Montgomery Local Tax Guide (2026)
The City of Montgomery does not levy an occupational tax, so nothing is withheld from your pay for one.
In this guide
Last updated: October 1, 2026
- •The City of Montgomery does not levy an occupational tax, so nothing is withheld from your pay for one.
- •Some Alabama cities, such as Birmingham and Gadsden, charge an occupational tax on pay for work done in the city. Montgomery's license and revenue office lists no such tax.
- •Alabama state income tax still applies.
What applies in Montgomery
The City of Montgomery does not levy an occupational tax, so nothing is withheld from your pay for one.
Some Alabama cities, such as Birmingham and Gadsden, charge an occupational tax on pay for work done in the city. Montgomery's license and revenue office lists no such tax.
Alabama state income tax still applies.
Source: City of Montgomery: license and revenue, checked October 2026.
What it means for your paycheck
Take-home pay in Montgomery comes down to federal tax, Social Security and Medicare, and Alabama tax.
Our Alabama calculator covers federal income tax, Social Security and Medicare, Alabama income tax and any state payroll contributions. It adds no Montgomery line: what, if anything, applies there is set out above.