Alabama state income tax rates and calculator
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Alabama taxes income using a progressive, or graduated, rate system, with rates ranging from 2 percent to 5 percent across three tax brackets.
Alabama personal income tax rates for 2024
For income earned in 2024 and filed on tax returns in 2025, you’ll pay the tax rates noted in the table below.
Like the U.S. tax system, Alabama has a graduated, or progressive, tax system. That means your marginal tax rate is the top rate you pay, but your effective, or actual, tax rate is a blend of tax rates. Usually, your effective tax rate will be lower than your marginal rate.
For example, a single or head-of-household filer in Alabama with $30,000 in taxable income in 2024 will pay a 2 percent tax rate on their first $500 of income, a 4 percent tax rate on income that falls between $500 and $3,000 (in other words, on $2,500 of income), and 5 percent on any income over $3,000 (in our example, that means a 5 percent rate on $27,000). Read more about marginal vs. effective tax rates.
| Alabama income tax rates for 2024 | ||
| Tax rate | Single, head of household, married filing separately | Married filing jointly |
| 2% | $0 to $500 | $0 to $1,000 |
| 4% | $500 to $3,000 | $1,000 to $6,000 |
| 5% | $3,000+ | $6,000+ |
Source: Alabama Department of Revenue
Who has to file Alabama state taxes?
Here are the Alabama guidelines on who must file a tax return, based on gross income.
| Full-year resident | Gross income was at least… |
|---|---|
| Single | $4,500 |
| Head of household | $8,200 |
| Married filing jointly | $11,500 |
| Married filing separately | $5,750 |
| Part-year resident | Gross income was at least… |
|---|---|
| Single | $4,500 (while an Alabama resident) |
| Head of household | $8,200 (while an Alabama resident) |
| Married filing jointly | $11,500 (while an Alabama resident) |
| Married filing separately | $5,750 (while an Alabama resident) |
Nonresidents are required to file a tax return if their income from Alabama exceeds a specified, prorated portion of the personal exemption. See the Form 40 booklet for more information on who must file.
Taxes are generally due on April 15, unless that day falls on a weekend or holiday, in which case it’s the next business day. Alabama taxpayers no longer have to file for an extension; taxpayers are granted an automatic extension to Oct. 15. Details are in the Form 40 instruction book.
Is there a personal exemption or standard deduction in Alabama?
Yes, Alabama offers a personal exemption and standard deduction, both of which allow you to reduce your taxable income by the amounts listed in the chart below. The standard deduction varies based on your income, with the highest deduction amounts applying to the lowest income brackets.
You may also be able to deduct $300 per dependent, as well as exclude certain types of income from tax.
Alabama personal exemptions and standard deduction for 2024
| Filing status | Personal exemption | Standard deduction (varies based on income) |
|---|---|---|
| Single | $1,500 | $2,500 to $3,000 |
| Head of household | $3,000 | $2,500 to $3,000 |
| Married filing jointly | $3,000 | $5,000 to $8,500 |
| Married filing separately | $1,500 | $2,500 to $4,250 |
Alabama sales tax rate
Alabama’s state sales tax rate is 4 percent on general purchases. Certain categories of purchases, such as groceries and autos, qualify for lower sales tax rates.
In addition to state sales tax, there are more than 200 city and county sales taxes in Alabama. The average combined state and local sales tax rate is 9.29 percent, according to the Tax Foundation. However, Alabama does occasionally hold sales tax holidays, so keep an eye out for those.
Search the Alabama Department of Revenue’s online database of cities and counties that levy sales, use, lodging and rental taxes to find your local rates.
Other things to know about Alabama taxes
- Alabama property taxes are assessed at a local level. The effective (average) property tax rate for owner-occupied housing is 0.36 percent, according to the Tax Foundation.
- An ad valorem property tax of 15 percent is imposed on vehicles in the state.
- Alabama has no estate, inheritance or gift tax.
- The corporate tax rate is 6.5 percent.
- The gasoline tax is 29 cents per gallon.
- The cigarette tax is 67.5 cents per pack.