Alabama State Income Tax
Tax Year 2023
1.1 -
Contents
1.
Alabama Income Tax Table
Tax Bracket (Single) [2] | Tax Bracket (Couple) [3] | Marginal Tax Rate |
$0+ | $0+ | 2.000% |
$500+ | $1,000+ | 4.000% |
$3,000+ | $6,000+ | 5.000% |
Note: We don't currently have Alabama's income tax brackets for tax year 2024. Until updated 2024 tax rates become available for Alabama, the tax brackets shown above and used in the income tax calculator will be from tax year 2023.
Learn how marginal tax brackets work
2.
Alabama Income Tax Calculator
3.
The Alabama Income Tax
Alabama collects a state income tax at a maximum marginal tax rate of %, spread across tax brackets. Like the Federal Income Tax, Alabama's income tax allows couples filing jointly to pay a lower overall rate on their combined income with wider tax brackets for joint filers.
Notably, Alabama has the highest maximum marginal tax bracket in the United States. You can learn more about how the Alabama income tax compares to other states' income taxes by visiting our map of income taxes by state.
Alabama, as well as several other states, effectively double bracket widths for married couples filing jointly. In addition, Alabama allows some or all of federal income tax paid to be deducted from state taxable income.
For lower-income filers, the Alabama Standard Deduction is reduced to 20% of their declared income if this amount is less then their applicable standard deduction. Additionally, the Alabama Dependent Exemption amount varies based on taxable income. The dependent exemption is $1,000 for taxpayers with a state AGI of $20,000 or less, $500 with an AGI from $20,001 to $100,000, and $300 with AGI over $100,000.
There are 151 days left until Tax Day, on April 16th 2025. The IRS will start accepting eFiled tax returns in January 2020 - you can start your online tax return today for free with TurboTax .
4.
Alabama Tax Deductions
Income tax deductions are expenses that can be deducted from your gross pre-tax income. Using deductions is an excellent way to reduce your Alabama income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and Alabama tax returns. For details on specific deductions available in Alabama, see the list of Alabama income tax deductions.
4.1 - Alabama Standard Deduction
- Unlike many other states, Alabama has no standard deduction. Certain itemized deductions (including property tax, qualified charitable contributions, etc) may be allowed depending on the income level and filing type of the taxpayer. Keep in mind that not all deductions allowed on your federal income tax return are necessarily going to be allowed on your Alabama income tax return.
4.2 - Alabama Personal Exemptions
- Alabama has no personal exemption. The Federal Income Tax, however, does allow a personal exemption to be deducted from your gross income if you are responsible for supporting yourself financially.
4.3 - Alabama Dependent Deduction
- Unlike most states, Alabama does not have a dependent deduction. You can, however, claim dependent deductions on your Federal Tax Return.
4.4 - Alabama Itemized Deductions
- Alabama allows itemized deductions, and you can claim the same itemized deductions on your Alabama tax return as you do on your Federal tax return. You must choose between itemizing your deductions and choosing the Alabama standard deduction, so it's generally only worth itemizing your deductions if your itemized total is more then the Alabama and Federal standard deductions. For more details, visit the list of Alabama itemized deductions.
5.
Alabama Income Tax Forms
Tax-Rates.org provides easy access to three of the most commonly used Alabama income tax forms, in downloadable PDF format. For all of the tax forms we provide, visit our Alabama tax forms library or the 's tax forms page.
6.
How To File Your Alabama Income Tax Return
7.
Where To Send Your Alabama Tax Return
Tax Return With Payment Alabama Department of Revenue P. O. Box 2401 Montgomery, AL 36140 -0001 |
Tax Return Without Payment Alabama Department of Revenue P.O. Box 154 Montgomery, AL 36135-0001 |
8.
e-Filing: Submit Your Alabama Tax Return Online
You can save time and money by electronically filing your Alabama income tax directly with the . Benefits of e-Filing your Alabama tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.
Alabama encourages taxpayers to submit their Alabama income tax returns through the e-File system, and usually processes tax refunds for e-Filed returns in two weeks or less.
Almost all Alabama Department of Revenue tax forms can be electronically submitted through Alabama's e-File system. The following forms are accepted: Form 40 (Alabama Individual Income Tax Return), Alabama Schedule A (Itemized Deductions), Alabama Schedule B (Interest and Dividend Income ), Federal Schedule C (Profit or Loss From Business ), Federal Schedule C EZ (Net Profit From Business ), Alabama Schedule D (Profit from Sale of Real Estate, Stocks, etc. ), Alabama Schedule E (Supplemental Income and Loss (Rental Property, Partnerships, S Corporations, Estates and Trusts) ), Alabama Schedule NOL-85 (Computation of Net Operating Loss ), Alabama Schedule NOL-85A (Net Operating Loss Carryback/Carryforward ), Federal Schedule F (Farm Income ), Alabama Schedule CR (Credit for Taxes Paid to Other States ), Alabama Form 4952A (Investment Interest ), Federal Form 2106 (Employee Business Expenses ), Federal Form 2106 EZ (Employee Business Expense (Short Form) ), Federal Form 3903 (Moving Expenses ), Federal Form 4562 (Depreciation and Amortization ), Federal Form 4684 (Casualty Losses ), Federal From 6252 (Installment Sale Income, and ), Federal Form 8283 (Noncash Charitable Contributions ), and Federal Form 8829 (Expenses for Business Use of Home.
To e-file your Alabama and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies.
The two most popular tax software packages are H&R Block At Home, sold by the H&R Block tax preparation company, and TurboTax Federal & State, sold by the Intuit software company. Both companies produce multiple editions for simple to very complex tax returns, so be sure to carefully compare the features offered by each package.
9.
Getting Your Alabama Tax Refund
If your state tax witholdings are greater then the amount of income tax you owe the state of Alabama, you will receive an income tax refund check from the government to make up the difference.
It should take one to three weeks for your refund check to be processed after your income tax return is recieved. E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible.
Once you've filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Alabama tax refund, you can visit the Alabama Income Tax Refund page.
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10.
References
- Our state ranking and income tax figures are based on a family of four (married parents with two children) earning the national median household income of $50,000 per year. Deductions and personal exemptions are taken into account, but some state-specific deductions and tax credit programs may not be accounted for.
- Before the official 2024 Alabama income tax rates are released, provisional 2024 tax rates are based on Alabama's 2023 income tax brackets.
- The 2024 state personal income tax brackets are updated from the Alabama and Tax Foundation data.
- Alabama tax forms are sourced from the Alabama income tax forms page, and are updated on a yearly basis. Please make sure the Alabama forms you are using are up-to-date.