Alabama Payroll Tax Calculator 2026
Calculate Alabama state income tax, federal withholding, Social Security, Medicare, and net take-home pay.
2026 Alabama tax rates · FICA · Alabama A-4
State Income Tax
Up to 5% (progressive)
Social Security
6.2%
Medicare
1.45%
State Form
Alabama A-4
Calculate Your Alabama Paycheck
Enter your salary or hourly rate and get a full breakdown: Alabama state tax, federal income tax, Social Security, Medicare, and exact net pay.
Open Alabama Payroll Tax CalculatorFree · No signup · 2026 IRS & AL rates
Alabama Tax Guide
Alabama Payroll Tax Overview 2026
Alabama uses a progressive income tax with a top rate of 5%. Higher earners pay a larger percentage of their income — different brackets apply to different income ranges.
Alabama has a progressive income tax with three brackets: 2% up to $500, 4% on $501–$3,000, and 5% on income over $3,000. Most workers hit the 5% top bracket quickly.
Alabama's low bracket thresholds mean most full-time workers pay the full 5% rate on almost all of their income.
Alabama Payroll Tax Summary
State Income TaxUp to 5% (progressive)
Tax TypeProgressive (brackets)
Social Security6.2% on first $176,100
Medicare1.45% (+ 0.9% over $200K)
FUTA (employer)0.6% on first $7,000
Employee FormAlabama A-4
FAQ
Alabama payroll tax questions
What is the top Alabama income tax rate for 2026?
Alabama's top income tax rate is 5% for 2026. This is a marginal rate — it only applies to income above the top bracket threshold. Lower income falls into lower brackets. Use the calculator above to see your effective rate.
What taxes do Alabama employees pay on their paycheck?
Alabama employees pay: (1) Federal income tax (based on W-4 withholding); (2) Social Security tax (6.2% on wages up to $176,100); (3) Medicare tax (1.45%, plus 0.9% on income over $200,000); (4) Alabama state income tax (Up to 5% (progressive)); The employer matches the Social Security and Medicare portions.
What payroll withholding form do Alabama employees use?
Alabama employees complete Alabama A-4 for state withholding in addition to the federal W-4. Employers use both forms to calculate the correct combined withholding amount.
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