Alabama Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for Alabama. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
Income Tax
Alabama uses a progressive income tax with three rates from 2% to 5%. The 5% marginal rate applies above $3,000 of taxable income for single filers. A separate deduction for qualifying federal income-tax liability follows the state worksheet; it is not automatically the amount withheld or paid.
| Taxable Income | Rate |
|---|---|
| $0 - $500 | 2% |
| $500 - $3,000 | 4% |
| Over $3,000 | 5% |
Sales Tax
Eligible groceries generally have a 2% state sales tax. Alabama temporarily suspended that state tax from May 1 through June 30, 2026. Local sales taxes may apply separately. Prescription drugs are exempt. Combined rates shown are population-weighted July 1, 2026 estimates; actual item and local rates vary.
Alabama’s top marginal income-tax rate is 5%. A qualifying federal-income-tax deduction can reduce the state income base under the state worksheet; the amount depends on the filer’s facts.
What is the income tax rate in Alabama?
Alabama has a progressive income tax with rates of 2%, 4%, and 5%. The top rate of 5% applies to income over $3,000 for single filers.
Does Alabama tax groceries?
Eligible groceries generally have a 2% state sales tax. The state tax was temporarily suspended from May 1 through June 30, 2026. Check the local rate separately.
Can I deduct federal taxes on my Alabama return?
Alabama allows a separate deduction for qualifying federal income tax liability. The amount follows the state return worksheet. The calculator estimate does not apply that deduction.
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