Alabama Paycheck Calculator 2026 – Estimate Your Take-Home Pay
Use our free Alabama Paycheck Calculator to estimate your net pay. Updated for the Alabama salary calculator 2026 tax season, this tool estimates your Alabama take-home pay after accounting for Federal withholding, FICA, and state taxes. Whether you are estimating a salary or calculating hourly wages, this Alabama net pay calculator helps you plan your finances accurately.
- Income Tax Rate: 2%, 4%, or 5% (Progressive)
- FICA Tax: 7.65% (Social Security + Medicare)
- Federal Tax: 10% – 37% (Based on brackets)
- Median Household Income: ~$59,600
How the Alabama Paycheck Calculator Works
Our Alabama tax calculator 2026 uses a standardized formula to convert your gross pay into net pay. We start with your gross salary and subtract:
- Federal Withholding: Based on your filing status and W-4.
- FICA Taxes: Mandatory contributions for Social Security (6.2%) and Medicare (1.45%).
- Alabama State Tax: Calculated using the 2%, 4%, and 5% tiered brackets.
Alabama Income Tax Brackets (2026)
Alabama uses a progressive income tax with three brackets. The effective tax rate in Alabama usually averages lower than 5% due to the lower initial brackets.
Single / Married Filing Separately / Head of Household
| Taxable Income Range | Tax Rate |
|---|---|
| $0 – $500 | 2.00% |
| $501 – $3,000 | 4.00% |
| Over $3,000 | 5.00% |
Married Filing Jointly
| Taxable Income Range | Tax Rate |
|---|---|
| $0 – $1,000 | 2.00% |
| $1,001 – $6,000 | 4.00% |
| Over $6,000 | 5.00% |
Federal Taxes That Apply to Your Paycheck
Federal Income Tax
The IRS imposes a progressive tax ranging from 10% to 37%. Your specific rate depends on your "Alabama tax brackets for single & married filers" status.
Social Security & Medicare
Also known as FICA, these are flat rates. Social Security takes 6.2% on income up to the wage base limit, and Medicare takes 1.45% on all income.
Alabama Paycheck After Taxes for $50,000 Salary
If you are a single filer living in Birmingham or Montgomery earning $50,000 per year:
| Tax Description | Amount |
|---|---|
| Federal Tax (Est.) | $4,241 |
| FICA (7.65%) | $3,825 |
| State Tax (Est.) | $2,225 |
| Estimated Take-Home Pay | $39,709 |
Minimum Wage & Cost of Living
Alabama adopts the federal minimum wage of $7.25 per hour. However, the cost of living is significantly lower than the national average, especially in housing and transportation.
How to Increase Your Take-Home Pay
To maximize your after-tax salary in Alabama, consider increasing pre-tax contributions to a 401(k) or HSA. This lowers your taxable income, reducing the amount subject to the 5% top state tax rate.
FAQs – Alabama Paycheck Calculator
How much is state income tax in Alabama 2026?
Alabama state tax rates are 2% on the first $500 (single), 4% on the next $2,500, and 5% on anything above $3,000. For married filers, brackets are doubled.
How much tax is taken from a paycheck in Alabama?
Total deductions usually range from 18% to 26%. This includes Federal Income Tax, FICA (7.65%), and Alabama State Tax (approx 4-5%).
Does Alabama tax overtime pay?
Generally, yes. However, Alabama implemented a temporary exemption for overtime pay from state income tax starting in 2024. Check the latest Department of Revenue guidance for 2026.
How do I calculate hourly to salary in Alabama?
To convert hourly to salary, multiply your hourly wage by 2,080 (40 hours x 52 weeks). For example, $15/hr equals $31,200 annually.