Alabama Income Tax Guide for 2025
Overview
Alabama uses a progressive income tax system with rates ranging from 2% to 5%. Capital gains are taxed as ordinary income. The state offers a standard deduction of $4,500 for single filers, personal exemptions of $1,500, and dependent exemptions of $1,000.
Income Tax Rates
Single Filers
| Income Range | Tax Rate |
|---|---|
| Up to $499 | 2% |
| $500 - $2,999 | 4% |
| $3,000+ | 5% |
Married Filing Jointly
| Income Range | Tax Rate |
|---|---|
| Up to $999 | 2% |
| $1,000 - $5,999 | 4% |
| $6,000+ | 5% |
Capital Gains Tax
Capital gains are taxed at the same rates as ordinary income.
Deductions & Exemptions
| Type | Amount |
|---|---|
| Standard Deduction (Single) | $4,500 |
| Standard Deduction (Married Filing Jointly) | $11,500 |
| Personal Exemption (Single) | $1,500 |
| Personal Exemption (Married) | $3,000 |
| Dependent Exemption | $1,000 |
Additional Information
- Federal income tax deduction allowed
Charts
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