How does Alabama work out the income tax taken from my paycheck?

The Department of Revenue's formula has your employer turn the paycheck into a year of pay, then take off four things: a standard deduction, the federal income tax withheld from this paycheck times the number of pay periods, a personal exemption and your dependents. The rest is taxed at 2% on the first $500, 4% on the next $2,500 and 5% above $3,000. For a $60,000 salary, single, that is $60,000 less $2,500, less $5,020.08 of federal tax, less $1,500, $50,979.92 taxable, $2,509.00 of tax and $96.50 a paycheck.

How much is $60,000 a year after tax in Alabama?

For a single employee on a standard Form W-4 and Form A-4 exemption S, paid every two weeks, a $60,000 salary takes home $1,841.57 a paycheck, or $47,880.88 a year. The year's taxes are $5,020.08 of federal income tax, $2,509.00 of Alabama income tax, $3,720.08 of Social Security and $869.96 of Medicare.

How much is $20 an hour after tax in Alabama?

At 40 hours a week and weekly pay, $20 an hour is $800.00 gross and $652.04 take-home a week for a single employee. That is $54.08 of federal income tax, $32.68 of Alabama income tax, $49.60 of Social Security and $11.60 of Medicare. Switch to hourly in the calculator to type your own hours, including overtime.

Why does Alabama take your federal tax off before it taxes your pay?

Alabama lets the federal income tax withheld from each paycheck come off the pay before the state rates apply, so a worker whose federal tax is higher has less Alabama tax. On the $60,000 example the $193.08 of federal tax withheld a paycheck takes $5,020.08 a year out of the pay the state taxes. It also means anything that lowers your federal withholding, such as a 401(k) deferral, lowers the deduction too.

What do the letters 0, S, M, H and MS mean on the Alabama Form A-4?

They set the personal exemption and the standard deduction. S (single) takes $1,500, M (married, claiming both exemptions) and H (head of family) take $3,000, MS (married filing separately) takes $1,500 and 0 takes none. On the $60,000 example the Alabama tax is $96.50 a paycheck with S, $99.38 with 0, $95.68 with H and $91.46 with M. If an employee gives no Form A-4, the employer withholds as if the employee claimed zero. The federal Form W-4 is not a substitute.

How much is a dependent worth on the Alabama Form A-4?

Each dependent other than a spouse takes $1,000 off a year of pay when your income is up to $50,000, $500 up to $100,000 and $300 above, so it is worth less as you earn more. On the $60,000 example each takes $500 off, and 2 dependents lower the Alabama tax from $96.50 to $94.58 a paycheck, $1.92 less.

How does Alabama tax a bonus?

The booklet says employers may withhold state income tax from bonuses and supplemental wage payments at the rate of 5%. This calculator treats all pay as regular pay, and the bonus tax calculator works out the bonus case.

What if I live in another state but work in Alabama?

An Alabama employer withholds from a nonresident employee only on the wages earned in Alabama, and an Alabama resident employer withholds from a resident employee on all wages, unless it is already withholding another state's tax for the work. Since Act 2025-334, an out-of-state worker who performs services in Alabama for 30 days or fewer in a calendar year is not taxed on those earnings: the employee and employer keep paying and withholding for the home state if it has an income tax.

What does a 401(k), an HSA or a health plan do to my Alabama paycheck?

The booklet lists cafeteria plans (Section 125), retirement savings (Section 219), 401(k) plans and 403(b) plans among the federal code sections Alabama recognizes, so amounts excluded under them are not part of the wages Alabama withholds on. This calculator takes a 401(k) deferral, health premiums through a cafeteria plan and HSA contributions through one out of the pay first. Putting 6% of a $60,000 salary into a 401(k) ($138.46 a paycheck) cuts Alabama withholding by only $6.09, because the federal tax Alabama deducts also falls $16.62, and take-home pay by $115.75. A $100 HSA contribution a paycheck cuts Alabama withholding by $4.40.

Who pays unemployment tax in Alabama, and how much is it?

The employer does, to the Department of Workforce, and nothing comes out of your paycheck for it. It is due on the first $8,000 paid to each employee in a calendar year. A newly liable employer pays 2.7%, which is $216.00 a year per employee, and after that the rate comes from an experience rating that runs from 0.59% to 6.19%. Alabama is not on the Labor Department's list of states with a 2026 federal credit reduction.

Alabama Paycheck Calculator

Last updated October 22, 2026FreeNo signupFormula shown

Enter your pay, how often you are paid, the answers on your Form W-4 and the exemption letter and dependents on Alabama Form A-4, and this Alabama paycheck calculator shows your 2026 take-home pay. It follows the Department of Revenue's formula, 2%, 4% and 5% on what is left after a standard deduction, your federal tax withheld, your exemption and your dependents, and works out the employer's side of the bill under it.

