Alabama Taxes

Learn more about Alabama taxes, including what Alabama income tax rate is and how to pay it here.

What is Alabama State Tax?

Alabama state tax is levied by the state on your income or what you earn within a tax year. State income tax rates vary by state.

Who Pays Alabama State Tax? 

Just like the federal government, Alabama imposes an income tax on your earnings if you live or work in the state. So, as a traditional W-2 employee, Alabama income taxes will be withheld and deposited on each paycheck automatically. You will see this on your paycheck, near or next to the federal taxes.

If you work remotely, you should pay taxes to the state in which the work is performed. Employers will generally also pay taxes on wages paid to these workers to the same state, even if the employer has no physical presence in that state. However, some states may require that workers are taxed based on their employer’s location.

How Do You Pay Alabama Income Taxes? 

To pay Alabama income taxes, visit the Alabama Department of Revenue website.

How Much Should You Pay in Al State Tax?

View Alabama tax rates.

When Are Al Tax Returns Due? 

The AL tax deadlines coincides with the federal tax deadline. View the tax deadlines for the state of Alabama here.

How Do You Check If You Paid Alabama State Taxes? 

If you want to make sure your state taxes were paid, contact the Alabama Department of Revenue.

Deducting Alabama Income Taxes

If you pay Alabama income tax, the IRS allows you to claim a deduction on your federal tax return for them. You can claim a state income tax deduction if you itemize deductions on your federal return.

If, you are single you can claim a standard deduction of $12,200 on your federal return. So, if you pay more than that in Alabama income tax and other itemized deductions, then consider itemizing your taxes.

Note: Due to the Tax Cuts and Jobs Act, state and local tax deductions, including state income taxes, are limited to $10,000 per year.

More Help With AL State Tax

Understanding your tax obligation can be confusing. What’s even more confusing is how to deduct AL state tax from your federal taxes as an itemized deduction.

So, get help with H&R Block Virtual! With this service, we’ll match you with a tax pro with Alabama tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your AL taxes, including federal deductions for paying state taxes.

Prefer a different way to file? No problem – you can find Alabama state tax expertise with all of our ways to file taxes.