How Alabama withholding works
The Department of Revenue’s formula:
- Annual gross income = pay per paycheck × paychecks per year.
- Subtract the standard deduction (single: $3,000 up to $25,999, sliding down to $2,500 from $35,500; married $8,500 → $5,000; head of family $5,200 → $2,500), your annual federal withholding, the personal exemption ($1,500 single, $3,000 married or head of family) and $1,000/$500/$300 per dependent.
- Tax: 2%, 4% and 5% bands.
- Divide by the number of paychecks.
The department’s example – $850 weekly, married with two dependents and $35.19 federal withholding – gives $29.59 a week. This calculator reproduces it.
Birmingham and several other Alabama cities and counties also collect occupational taxes on wages, which are not included.
Worked example: $60,000 in Alabama
Single, $60,000 salary, paid every two weeks, Alabama
Gross pay is $2,307.69 per paycheck. Federal income tax is $193 and Social Security and Medicare $177. Alabama withholds $97. Take-home pay is $1,842 per paycheck, or $47,881 a year.
- Take-home pay per year
- $47,881
- Federal income tax withheld
- $193.08
- Alabama income tax withheld
- $96.502%–5% brackets
| Item | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | −$193.08 | −$5,020.08 |
| Social Security (6.2%) | −$143.08 | −$3,720.08 |
| Medicare (1.45%) | −$33.46 | −$869.96 |
| Alabama income tax | −$96.50 | −$2,509.00 |
| Take-home pay | $1,841.57 | $47,880.88 |
At $100,000 a year, take-home pay is about $75,078 a year.