Alabama Income Tax Guide for 2024
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 $3,000 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) | $3,000 |
| Standard Deduction (Married Filing Jointly) | $8,500 |
| Personal Exemption (Single) | $1,500 |
| Personal Exemption (Married) | $3,000 |
| Dependent Exemption | $1,000 |
Additional Information
- Federal income tax deduction allowed
- Rates for 2024: 2% on the first $500 ($1,000 married filing jointly), 4% on the next $2,500 ($5,000), 5% above $3,000 ($6,000)
- Standard deduction shown is the 2024 maximum; it phases down with Alabama adjusted gross income to $2,500 single / $5,000 married filing jointly at income of $35,500 or more
- Dependent exemption is $1,000 per dependent if Alabama adjusted gross income is $50,000 or less, $500 from $50,001 to $100,000, and $300 above $100,000
Charts
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Sources
The 2024 figures for Alabama on this page were compiled from the following official government publications:
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