Income Tax Rates Alabama

Alabama has three marginal tax brackets ranging from 2 the lowest alabama tax bracket to 5 the highest alabama tax bracket.

Income tax rates alabama. Alabama s income tax brackets were last changed twelve years ago for tax year 2008 and the tax rates have not been changed since at least 2001. The alabama tax rate and tax brackets are unchanged from last year. Alabama is no exception to the rule as its tax brackets were previously updated back in 2008 while the tax rates witnessed an even earlier update in 2001. Each marginal rate only applies to earnings within the applicable marginal tax bracket.

Tax brackets and tax rates are ever changing as the cost of living increases over time. The alabama income tax has three tax brackets with a maximum marginal income tax of 5 00 as of 2020. Alabama state tax rates are at 2 4 and 5. Alabama income tax rate 2019 2020.

The top rate can never exceed 5 because of the limit imposed by the state constitution. Alabama state income tax rate table for the 2019 2020 filing season has three income tax brackets with al tax rates of 2 4 and 5 for single married filing jointly married filing separately and head of household statuses. Your adjusted gross income and filing status.