Alabama Payroll Calculator

Calculate employer payroll taxes, employee withholdings, and net pay in Alabama. Stay compliant with Alabama labor laws and tax regulations.

🗺️Why calculating in this state is different

Alabama has a progressive income tax system with relatively low property taxes but moderate sales tax rates across counties.

State Income Tax
2% - 5%
Base Sales Tax
4%
State Min Wage
$7.25 / hr
Abbreviation
AL
Alabama Business

This calculator uses the latest 2026 data for Alabama, including the minimum wage of $7.25/hr and the specific state income tax rates (2% - 5%).

$
State Tax Rate2% - 5%
📊State Details
State Income Tax
2% - 5%
Base Sales Tax
4%
State Min Wage
$7.25/hr
Abbreviation
AL
Net Income
$39,750.00
after taxes in Alabama
Gross Income
$75,000.00
Total Tax
$35,250.00
📈Key Metrics
Net Income
$39,750.00
after taxes
State Tax
$18,750.00
state income tax
Effective Tax Rate
47.0%
total tax burden
ℹ️Summary
Gross Income$75,000.00
Federal Tax$16,500.00
State Tax$18,750.00
Net Income$39,750.00
❓Frequently Asked Questions

How do I calculate payroll taxes in Alabama?

To calculate payroll taxes in Alabama, you must account for federal FICA taxes (Social Security and Medicare), federal unemployment (FUTA), Alabama state unemployment (SUTA), and Alabama state income tax withholding (2% - 5%).

What is the minimum wage for payroll in Alabama?

The current minimum wage in Alabama is $7.25 per hour. Employers must ensure all non-exempt employees earn at least this amount.

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