Subtract the nontaxable biweekly Federal Health Benefits Plan payment (s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1. Disclaimer: While we do our best to keep this list of Alabama income tax rates up to date and complete, we cannot be held liable for errors or omissions. Business Privilege Tax Cap. The Alabama Department of Revenue will efficiently and effectively administer the revenue laws in an equitable, courteous, and professional manner to fund governmental services for the citizens of Alabama. These rates range from 2% to 5%. However, rates could be higher depending on where in Alabama you live or work, as local governments can also collect income taxes ranging from 0% to 2%. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the tax data we present. State Tax Tables | Click on any state in the map below for a detailed summary of state taxes on income, property, and items you buy on a daily basis. It appears you don't have a PDF plugin for this browser. This site is a free public service not affiliated with the IRS or any governmental organization. My Alabama Taxes My Alabama Taxes is currently unavailable. Content © 2021 Tax-Brackets.org, all rights reserved. computing Alabama taxable income in accordance with §40-18-15.” Ala. Code §40-18-14, in referring to the term gross income for nonresident individuals, states: The term “gross income,” in the case of a resident individual, includes income from sources within and outside Alabama, and in the The current values of these deductions for tax year 2020 are as follows: The standard deduction, which Alabama has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. 3. Are other forms of retirement income taxable in Alabama? These are called insured wages. Alabama - Married Filing Jointly Tax Brackets, For earnings between $0.00 and $500.00, you'll pay, For earnings between $500.00 and $3,000.00, you'll pay, For earnings over $3,000.00, you'll pay 5% plus, For earnings between $0.00 and $1,000.00, you'll pay, For earnings between $1,000.00 and $6,000.00, you'll pay, For earnings over $6,000.00, you'll pay 5% plus, The Alabama tax brackets on this page were last updated from the, Before the official 2021 Alabama income tax brackets are released, the brackets used on this page are an, The Alabama income tax estimator tool is provided by. Let us know in a single click, and we'll fix it as soon as possible. The term “income” includes, but is not limited to: Wages including salaries, fringe benefits, bonuses, commissions, fees, and tips. Like the Federal Income Tax, Alabama's income tax allows couples filing jointly to pay a lower overall rate on their combined income with wider tax brackets for joint filers.. View Sitemap. File your Alabama and Federal tax returns online with TurboTax in minutes. We last updated Alabama Form 40 Tax Table in January 2020 from the Alabama Department of Revenue. 5% on all taxable income over $3,000. Residents and nonresident of following four local jurisdiction within the state of Alabama pay a flat city income tax as per rates given below in addition to the Alabama income tax and the Federal income tax. States often adjust their tax brackets on a yearly basis, so make sure to check back later for Alabama's updated tax year 2021 tax brackets! . The Federal income tax also has a standard deduction, personal exemptions, and dependant deductions, though they are different amounts than Alabama's and may have different rules. If you have tax-related questions, call 1-334-242-1170 or submit a help request online. Beginning January 1, 1998, all tuition benefits received from the Alabama Prepaid Affordable College Tuition (PACT) program. Childcare providers. Withholding Formula >(Alabama Effective 2016)<. What are some basics of Alabama state taxes? When calculating your Alabama income tax, keep in mind that the Alabama state income tax brackets are only applied to your adjusted gross income (AGI) after you have made any qualifying deductions. Likewise, you can take an additional dependent exemption for each qualifying dependent (like a child or family member), who you financially support. Help us keep Tax-Brackets.org up-to-date! Is info on this page missing or out-of-date? Federal Tax Brackets | If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you'll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). Alaska. Alabama has the second lowest average effective property tax rate in the country, and its income tax rates range from just 2% to 5%, lower than most other states that have an income tax. Usage is subject to our Terms and Privacy Policy. For comparison purposes, however, your Alabama tax bracket is the tax bracket in which your last earned dollar in any given tax period falls. $25,300-25,350 taxable income line. Some types of retirement income are taxed in Alabama. The rates range from $0.25 to $1.75 for each $1,000 of net worth in Alabama. Where's My Refund? Let us know in a single click, and we'll fix it as soon as possible. Head over to the Federal income tax brackets page to learn about the Federal Income Tax, which applies in all states nationwide. Include an itemized deduction, the income alabama taxable income chart and the filing status column meet is $ 148.50 for. Safer than filling out paper tax forms the standard Part B premium.... 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