State

Alabama

Another state? Pick any of the 50 states and DC.

I'm paid

Yearly salary (USD)

Pay frequency

Filing status on Form W-4

Alabama withholding

Dependents on Form A-4

Each dependent other than a spouse takes $1,000 off the year's pay, or less at higher pay.

Exemption on Form A-4

Alabama's form asks for its own letter (S single, H head of family, M married); the filing status above picks it unless you choose zero.

Form W-4 steps 2 to 4

Step 2 box is checked

Two jobs with similar pay, or both spouses work. Alabama reads this as Married Filing Separately (MS) on Form A-4, which takes a $1,500 personal exemption instead of $3,000.

Children under 17

Step 3: $2,200 each.

Other dependents

Step 3: $500 each.

Other income per year

Step 4(a).

Deductions per year

Step 4(b).

Extra withholding each paycheck (USD)

Step 4(c).

401(k), % of pay

2026 limit $24,500.

Health premiums per paycheck

Pre-tax.

HSA per paycheck

2026 limit $8,750.

Take-home pay per paycheck

$1,841.57

$2,307.69 gross · $466.12 withheld (20.2%)

Where this paycheck goes

Gross pay: $2,307.69
Federal income tax: - $193.08
Social Security6.2%: - $143.08
Medicare1.45%: - $33.46
Additional Medicare0.9%: - $0.00
Alabama income tax: - $96.50
401(k): - $0.00
Health premiums: - $0.00
HSA: - $0.00

Take-home pay$1,841.57

Over the year, 26 paychecks

Gross pay: $60,000
Taxes: - $12,119
Pre-tax deductions: - $0
Share kept: 79.8%

Take-home pay$47,881

Of every $100 of gross pay, $80 is take-home.

Federal income tax$5,020 · 8.4%
Social Security$3,720 · 6.2%
Medicare$870 · 1.4%
Alabama income tax$2,509 · 4.2%
Take-home pay$47,881 · 79.8%

Take-home pay rises with every extra dollar of salary.

Gross payTake-home pay

This pay costs the employer $64,848 a year, $2,494.15 each pay period.

What the employer adds, per year

Employer Social Security6.2% to $184,500: $3,720
Employer Medicare1.45%: $870
Federal unemployment (FUTA)0.6% of the first $7,000: $42
Alabama unemployment2.7% of the first $8,000: $216

Employer taxes$4,848

Total cost of the employee

Gross pay: $60,000
Employer taxes: + $4,848
Per pay period: $2,494.15

Per year$64,848

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Alabama withholds 2%, 4% and 5% of a year's pay, after a standard deduction, your federal tax and your exemptions.

The Department of Revenue's formula turns the paycheck into a year of pay and takes off four amounts: a standard deduction that falls from $3,000 to $2,500 for a single employee as pay rises, the federal income tax withheld from this paycheck times the pay periods, a personal exemption for the letter on your Form A-4, and $1,000 or less for each dependent. The rest is taxed at 2% on the first $500, 4% on the next $2,500 and 5% above $3,000 (the chart for letter M uses $1,000 and $5,000). The year's tax is divided back across the paychecks.

A $60,000 Alabama salary takes home $1,841.57 every two weeks.

The calculator opens on this case: a single employee with exemption S and no dependents on the A-4, a standard Form W-4, paid every two weeks, with no pre-tax deductions.

Gross pay: $60,000 ÷ 26 = $2,307.69
Federal income tax: $193.08 a paycheck, $5,020.08 a year
Alabama income tax: $60,000 − $2,500 (standard deduction) − $5,020.08 (federal tax) − $1,500 (exemption S) = $50,979.92; 2% × $500 + 4% × $2,500 + 5% × $47,979.92 = $2,509.00; ÷ 26 = $96.50
Social Security: 6.2% × $2,307.69 = $143.08; Medicare: 1.45% = $33.46
Take-home pay: $1,841.57 a paycheck, $47,880.88 a year

Of $60,000 gross, $47,881 reaches the bank account.

Federal income tax$5,020 · 8.4%
Social Security$3,720 · 6.2%
Medicare$870 · 1.4%
Alabama income tax$2,509 · 4.2%
Take-home pay$47,881 · 79.8%

Each paycheck: $1,841.57Kept: 79.8%

A single employee on a $60,000 salary, paid every two weeks, with exemption S and no dependents. Invented example. Each tax is rounded to the cent in every paycheck, as payroll does.

