Alabama Tax Tables for 2016
The 2016 Alabama Tax Tables summarise the state-level rules applied to wages, deductions, credits and taxable income. These tables match the rules used by the Alabama State Tax Calculator 2016.
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Alabama Tax Tables for 2016
The tables below outline the income tax structure, deduction amounts, state-level credits and payroll-related rules used for Alabama in 2016. Alabama uses filing-status–specific progressive income tax tables. Income is divided into brackets and each portion is taxed at its marginal rate. The table below shows the full structure for this filing status. For a full explanation of marginal brackets, see our Tax Tables guide.
Single – Progressive Tax Brackets (2016)
Marginal income tax brackets for Single filers in Alabama for 2016. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 500.00 | 2% |
| 2 | $ 500.00 to $ 3,000.00 | 4% |
| 3 | $ 3,000.00 and over | 5% |
Married filing jointly – Progressive Tax Brackets (2016)
Marginal income tax brackets for Married filing jointly filers in Alabama for 2016. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 1,000.00 | 2% |
| 2 | $ 1,000.00 to $ 6,000.00 | 4% |
| 3 | $ 6,000.00 and over | 5% |
Married filing separately – Progressive Tax Brackets (2016)
Marginal income tax brackets for Married filing separately filers in Alabama for 2016. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 500.00 | 2% |
| 2 | $ 500.00 to $ 3,000.00 | 4% |
| 3 | $ 3,000.00 and over | 5% |
Head of household – Progressive Tax Brackets (2016)
Marginal income tax brackets for Head of household filers in Alabama for 2016. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 500.00 | 2% |
| 2 | $ 500.00 to $ 3,000.00 | 4% |
| 3 | $ 3,000.00 and over | 5% |
Widowed – Progressive Tax Brackets (2016)
Marginal income tax brackets for Widowed filers in Alabama for 2016. Only the portion of income within each bracket is taxed at the stated rate.
| Bracket | Range | Rate |
|---|---|---|
| 1 | $ 0.00 to $ 500.00 | 2% |
| 2 | $ 500.00 to $ 3,000.00 | 4% |
| 3 | $ 3,000.00 and over | 5% |
Alabama Standard Deduction(2016)
State-level standard deduction amounts for each filing status.
| Filing Status | Amount |
|---|---|
| Single | $2,500 |
| Married filing jointly | $7,500 |
| Married filing separately | $3,750 |
| Head of household | $4,700 |
| Widowed | $7,500 |
Alabama Tax Tables for Related Years
These related years are often reviewed together for comparing bracket changes, deductions and Alabama updates:
Frequently Asked Questions
What records should taxpayers keep to document capital gains and losses reported on Schedule D?
Taxpayers should retain brokerage statements, consolidated 1099 forms, purchase confirmations, sale confirmations, cost-basis records, improvement receipts for real property, and depreciation schedules for any assets subject to annual deductions. Alabama audits often focus on basis accuracy and verification of loss carryovers, so keeping documentation for both acquisition and sale is essential. For long-term holdings, records may go back many years and should be stored securely. Even when brokerage firms track basis, taxpayers bear ultimate responsibility for accuracy. Maintaining detailed records ensures clean reporting and reduces the risk of adjustments or disallowed losses during review.
Does sales or property tax affect this page?
This page models income/payroll taxes only; other taxes affect your budget, not paycheck math.
Where can I get help understanding complex allocation scenarios on AL-40NR?
Complex allocation issues—such as multi-state employment, remote work with periodic Alabama presence, cross-border business operations, or shared pass-through ownership—often require careful review to avoid over-reporting or under-reporting Alabama income. You can begin by exploring the detailed nonresident calculator at https://www.taxformcalculator.com/calculator/alabama/al-40nr.html, which helps you model income scenarios and validate your allocation percentages. This tool can be especially helpful for part-year movers who had pay originating in one state while performing duties in another. It also assists in identifying which adjustments and credits need to be prorated. For filers with pass-through entities, rental property, or substantial business activity, methodical use of the calculator can prevent errors that may otherwise lead to amended returns, delayed refunds, or Alabama Department of Revenue inquiries.
Why don’t my brackets match payroll tables?
Employers may use different rounding/timing tables; small variances are normal.
What documentation should taxpayers keep to support KRCC-I claims?
Taxpayers must retain the original Alabama Capital Credit certificate, pass-through K-1 statements showing their credit allocation, project approval letters from the Alabama Department of Commerce, prior-year KRCC-I schedules reflecting carryforward balances and the certified project number. Supporting documentation must demonstrate the taxpayer’s ownership interest for each period in which the credit is claimed. While Alabama does not require filing all documents with the return, the Department of Revenue can request them at any time, and incomplete documentation may result in a denied or reduced credit. These records should be retained for the full credit duration, as claims may span up to 20 years.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.