Alabama Data

2.50%
Income Tax Rates
5.0%
National Avg
January 2026
Updated
cost rank
33
has income tax
true

Nearby States

AlaskaArizonaArkansasCalifornia

Alabama Income Tax Rates (2026) — How It Compares to Other States

State income tax top marginal rate

Rates by State‹Income Tax Rates‹Alabama
StateIncome Tax Rates (tax rate)vs National
→ AlabamaRank #33 / 50-NaN%
→ Alabama$800-$2,000-NaN%
→ Alabama$150-$250/hr-NaN%
→ Alabama2.50%-50.0%
→ Alabama4.85%-3.0%
→ Alabama1.20% APY-0.0%
→ Alabama$150–$350-NaN%

Frequently Asked Questions

What are Alabama income tax rates in 2026?
Alabama income tax rates are currently 2.50% as of January 2026. The national average is 5.0%. Alabama is at or below the national average.
How do Alabama income tax rates compare to other states?
Alabama income tax rates of 2.50% compare to a national average of 5.0%. Rates vary by state based on local market conditions, legislation, and economic factors.
Where can I find the best income tax rates in Alabama?
Compare multiple providers and verify credentials before committing to any financial service in Alabama.
Does Alabama have a state income tax?
Yes — Alabama has a state income tax with a top marginal rate of 2.50%.

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