3,458 | | 15,250.00 | 15,500.00 | 3,370 | | 15,500.00 | 15,750.00 | 3,282 | | 15,750.00 | 16,000.00 | 3,194 | | 16,000.00 | 16,250.00 | 3,106 | | 16,250.00 | 16,500.00 | 3,018 | | 16,500.00 | 16,750.00 | 2,930 | | 16,750.00 | 17,000.00 | 2,842 | | 17,000.00 | 17,250.00 | 2,754 | | 17,250.00 | 17,500.00 | 2,666 | | 17,500.00 | 17,750.00 | 2,578 | | 17,750.00< | and over | 2,500 |
If the Amount of Taxable Income Is: | The Standard Deduction Amount Is: |
| Over | But Not Over: | | | $ 0 | >$ 26,000.00 | $ 8,500 | | 26,000.00 | 26,500.00 | 8,325 | | 26,500.00 | 27,000.00 | 8,150 | | 27,000.00 | 27,500.00 | 7,975 | | 27,500.00 | 28,000.00 | 7,800 | | 28,000.00 | 28,500.00 | 7,625 | | 28,500.00 | 29,000.00 | 7,450 | | 29,000.00 | 29,500.00 | 7,275 | | 29,500.00 | 30,000.00 | 7,100 | | 30,000.00 | 30,500.00 | 6,925 | | 30,500.00 | 31,000.00 | 6,750 | | 31,000.00 | 31,500.00 | 6,575 | | 31,500.00 | 32,000.00 | 6,400 | | 32,000.00 | 32,500.00 | 6,225 | | 32,500.00 | 33,000.00 | 6,050 | | 33,000.00 | 33,500.00 | 5,875 | | 33,500.00 | 34,000.00 | 5,700 | | 34,000.00 | 34,500.00 | 5,525 | | 34,500.00 | 35,000.00 | 5,350 |
| 35,000.00 | 35,500.00 | 5,175 | | 35,500.00< | and over | 5,000 |
Married - Head of Household (Filing Status H) |
If the Amount of Annual Wages Is: | The Standard Deduction Amount Is: |
| Over | But Not Over: | | | $ 0 | >$26,000.00 | $ 5,200 | | 26,000.00 | 26,500.00 | 5,065 | | 26,500.00 | 27,000.00 | 4,930 | | 27,000.00 | 27,500.00 | 4,795 | | 27,500.00 | 28,000.00 | 4,660 | | 28,000.00 | 28,500.00 | 4,525 | | 28,500.00 | 29,000.00 | 4,390 | | 29,000.00 | 29,500.00 | 4,255 | | 29,500.00 | 30,000.00 | 4,120 | | 30,000.00 | 30,500.00 | 3,985 | | 30,500.00 | 31,000.00 | 3,850 | | 31,000.00 | 31,500.00 | 3,715 | | 31,500.00 | 32,000.00 | 3,580 | | 32,000.00 | 32,500.00 | 3,445 | | 32,500.00 | 33,000.00 | 3,310 | | 33,000.00 | 33,500.00 | 3,175 | | 33,500.00 | 34,000.00 | 3,040 | | 34,000.00 | 34,500.00 | 2,905 | | 34,500.00 | 35,000.00 | 2,770 | | 35,000.00 | 35,500.00 | 2,635 | | 35,500.00< | and over | 2,500 |
- Calculate the Federal Tax Deduction based on the actual amount of federal tax withheld this payroll period multiplied by>26.<
- Determine the personal exemption allowance based on the employee's marital status using the following table.
If the Employee Claims the Following Withholding Exemption Status: | The Personal Exemption Allowance Is: | | Zero | $ 0 | | Single or Married Filing Separate | 1,500 | | Married or Head of Household | 3,000 |
- Calculate the Dependent Exemption by multiplying the number of exemptions claimed by one of the following amounts based on the employee's annualized wages.
If the Amount of Annual Wages Is: | The Amount Per Dependent Is: |
| Over | But Not Over: | | | $ 0 | $ 20,000 | $ 1,000 | | 20,000 | 100,000 | 500 | | 100,000 | and over | 300 |
- If the employee is claiming "0" (ZERO), SINGLE, MARRIED FILING SEPARATELY or HEAD OF HOUSEHOLD, apply the following tax rate the annualized taxable wages to determine the annual amount.
Zero Single Married - Filing Separately Head of Household |
If the Amount of Annual Taxable Wages Is: | The Amount of Tax Is: |
| Over | But Not Over | | | $ 0 | $ 500 | $ 0 | plus | 2.0% | $ 0 | | 500 | 3,000 | 10 | plus | 4.0% | 500 | | 3,000 | and over | 110 | plus | 5.0% | 3,000 |
- If the employee is claiming MARRIED, apply the following tax rate the annualized taxable wages to determine the annual amount.
If the Amount of Annual Taxable Wages Is: | The Amount of Tax Is: | Over: | But Not Over: | | | $ 0 | $ 1,000 | $ 0 | plus | 2.0% | $ 0 | | 1,000 | 6,000 | 20 | plus | 4.0% | 1,000 | | 6,000 | and over | 220 | plus | 5.0% | 6,000 |
11. Divide the annual Alabama tax withholding by >26< to obtain the biweekly Alabama tax withholding.
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