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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.

    Learn More

    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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