Alabama payroll · Department of Revenue booklet 2026

Alabama paycheck calculator.

Gross pay in, take-home pay out. Alabama income tax follows the Department of Revenue’s formula, which subtracts your federal withholding. Everything runs in your browser; nothing is sent or stored.

Your pay

Gross pay this period ($)

Pay frequency

Form A-4 exemption

Dependents other than spouse (Form A-4)$1,000 each up to $50,000 of annual pay, $500 up to $100,000, $300 above.

Pre-tax: lowers income tax and FICA ($ per period)For example Section 125 health premiums.

Pre-tax: lowers income tax only ($ per period)For example a traditional 401(k) deferral, which is still subject to Social Security and Medicare tax.

Local income or occupational tax (% of taxable wages, optional)A rate you supply. No local tax tables are built in.

Federal Form W-4 filing status

Federal W-4 Step 2 box is checked (two jobs)

Federal W-4 Step 3: credits, annual ($)

Federal W-4 Step 4(a): other income, annual ($)

Federal W-4 Step 4(b): deductions, annual ($)

Federal W-4 Step 4(c): extra withholding per period ($)

Wages already paid this year, before this check ($)Only matters near the $184,500 Social Security wage base or the $200,000 Additional Medicare threshold.

Estimated Alabama paycheck (2026)

Worked example

Biweekly gross $2,500, exemption S, no dependents, $100 section 125 premium and $150 traditional 401(k). Income-tax wages are $2,250. Federal income tax $186.15, Social Security $148.80 and Medicare $34.80 (the same federal figures as the U.S. Paycheck Calculator example).

Alabama: gross income $2,250 × 26 = $58,500. Deduct the $2,500 standard deduction, annual federal withholding $186.15 × 26 = $4,839.90 and the $1,500 personal exemption: taxable $49,660.10. Tax: 2% × $500 + 4% × $2,500 + 5% × ($49,660.10 − $3,000) = $2,443.01 a year, ÷ 26 = $93.96.
Take-home: $2,500 − $250 pre-tax − $186.15 − $148.80 − $34.80 − $93.96 = $1,786.29.

How it is calculated

Federal withholding is IRS Publication 15-T (2026) Worksheet 1A for a Form W-4 from 2020 or later, and Social Security (6.2% to $184,500), Medicare (1.45%) and Additional Medicare Tax (0.9% over $200,000) follow IRS Publication 15. The Alabama formula annualizes gross wages, then subtracts a standard deduction (for S or 0: $3,000 up to $25,999 of annual income, falling $25 for each $500 above that to $2,500 at $35,500; the M, MS and H schedules are in the booklet), the annual federal withholding, a personal exemption ($1,500 for S or MS, $3,000 for M or H) and a dependent amount. Tax is 2% on the first $500, 4% on the next $2,500 and 5% above $3,000 (for M: 2% on $1,000, 4% on the next $5,000, 5% above $6,000), divided by the number of pay periods. The booklet says Section 125 cafeteria-plan and 401(k) amounts are excluded from wages; the federal withholding used is the figure this calculator computes.

Assumption: the pre-tax amounts you enter reduce Alabama taxable wages the same way they reduce federal income-tax wages; your employer’s payroll setup controls the exact treatment. Not covered: W-4s from 2019 or earlier, the Department’s printed tables (rounded to the nearest dollar), the new overtime premium deduction (Act 2026-604) listed on the Department’s withholding page and local occupational or city taxes, and wage bracket method rounding. This is a planning estimate, not an official calculation or tax advice.

Sources and as-of dates

Alabama Administrative Code rule 810-3-71-.02, Computing Tax Withheld: the Form A-4 exemption codes (0, S, M, H, MS) and their values.
Alabama Department of Revenue withholding tax page: lists the Overtime Premium Deduction (Act 2026-604), which this tool does not model.
Alabama Withholding Tax Booklet (January 2026): Formula For Computing Alabama Withholding Tax, the standard deduction schedule, personal exemptions, dependent amounts, rate bands and the M-2 worked example; wages exclusions for sections 125 and 401(k).
IRS Publication 15-T (2026): dated Dec 3, 2025: Worksheet 1A and the annual Percentage Method tables used for federal withholding.
IRS Publication 15 (2026), Employer’s Tax Guide: dated Dec 15, 2025: 6.2% Social Security up to a $184,500 wage base, 1.45% Medicare, 0.9% Additional Medicare Tax over $200,000.
Figures retrieved October 16, 2026. States and the IRS republish these formulas, usually each January; this tool covers 2026 only. It does not look anything up from a government system.

FAQ

Why does my real paycheck differ from this estimate?

Employers may use printed Alabama tables instead of the formula, round differently, apply your exact Form W-4 entries and withhold local, disability, benefit and retirement amounts this tool does not model. Treat the result as an estimate, not tax advice.

Why does Alabama subtract my federal withholding?

The Department’s formula includes the employee’s annualized federal withholding among the amounts subtracted before the 2%, 4% and 5% rates are applied.

What do the Form A-4 letters mean?

0 is no personal exemption, S a single exemption, M exemptions for both spouses, H head of family (valued like M) and MS married filing separately (valued like S), per Alabama’s rule 810-3-71-.02.

What if I do not turn in a Form A-4?

An employer withholds as if the employee claimed zero exemptions when no signed certificate is provided, per the Department of Revenue rule.

Does a 401(k) deferral lower Social Security and Medicare tax?

No. Per IRS Publication 15, elective 401(k) deferrals are exempt from income tax withholding but remain subject to Social Security and Medicare tax. Section 125 cafeteria-plan benefits such as health premiums generally are not.