The letter on the A-4 moves the Alabama tax of this paycheck from $91.46 to $99.38.

Form A-4 asks for its own letter: S for a single personal exemption of $1,500, M for both spouses' exemptions in one job ($3,000), H for head of family ($3,000), MS for a married employee who files separately and 0 for none. A married employee who claims M leaves the spouse to claim 0, and one who claims S leaves the spouse S or 0. The bars below also change the federal tax, because the filing status on the federal form changes with it.

The letter on the A-4 sets the Alabama tax of a biweekly paycheck, from $91.46 to $99.38.

0: no personal exemption$99.38
S: single$96.50
MS: married filing separately$96.50
H: head of family$95.68
M: married, both exemptions$91.46

Invented example: a $60,000 salary, paid every two weeks, no dependents, no pre-tax deductions. The federal Form W-4 status changes along with the letter.

Each dependent on the A-4 is worth $0.96 a paycheck at this pay, and less as pay rises.

A dependent other than a spouse takes $1,000 a year off while pay is up to $50,000, $500 up to $100,000 and $300 above. At $60,000 each one takes $500 off, which is $0.96 a paycheck at the 5% step, so the dependents on the A-4 matter much less than the letter does. With 4 dependents the $60,000 example withholds $92.65 of Alabama tax a paycheck.

Each dependent on the A-4 takes $0.96 off the Alabama tax of a biweekly paycheck at $60,000.

0 dependents$96.50
1 dependent$95.54
2 dependents$94.58
3 dependents$93.62
4 dependents$92.65

Invented example: a $60,000 salary, single, paid every two weeks. Each dependent is $500 of pay a year at this pay.

A 401(k) lowers the Alabama tax by only $6.09, because the federal tax Alabama deducts falls too.

The booklet lists cafeteria plans, retirement savings, 401(k) and 403(b) plans among the federal code sections Alabama recognizes, so those amounts are not part of the wages it withholds on. A 401(k) deferral of 6% on the $60,000 example is $138.46 a paycheck and lowers federal withholding by $16.62. Alabama takes that federal tax off the pay before its own rates apply, so it gives back most of its own saving: Alabama withholding falls only $6.09. Social Security and Medicare still apply to a 401(k) deferral, but not to health premiums or an HSA contribution made through a cafeteria plan.

A 6% 401(k) lowers federal tax by $16.62 and Alabama tax by $6.09 a paycheck.

Federal tax, no 401(k)$193.08
Federal tax, 6% 401(k)$176.46
Alabama tax, no 401(k)$96.50
Alabama tax, 6% 401(k)$90.41

Invented example: a $60,000 salary, single, paid every two weeks. 6% of pay is $138.46 a paycheck.

Local occupational taxes are collected by the city or county and are not in the state method.

The Department of Revenue says local occupational taxes are not administered by it: to find out about one, contact the city or county that collects it. This calculator does not include them, so subtract any that apply to you from the result.

Hiring that employee costs $64,848 a year in Alabama.

On top of the $60,000, the employer matches Social Security and Medicare at 6.2% and 1.45%, which is $4,590. It pays federal unemployment tax of 0.6% on the first $7,000, which is $42; Alabama is not on the Labor Department's list of states with a 2026 credit reduction. A newly liable Alabama employer pays unemployment tax at 2.7% on the first $8,000 of pay, which is $216.00 a year per employee. The employee pays nothing toward it.

On $60,000 of pay, the employer owes $4,848 more in taxes.

Employer Social Security$3,720
Employer Medicare$870
Alabama unemployment$216
Federal unemployment (FUTA)$42

An employee on a $60,000 salary. Alabama unemployment is the 2026 new-employer rate of 2.7% on the first $8,000.

Take-home pay in Alabama runs from $32,691 on $40,000 to $107,768 on $150,000.

For a single employee with exemption S and no dependents, paid every two weeks. At $100,000 the year's take-home is $75,078. For the neighbor to the east, see the Georgia paycheck calculator.

Take-home pay in Alabama for a single employee on a standard Form W-4, paid every two weeks, with no pre-tax deductions. Alabama taxes are its income tax.
Salary	Federal tax	Social Security and Medicare	Alabama taxes	Take-home a year	Every two weeks
$40,000	$2,620	$3,060	$1,629	$32,691	$1,257.35
$50,000	$3,820	$3,825	$2,069	$40,286	$1,549.47
$60,000	$5,020	$4,590	$2,509	$47,881	$1,841.57
$75,000	$7,670	$5,738	$3,127	$58,466	$2,248.69
$100,000	$13,170	$7,650	$4,102	$75,078	$2,887.63
$150,000	$24,734	$11,475	$6,023	$107,768	$4,144.91

