Alabama

AL2026 Tax Data
Income Tax
5.0%
Sales Tax
4.00%
Property Tax
0.40%

Alabama Income Tax Brackets (2026)

RateSingle Filers
2.00%$0 - $500
4.00%$500 - $3,000
5.00%$3,000+

Alabama Tax Overview 2026

Alabama has a progressive income tax system with rates ranging from 2.00% to 5.00%. The state sales tax rate is 4.00% and property taxes average 0.40% of home value.

  • Sales Tax: Base rate 4.00%. Combined rate up to 11.00% with local taxes.
  • Groceries: Subject to full sales tax
  • Prescriptions: Exempt from sales tax
  • Clothing: Subject to sales tax
  • Property Tax: Effective rate of 0.40% on a median home value of $157,100

Alabama Tax FAQ

What is the income tax rate in Alabama for 2026?

Alabama's income tax rate ranges from 2.0% to 5.0% (progressive brackets). Use our Alabama income tax calculator above to estimate your specific tax.

What is the sales tax rate in Alabama?

The base state sales tax rate in Alabama is 4.00%. With local taxes, the combined rate can reach up to 11.00%. Groceries are generally subject to sales tax.

Does Alabama tax retirement income?

Alabama taxes retirement income such as pensions and 401(k) distributions as ordinary income. Check with a tax professional for specific retirement tax rules.

What is the standard deduction in Alabama for 2026?

The standard deduction for single filers in Alabama is $3,000 and $7,500 for married couples filing jointly.

How do Alabama tax rates compare to other states?

Alabama's top income tax rate of 5.0% is around the national average. Combined state and local sales tax rates in Alabama are 4.00%. Use our comparison tools to see how Alabama stacks up against neighboring states.