Alabama Paycheck Calculator 2026

An Alabama paycheck gets trimmed in four places before the deposit lands. The federal pieces are the same everywhere: federal income tax based on your W-4, Social Security at 6.2% on wages up to the $184,500 base, and Medicare at 1.45% with no cap. On top of that sits Alabama's own income tax, a graduated rate that climbs to a top bracket of 5%. Because the brackets are narrow, most full-time workers reach that 5% marginal rate fairly quickly, so the state line on your stub behaves almost like a flat deduction once you clear the lowest tiers.

What Alabama leaves alone matters too. There's no state disability insurance withholding and no state paid-family-leave premium, so you won't see those line items that workers in some other states do. The wrinkle is local: a number of Alabama cities and counties levy an occupational tax of roughly 0.5% to 2% on wages earned inside their limits, charged on top of state income tax. Whether your check carries that depends on where you physically work, not where you live.

On a $60,000 salary, Alabama's graduated income tax, topping out at 5%, costs up to roughly $3,000 a year before deductions — on top of $4,590 in federal FICA, which is the same in every state. 19 of the 42 states that tax income charge less than Alabama at the top rate.

The state minimum wage is $7.25/hr , matching the federal floor of $7.25 — about $15,080 a year at 40 hours a week. There is no state disability or paid-family-leave deduction, so nothing beyond income tax and FICA comes out at the state level. Local jurisdictions add their own layer on top — see the note below.