Labeled estimate
Alabama payroll tax rules, 2026
These figures are estimates built from published 2026 rates. Withholding is approximated from the yearly brackets; check Alabama's official withholding tables before filing.
State income tax withholding
Single
| Yearly taxable wages over | Rate |
|---|---|
| $0 | 2% |
| $500 | 4% |
| $3,000 | 5% |
Married
| Yearly taxable wages over | Rate |
|---|---|
| $0 | 2% |
| $1,000 | 4% |
| $6,000 | 5% |
- Standard deduction: $3,000 single, $8,500 married.
- Each exemption or allowance: $1,500 a year.
State unemployment (employer)
- Taxable wage limit: $8,000 per employee per year.
- New-employer rate used: 2.7%. Your state assigns your actual rate.
Federal taxes (every state)
- Social Security 6.2% employee + 6.2% employer, up to $184,500 of wages.
- Medicare 1.45% employee + 1.45% employer; extra 0.9% employee tax over $200,000.
- Federal unemployment (FUTA) 0.6% on the first $7,000 per employee.
Also good to know
- Some cities and counties levy local occupational taxes (not included).
- Federal income tax is deductible on the Alabama return (not modeled).
Sources: Tax Foundation — State Individual Income Tax Rates and Brackets, 2026; EY — State unemployment insurance wage bases and tax rates for 2026.
Calculate a Alabama paycheck