Alabama payroll · Updated November 6, 2026
Alabama paycheck calculator for 2026
See what comes out of an Alabama paycheck: federal income tax, Social Security, Medicare, Alabama income tax at 2% to 5% (Alabama subtracts your federal income tax first), and occupational tax if you work in Birmingham or another taxing city. Enter a salary, an hourly rate or one paycheck.
Calculate my take-home payCalculate your Alabama take-home pay
Take-home pay per paycheck
$1,841.57
$47,881 a year
| Paycheck | Year | |
|---|---|---|
| Gross pay | $2,307.69 | $60,000 |
| Federal income tax | -$193.08 | -$5,020 |
| Social Security (6.2%) | -$143.08 | -$3,720 |
| Medicare (1.45%) | -$33.46 | -$870 |
| Alabama income tax | -$96.50 | -$2,509 |
| Take-home pay | $1,841.57 | $47,881 |
2026 estimate for one paycheck, using the IRS percentage method and Alabama’s withholding formula. Your employer's payroll may differ by a few cents to a few dollars. Not tax advice.
What comes out of a Alabama paycheck
| Deduction | Rate | Applies to |
|---|---|---|
| Federal income tax | 10% to 37% | Wages after the W-4 standard amount, by filing status |
| Social Security | 6.2% | Wages up to $184,500 for 2026 |
| Medicare | 1.45%, plus 0.9% over $200,000 | All wages, no cap |
| Alabama income tax | 2% to 5% | Wages minus a sliding standard deduction, federal income tax withheld, the personal exemption and dependents |
| Occupational tax | 1% to 2% in the cities that levy it | Gross wages for work done in the city |
Example: $60,000 a year, paid every two weeks
| Line | Per paycheck | Year |
|---|---|---|
| Gross pay ($60,000 ÷ 26) | $2,307.69 | $60,000 |
| Federal income tax | −$193.08 | −$5,020 |
| Social Security (6.2%) | −$143.08 | −$3,720 |
| Medicare (1.45%) | −$33.46 | −$870 |
| Alabama income tax | −$96.50 | −$2,509 |
| Take-home pay | $1,841.57 | $47,881 |
How Alabama withholding works
Alabama’s withholding formula subtracts the federal income tax withheld from your pay for the year. It also subtracts a standard deduction that shrinks as wages rise, from $3,000 to $2,500 for single filers and from $8,500 to $5,000 for married filers between about $26,000 and $35,500; a personal exemption of $1,500 (single) or $3,000 (married or head of household); and $1,000, $500 or $300 per dependent depending on income. The rest is taxed at 2% on the first $500, 4% on the next $2,500 and 5% above $3,000 (double those amounts for married filers).
Your employer needs Form A-4; without it, Alabama withholds with zero exemptions, and a federal W-4 is not a substitute. Bonuses are withheld at 5%. Alabama unemployment tax is paid by employers.
Alabama occupational taxes
Several Alabama cities levy an occupational tax on wages earned working there, withheld by employers: 1% in Birmingham, Bessemer and Auburn, and 2% in Gadsden. The state does not keep a list; check with the city where you work.
Minimum wage in Alabama
Alabama has no state minimum wage law, so the federal $7.25 an hour applies.
Your federal withholding and Form W-4
Federal withholding is separate from the state’s and depends on your Form W-4: your filing status, the Step 2 box if you have two jobs or both spouses work, and the Step 3 amount for children and other dependents. Pre-tax 401(k), 403(b) and cafeteria-plan health premiums come out before income tax is figured. If you are paid on a 1099 instead of a W-2, nothing is withheld; use the self-employment tax calculator and plan for estimated payments.
Questions
How much is taken out of a $60,000 paycheck in Alabama?
For a single person paid every two weeks with no W-4 adjustments, no dependents and no occupational tax, about $193.08 federal income tax, $143.08 Social Security, $33.46 Medicare and $96.50 Alabama income tax come out of each $2,307.69 paycheck, leaving about $1,841.57.
Does Alabama let you deduct federal income tax?
Alabama’s withholding formula does: it subtracts the federal income tax withheld from your pay for the year before applying Alabama’s rates.
What is the Birmingham occupational tax?
1% of gross wages for work done in Birmingham, withheld by employers.
Why is my paycheck different from this calculator?
Payroll systems round differently, and paychecks can include things this calculator leaves out: overtime, bonuses withheld at the flat supplemental rate, after-tax deductions, extra withholding on your W-4, or W-4 Step 4 adjustments.
Owe at tax time, or getting too much back?
We prepare federal returns for clients in every state and can tell you how to set your W-4 so next year comes out closer. We work remotely through a secure portal, by phone or video.
Tax preparation serviceWhere these rules come from
- Alabama DOR: Withholding Tax Tables and Instructions, January 2026 (PDF)
- Alabama DOR: Form A-4 (PDF)
- Alabama Department of Labor
- IRS Publication 15-T (2026): Federal Income Tax Withholding Methods
- IRS Topic 751: Social Security and Medicare withholding rates
Related
- Paycheck calculators for other states
- Alabama income tax
- What is FICA tax? Rates for 2026 and 2027
- Federal tax brackets for 2026 and 2027
- Self-employment tax calculator
- Illinois paycheck calculator
USTAXX prepares tax returns and offers tax planning. We are not a CPA firm and do not represent clients before the IRS. This page is general information, not tax advice for your situation.