Methodology & sources

The formula this calculator uses is shown in full above, and every assumption is an input you control. There are no hidden industry presets. All math runs in your browser; nothing you enter is stored or sent to a server. For the reasoning behind the formula and its edge cases, see:

Frequently asked questions

How does Alabama work out the income tax taken from my paycheck?: The Department of Revenue's formula has your employer turn the paycheck into a year of pay, then take off four things: a standard deduction, the federal income tax withheld from this paycheck times the number of pay periods, a personal exemption and your dependents. The rest is taxed at 2% on the first $500, 4% on the next $2,500 and 5% above $3,000. For a $60,000 salary, single, that is $60,000 less $2,500, less $5,020.08 of federal tax, less $1,500, $50,979.92 taxable, $2,509.00 of tax and $96.50 a paycheck.
How much is $60,000 a year after tax in Alabama?: For a single employee on a standard Form W-4 and Form A-4 exemption S, paid every two weeks, a $60,000 salary takes home $1,841.57 a paycheck, or $47,880.88 a year. The year's taxes are $5,020.08 of federal income tax, $2,509.00 of Alabama income tax, $3,720.08 of Social Security and $869.96 of Medicare.
How much is $20 an hour after tax in Alabama?: At 40 hours a week and weekly pay, $20 an hour is $800.00 gross and $652.04 take-home a week for a single employee. That is $54.08 of federal income tax, $32.68 of Alabama income tax, $49.60 of Social Security and $11.60 of Medicare. Switch to hourly in the calculator to type your own hours, including overtime.
Why does Alabama take your federal tax off before it taxes your pay?: Alabama lets the federal income tax withheld from each paycheck come off the pay before the state rates apply, so a worker whose federal tax is higher has less Alabama tax. On the $60,000 example the $193.08 of federal tax withheld a paycheck takes $5,020.08 a year out of the pay the state taxes. It also means anything that lowers your federal withholding, such as a 401(k) deferral, lowers the deduction too.
What do the letters 0, S, M, H and MS mean on the Alabama Form A-4?: They set the personal exemption and the standard deduction. S (single) takes $1,500, M (married, claiming both exemptions) and H (head of family) take $3,000, MS (married filing separately) takes $1,500 and 0 takes none. On the $60,000 example the Alabama tax is $96.50 a paycheck with S, $99.38 with 0, $95.68 with H and $91.46 with M. If an employee gives no Form A-4, the employer withholds as if the employee claimed zero. The federal Form W-4 is not a substitute.
How much is a dependent worth on the Alabama Form A-4?: Each dependent other than a spouse takes $1,000 off a year of pay when your income is up to $50,000, $500 up to $100,000 and $300 above, so it is worth less as you earn more. On the $60,000 example each takes $500 off, and 2 dependents lower the Alabama tax from $96.50 to $94.58 a paycheck, $1.92 less.
How does Alabama tax a bonus?: The booklet says employers may withhold state income tax from bonuses and supplemental wage payments at the rate of 5%. This calculator treats all pay as regular pay, and the bonus tax calculator works out the bonus case.
What if I live in another state but work in Alabama?: An Alabama employer withholds from a nonresident employee only on the wages earned in Alabama, and an Alabama resident employer withholds from a resident employee on all wages, unless it is already withholding another state's tax for the work. Since Act 2025-334, an out-of-state worker who performs services in Alabama for 30 days or fewer in a calendar year is not taxed on those earnings: the employee and employer keep paying and withholding for the home state if it has an income tax.
What does a 401(k), an HSA or a health plan do to my Alabama paycheck?: The booklet lists cafeteria plans (Section 125), retirement savings (Section 219), 401(k) plans and 403(b) plans among the federal code sections Alabama recognizes, so amounts excluded under them are not part of the wages Alabama withholds on. This calculator takes a 401(k) deferral, health premiums through a cafeteria plan and HSA contributions through one out of the pay first. Putting 6% of a $60,000 salary into a 401(k) ($138.46 a paycheck) cuts Alabama withholding by only $6.09, because the federal tax Alabama deducts also falls $16.62, and take-home pay by $115.75. A $100 HSA contribution a paycheck cuts Alabama withholding by $4.40.
Who pays unemployment tax in Alabama, and how much is it?: The employer does, to the Department of Workforce, and nothing comes out of your paycheck for it. It is due on the first $8,000 paid to each employee in a calendar year. A newly liable employer pays 2.7%, which is $216.00 a year per employee, and after that the rate comes from an experience rating that runs from 0.59% to 6.19%. Alabama is not on the Labor Department's list of states with a 2026 federal credit reduction.

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