Alabama Tax Tables for 2021
The 2021 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 2021.
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Alabama Tax Tables for 2021
The tables below outline the income tax structure, deduction amounts, state-level credits and payroll-related rules used for Alabama in 2021. 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 (2021)
Marginal income tax brackets for Single filers in Alabama for 2021. 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 (2021)
Marginal income tax brackets for Married filing jointly filers in Alabama for 2021. 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 (2021)
Marginal income tax brackets for Married filing separately filers in Alabama for 2021. 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 (2021)
Marginal income tax brackets for Head of household filers in Alabama for 2021. 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 (2021)
Marginal income tax brackets for Widowed filers in Alabama for 2021. 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(2021)
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
How does income allocation work for part-year residents filing AL-40NR?
For part-year residents, Form AL-40NR requires a two-step process: (1) report all income from all sources on the federal-equivalent side of the return, and (2) allocate only Alabama-sourced income into the Alabama column. Income earned while you were physically residing in Alabama is generally considered Alabama-sourced, regardless of employer location. Meanwhile, income earned while domiciled outside Alabama is Alabama-sourced only if the economic activity occurred within the state—such as performing work in Alabama, operating a business there, or earning income from Alabama property. Deductions must also be apportioned: some are fully allowed, while others (e.g., certain business expenses) must be split proportionally. Accurate allocation ensures the tax is calculated only on income legally attributable to Alabama. Completing this allocation carefully often prevents over-taxation and produces a fair representation of your Alabama tax liability.
What is Alabama Schedule ATP and when is it required?
Alabama Schedule ATP is used to calculate and report additional taxes and penalties that arise when certain tax conditions are not met. Unlike other schedules that compute income or deductions, Schedule ATP focuses on situations such as early withdrawal penalties on education savings accounts, repayment requirements for certain credits, penalties for failure to file or pay timely, and other special-case tax assessments defined under Alabama law. This schedule functions as a central place where all supplemental taxes must be disclosed to ensure the taxpayer’s Form AL-40 or AL-40NR accurately reflects total liability. Failing to include required ATP entries may lead to ADOR corrections, additional assessments, or interest charges. Because of this, Schedule ATP is an essential compliance document for taxpayers who triggered any mid-year disallowed benefits, timing-related penalties, or other exceptions.
Are HSA contributions pre-tax for Alabama?
Generally pre-tax federally and often for Alabama; confirm in the state section and add in the calculator.
What is Alabama Schedule DC used for?
Schedule DC allows Alabama taxpayers to claim a deduction for qualified dependent-care expenses that enable them to work or actively seek employment. These expenses may include daycare, after-school programs, in-home childcare, or care for a disabled spouse or dependent who cannot care for themselves. Alabama’s rules parallel many federal provisions but apply at the state-deduction level rather than as a credit. To use Schedule DC, both spouses must have earned income when filing jointly unless one spouse is disabled or a full-time student. The deduction is limited by earned income, the dependency status of the individual receiving care and Alabama’s maximum per-dependent limits. Proper documentation is required for all expenses.
How does Alabama treat passive activity losses and out-of-state pass-through income?
Alabama generally follows federal passive-activity rules but requires taxpayers to separately identify passive losses on Schedule E so they can be applied only where permitted. If you have losses disallowed at the federal level, they remain disallowed in Alabama unless the state provides a separate exception. For pass-through income earned in another state, Alabama requires residents to report the full amount, then claim any allowable adjustments or credits on other schedules such as Schedule CR. The Schedule E calculator prepares totals that flow into Alabama Form 40 so the correct taxable amount appears on the return.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.