United States · State income tax
Alabama state income tax rate 2027.
The Alabama schedule from the state’s own revenue page, applied to your taxable income for 2026 and a projected 2027.
Short answer: Alabama taxes taxable income at 2%, 4% and 5%. Single filers pay 5% on everything above $3,000; joint filers pay 5% above $6,000. No change for 2027 is enacted in the sources read, so 2027 is projected to match 2026.
Estimate your tax
Result
Enter your Alabama taxable income and press Estimate.
The Alabama schedule
Alabama has three brackets. For single, head of family and married-filing-separate returns the rate is 2% on the first $500 of taxable income, 4% on the next $2,500 and 5% on all taxable income over $3,000. For a joint return the bands double and then some: 2% on the first $1,000, 4% on the next $5,000 and 5% over $6,000. The Department of Revenue page lists these as fixed dollar amounts, so the top 5% rate applies to modest incomes.
Single filers
| Taxable income, 2026 | Rate |
|---|---|
| $0 to $500 | 2% |
| $500 to $3,000 | 4% |
| Over $3,000 | 5% |
Joint filers
| Taxable income, 2026 | Rate |
|---|---|
| $0 to $1,000 | 2% |
| $1,000 to $6,000 | 4% |
| Over $6,000 | 5% |
Deductions, exemptions and local tax
Alabama lets you subtract a personal exemption before the brackets apply: $1,500 for a single return, $3,000 for a joint return and for head of family, and $1,500 for married filing separately (Alabama Department of Revenue). Tax Foundation’s January 2026 table also lists an income-scaled standard deduction ($3,000 for single filers with Alabama AGI up to $25,499, shrinking as income rises) and notes that Alabama allows a deduction for federal income tax paid. Those deductions come off before you reach the “taxable income” this page asks for.
Some Alabama cities and counties add their own occupational or income taxes; Tax Foundation puts the average local income tax at about 0.07% of AGI. The estimator does not add them.
What changes in 2027 (projected)
The Alabama Department of Revenue page lists no 2027 change, and the sources read for this page show no enacted 2027 rate or bracket change. The 2027 column therefore carries the 2026 schedule forward. It is a projection: if the legislature acts in its 2027 session, the real 2027 schedule can differ.
Worked example (2026 schedule)
A single filer with $60,000 of Alabama taxable income owes $2,960 under the 2026 schedule, an effective rate of 4.93% and a top marginal rate of 5%. A joint filer with $90,000 owes $4,420 (4.91% effective, 5% marginal). The 2027 projection for the same incomes is the same dollar amount until the state publishes new brackets.
Method
The tool applies each bracket rate only to the slice of income inside that bracket, adds the slices and divides by income for the effective rate. The 2027 line uses the same schedule and is shown as projected. Nothing you type is sent to our servers; the maths runs in your browser. For a full paycheck including federal and payroll taxes, use the paycheck calculator, and for comparing states see the state income tax calculator.
What this does not cover
- Deductions, exemptions and credits. Enter income after them.
- Part-year or nonresident returns, and income taxed at special rates.
- Local income taxes and surtaxes beyond the bracket schedule.
- Any 2027 law change that has not been enacted yet. The 2027 column is a projection from 2026.
Rates and bands read on the Alabama Department of Revenue page (Internet Archive copy, November 2, 2026). Deduction notes are Tax Foundation’s summary of the state forms.
Sources
Frequently asked questions
What is the Alabama state income tax rate for 2027?
Alabama has not published a 2027 schedule, so the 2027 figures on this page are projected by carrying forward the 2026 rates (2%, 4%, 5%). The section on what changes in 2027 explains what could move them.
What is the top Alabama income tax rate?
5% under the 2026 schedule. It starts at $3,000 of taxable income for single filers and $6,000 for joint filers.
How much Alabama income tax would I pay on $60,000?
A single filer with $60,000 of Alabama taxable income owes $2,960 under the 2026 schedule, an effective rate of 4.93% and a top marginal rate of 5%. The estimator above runs your own figure.
Does this page include deductions or credits?
No. It applies the rate schedule to the taxable income you enter, so subtract your deductions and exemptions first. It does not model credits, local taxes or surtaxes.
Is the 2027 result a forecast?
It is a projection. It carries the 2026 schedule forward and is labelled projected wherever it appears. Alabama can change its rates or indexed brackets before the 2027 forms are issued.
Where does the information on this page come from?
Rates and bands read on the Alabama Department of Revenue page (Internet Archive copy, November 2, 2026). Deduction notes are Tax Foundation’s summary of the state forms. The links in the Sources section go to the originals.
Does Alabama let me deduct federal income tax?
Tax Foundation’s January 2026 table flags Alabama as a state that allows some or all of federal income tax paid to be deducted from state taxable income. Check the Alabama return instructions for the exact rule before you rely on it.
Not legal or tax advice
Rates change and this is an unofficial guide, not run by any state tax agency; the 2027 figures are projections. Nothing you type is transmitted anywhere. Confirm with the Alabama tax agency or a tax professional before you file.