1. Find your income exemptions
2. Find your pretax deductions, including 401K, flexible account contributions ... 3. Find your gross income 4. Check the 2018 Alabama state tax rate and the rules to calculate state income tax 5. Calculate your state income tax step by step 6. If you want to simplify payroll tax calculations, you can download ezPaycheck payroll software, which can calculate federal tax, state tax, Medicare tax, Social Security Tax and other taxes for you automatically. You can try it free for 30 days, with no obligation and no credt card needed. Learn more about the in house payroll tax solution for Alabama small businesses here. |
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2024 Alabama State Tax Witholding Table 2023 Alabama State Tax Witholding Table 2022 Alabama State Tax Witholding Table 2021 Alabama State Tax Witholding Table 2020 Alabama State Tax Witholding Table ( 2019 2018 2017 2016 2015 ) |

## Tax rate used in calculating Alabama state tax for year 2018
## Need a Better Way to Calculate Alabama State Income Tax Withholdings?Click here to view the step by step guide onHow to Calculate Alabama State Income Tax Withholdings Automatically How to Create After the Fact Paychecks and Generate the Paystubs
- 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:
- 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.
- 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 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.
- If the employee is claiming MARRIED, apply the following tax rate the annualized taxable wages to determine the annual amount.
11. Divide the annual Alabama tax withholding by >26< to obtain the biweekly Alabama tax withholding. ## More Payroll Information for Alabama Small Business |