Alabama Tax Tables for 2026
The 2026 Alabama Tax Tables summarise the state-level rules applied to wages, deductions, credits and taxable income. These tables match the rules used by the Alabama State Tax Calculator 2026.
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Alabama Tax Tables for 2026
The tables below outline the income tax structure, deduction amounts, state-level credits and payroll-related rules used for Alabama in 2026. Alabama uses filing-status–specific progressive income tax tables. Income is divided into brackets and each portion is taxed at its marginal rate. The table below shows the full structure for this filing status. For a full explanation of marginal brackets, see our Tax Tables guide.
Single – Progressive Tax Brackets (2026)
Marginal income tax brackets for Single filers in Alabama for 2026. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 500.00 | 2% |
| 2 | $ 500.00 to $ 3,000.00 | 4% |
| 3 | $ 3,000.00 and over | 5% |
Married filing jointly – Progressive Tax Brackets (2026)
Marginal income tax brackets for Married filing jointly filers in Alabama for 2026. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 1,000.00 | 2% |
| 2 | $ 1,000.00 to $ 6,000.00 | 4% |
| 3 | $ 6,000.00 and over | 5% |
Married filing separately – Progressive Tax Brackets (2026)
Marginal income tax brackets for Married filing separately filers in Alabama for 2026. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 500.00 | 2% |
| 2 | $ 500.00 to $ 3,000.00 | 4% |
| 3 | $ 3,000.00 and over | 5% |
Head of household – Progressive Tax Brackets (2026)
Marginal income tax brackets for Head of household filers in Alabama for 2026. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 500.00 | 2% |
| 2 | $ 500.00 to $ 3,000.00 | 4% |
| 3 | $ 3,000.00 and over | 5% |
Widowed – Progressive Tax Brackets (2026)
Marginal income tax brackets for Widowed filers in Alabama for 2026. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 500.00 | 2% |
| 2 | $ 500.00 to $ 3,000.00 | 4% |
| 3 | $ 3,000.00 and over | 5% |
Alabama Standard Deduction(2026)
State-level standard deduction amounts for each filing status.
| Filing Status | Amount |
|---|---|
| Single | $3,000 |
| Married filing jointly | $8,500 |
| Married filing separately | $4,250 |
| Head of household | $5,200 |
| Widowed | $8,500 |
Recent Updates – Alabama State Tax
The following summarizes key legislative, administrative and procedural changes affecting the 2026/27 Alabama tax year and upcoming return filings. These updates reflect recent guidance from the Alabama Department of Revenue (ADOR), statutory amendments, and adjustments to income tax credits and supporting schedules.
- No Change to Alabama Individual Income Tax Rates – Alabama continues to apply its three-bracket structure for individuals and joint filers, with no rate increases for 2026/27. The Legislature maintained the existing thresholds, ensuring filing consistency and predictable liabilities for most residents.
- Schedule OC Credit Framework Expanded & Clarified – ADOR issued updated instructions for Schedule OC, reinforcing reporting requirements for the Growing Alabama, Innovate Alabama, and Dual Enrollment credits. New guidance emphasizes accurate carryforward tracking and the requirement to attach supplemental certificates for project-based credits.
- Revised Guidance for Estimated Tax Requirements – Updated ADOR publications confirm that Form AL-40ES must be filed when taxpayers expect to owe $500 or more after withholding and credits. Safe-harbour rules (90% of current liability or 100%/110% of prior-year liability) remain unchanged, but ADOR has emphasized earlier mid-year adjustment filing for those with fluctuating income.
- Enhancements to Alabama Accountability Act Credit Processes – For 2026/27, Scholarship Granting Organizations (SGOs) must follow revised electronic reporting standards. Taxpayers filing Schedule AATC should ensure scholarship contribution receipts match the updated ADOR format to avoid processing delays.
- Capital Credit (Schedule KRCC-I) Administrative Updates – ADOR and the Alabama Department of Commerce clarified documentation requirements for the Income Tax Capital Credit. Taxpayers relying on Schedule KRCC-I must retain updated certificate documentation and entity-provided allocation letters to validate current-year credit amounts and carryforwards.
- Home Buyer Savings Account Deduction Clarifications – Alabama reaffirmed eligibility rules for the First-Time and Second-Chance Home Buyer Savings Account deduction reported on Schedule HBC. ADOR highlighted contribution documentation and beneficiary verification due to increased audit focus in this area.
- Updated Withholding Guidance & MAT Portal Enhancements – Significant enhancements were made to the My Alabama Taxes system, improving electronic filing for vouchers and payments. This includes simplified processing for Form AL-40V and Form AL-40NRV, along with improved integration for electronic extension payments.
- Increased Scrutiny of Dependents & Filing Status Claims – Due to rising error rates, ADOR has increased review of dependency claims filed through Schedule DS and Head of Family submissions made via Schedule HOF. Taxpayers should maintain residency, support and relationship documentation for each claimed dependent.
These changes reflect Alabama’s continued focus on compliance accuracy, transparent credit administration, and improved digital filing efficiency. All Alabama calculators have been updated to reflect the latest statutory guidance, credit limitations, thresholds and processing rules for 2026/27.
Alabama Tax Tables for Related Years
These related years are often reviewed together for comparing bracket changes, deductions and Alabama updates:
Frequently Asked Questions
What is Alabama Schedule KRCC-I used for?
Schedule KRCC-I is required for taxpayers who receive a share of the Alabama Capital Credit from qualifying industrial or commercial projects. This credit, established to encourage economic development, allows project investors or pass-through entity members to apply a portion of the approved credit to their Alabama individual income tax. Schedule KRCC-I documents the project name, certificate number, annual credit share, carryforward amounts and the portion being applied to the current year’s income tax liability. The form ensures that taxpayers do not exceed their allowable credit and provides Alabama with an audit trail linking each credit claim to the certified project under the Alabama Capital Credit Act.
What documentation should taxpayers keep to support KRCC-I claims?
Taxpayers must retain the original Alabama Capital Credit certificate, pass-through K-1 statements showing their credit allocation, project approval letters from the Alabama Department of Commerce, prior-year KRCC-I schedules reflecting carryforward balances and the certified project number. Supporting documentation must demonstrate the taxpayer’s ownership interest for each period in which the credit is claimed. While Alabama does not require filing all documents with the return, the Department of Revenue can request them at any time, and incomplete documentation may result in a denied or reduced credit. These records should be retained for the full credit duration, as claims may span up to 20 years.
How are bonuses withheld in Alabama?
Employers may use supplemental methods; totals reconcile on your annual return. Model as supplemental in the calculator.
Any millionaire or surcharge thresholds?
If applicable, they’re reflected in the Alabama bracket table and notes.
What happens if I start making payments late in the year?
If you begin making estimated payments after the first quarter, Alabama allows you to adjust the remaining payments. For example, if you start after April 1, divide the annual amount by three instead of four. The latest possible estimated payment date is January 15 of the following year for income earned in the current year.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.