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Alabama Income Tax Withholding and Payroll Information

Compliance with state taxes are required for every employer. Learn about relevant rates and automation below.

December, 17th 2024

A team using ez1095 software for small businesses

Every state in the country has a unique paradigm for income tax and state unemployment insurance rates. Located below are relevant rates and complance information by state.

Employers must also adhere to federal income tax withholding rules as well. More information can befound here about federal rates.

Alternatively, employers can automatically calculate payroll witholding information by using ezPaycheck.

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Table of Contents

Alabama Tax Information

General Information
State AbbreviationAL
State Tax Withholding State Code01
Acceptable Exemption FormA-4
Basis For WithholdingState Exemptions
Acceptable Exemption DataS, N, M, H / Number of Exemptions
TSP DeferredYes
Special CodingDetermine 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 InformationNone

How to Calculate Alabama Taxes

  1. Identify the correct standard deduction by referencing the tables below.
  2. Find the correct personal exemption from below
  3. Figure out the amount of addition exemptions based on the dependents/allowance table
  4. Figure out the amount witheld for federal taxes.
  5. Add these four together to figure out total deductions.
  6. Subtract the total deductions from the gross pay to get the taxable amount.
  7. Use the tax table below to determine the amount of tax to withold based on the taxable amount.

Want to calculate in a easier way? Learn how to calculate Alabama taxes via ezPaycheck below.

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Deductions, Allowances, and Exemptions

Zero or Single (Filing as S)
Income AmountStandard Deduction Amount
OverBut Not Over
026,000.003,000
26,000.0026,500.002,975
26,500.0027,000.002,950
27,000.0027,500.002,925
27,500.0028,000.002,900
28,000.0028,500.002,875
28,500.0029,000.002,850
29,000.0029,500.002,825
29,500.0030,000.002,800
30,000.0030,500.002,775
30,500.0031,000.002,750
31,000.0031,500.002,725
31,500.0032,000.002,700
32,000.0032,500.002,675
32,500.0033,000.002,650
33,000.0033,500.002,625
33,500.0034,000.002,600
34,000.0034,500.002,575
34,500.0035,000.002,550
35,000.0035,500.002,525
35,500.00and over2,500
Married Filing Separately
Income AmountStandard Deduction Amount
OverBut Not Over
0.0013000.004250
13000.0013250.004162
13250.0013500.004074
13500.0013750.003986
13750.0014000.003898
14000.0014250.003810
14250.0014500.003722
14500.0014750.003634
14750.0015000.003546
15000.0015250.003458
15250.0015500.003370
15500.0015750.003282
15750.0016000.003194
16000.0016250.003106
16250.0016500.003018
16500.0016750.002930
16750.0017000.002842
17000.0017250.002754
17250.0017500.002666
17500.0017750.002578
17750.00and over2500
Married Filing Jointly
Income AmountStandard Deduction Amount
OverBut Not Over
026,000.005200
26,000.0026,500.005065
26,500.0027,000.004930
27,000.0027,500.004795
27,500.0028,000.004660
28,000.0028,500.004525
28,500.0029,000.004390
29,000.0029,500.004255
29,500.0030,000.004120
30,000.0030,500.003985
30,500.0031,000.003850
31,000.0031,500.003715
31,500.0032,000.003580
32,000.0032,500.003445
32,500.0033,000.003310
33,000.0033,500.003175
33,500.0034,000.003040
34,000.0034,500.002905
34,500.0035,000.002770
35,000.0035,500.002635
35,500.00and over2500

Exemption Amount

Personal Withholding Amount
Marital StatusAmount
Zero$0
Single or Married Filing Separately$1,500
Married or Head of Household$3,000

Allowance Amount

Additional deduction per claimed allowance.

Allowance Amount
WageAmount Claimed per Allowance
More ThanBut Not Over
$0$50,000$1,000
$50,000$100,000$500
$100,000and over$300

Tax Witholding Tables

Zero, Single, Married Filing Separately, and Head of Household
If Taxable Income IsTax Withholding
OverBut Not OverRateOf Excess Over
$0$500$0+2.00%$0
$500$3,000$10+4.00%$500
$3,000and over$110+5.00%$3,000
Married
If Taxable Income IsTax Withholding
OverBut Not OverRateOf Excess Over
$0$1,000$0+2.00%$0
$1,000$6,000$20+4.00%$1,000
$6,000and over$220+5.00%$6,000

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