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Alabama Hourly Paycheck Calculator

An hourly wage in Alabama is reduced by federal income tax, FICA of 7.65% (6.2% Social Security up to the annual wage base plus 1.45% Medicare), and Alabama's graduated income tax (2% to 5%) in 2026. Enter your wage and hours to see net pay for any pay frequency. Against the 4 states Alabama borders, the same $25 an hour is worth $41,552 here: Florida keeps $2,410 more ($43,962), Tennessee keeps $2,410 more ($43,962), Mississippi keeps $422 more ($41,974) and Georgia keeps $334 more ($41,886). Florida, Georgia, Mississippi and Tennessee are the only borders worth crossing for the tax alone.

Estimated take-home

$1,598

every two weeks · $41,552 a year

For $25/hr, 40 hrs a week · Alabama · local tax not included · single

Take-home 80%Taxes & deductions 20%

Pay stub

ItemPer paycheckPer year
Gross pay$2,000.00$52,000
Federal income tax− $156.15− $4,060
Social Security (FICA)− $124.00− $3,224
Medicare (FICA)− $29.00− $754
Alabama income tax− $92.69− $2,410
Take-home pay$1,598.15$41,552

FICA is Social Security plus Medicare.

Estimate based on 2026 federal and Alabama tax rules updated Oct 2026 How we calculate

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You keep

80¢of every dollar

On average you keep 80¢ of each dollar. Of your next $1,000, you’d keep about $754: the dashed line.

Insights

  • Next $1,000

    Every extra $1,000 you earn adds about $754 to your take-home. The other $246 goes to tax.

  • In Texas

    In Texas the same pay would leave you $2,410 more a year. Texas has no state income tax.

  • Overtime

    One more overtime hour a week ($37.50) would add about $57 to each paycheck after withholding.

State comparisons cover income and payroll taxes only; living costs and other taxes differ.

Effective tax rate 20.1%

What common hourly wages leave in Alabama

Worked full time at 40 hours a week in Alabama, here is what common wages leave after federal tax, Alabama income tax and FICA in 2026:

WageGrossAlabama taxYou keepShare kept
$18/hour$37,440$1,682$30,58181.7%
$25/hour$52,000$2,410$41,55279.9%
$35/hour$72,800$3,450$56,59577.7%

Alabama takes about 4.6% of that money on top of the 8% federal marginal rate and 7.65% FICA.

How Alabama ranks on hourly wages

Across all 50 states and DC, Alabama ranks 45th for what $25 an hour leaves in 2026. That is $708 less than the median state ($42,260), and $1,878 more than Oregon, where the same $25 an hour leaves $39,674.

The best outcome anywhere is $43,962 in Alaska and the other states with no wage income tax, $2,410 more than Alabama keeps.

Alabama hourly wages against the states next door

Crossing a state line changes what the same hourly wage is worth without changing what you are paid. Here is $25 an hour in Alabama against the states it borders:

StateState income taxYou keepvs Alabama
Alabama$2,410$41,552—
FloridaNone$43,962$2,410 more
Georgia$2,076$41,886$334 more
Mississippi$1,988$41,974$422 more
TennesseeNone$43,962$2,410 more

Local income tax on hourly wages in Alabama

3 jurisdictions in Alabama levy an income tax of their own on top of the state rate. The calculator above does not include them, so add this if you live or work in one:

JurisdictionResident rateCost on $52,000
Gadsden2.00%$1,040
Birmingham1.00%$520
Bessemer1.00%$520

How hourly take-home pay is calculated in Alabama

Your hourly wage is just the starting point. Alabama workers pay federal and state taxes on their annualized income, plus mandatory FICA contributions. Here's exactly how it works.

  • Annualized income determines your bracket: Your employer annualizes your hourly income (hourly rate × hours × 52 weeks) to determine the correct withholding for each paycheck.
  • Alabama state income tax: Wages are taxed through Alabama's graduated income tax (2% to 5%), applied to each paycheck based on your annualized income and filing status. Local income taxes in some Alabama cities or counties are not included.
  • Social Security and Medicare: FICA taxes are 6.2% for Social Security (up to the annual wage base) and 1.45% for Medicare. These are fixed percentages with no deductions or exemptions.
  • Pre-tax deductions reduce your taxable income: Contributions to a 401(k), HSA, or FSA are deducted before taxes are calculated, lowering both your taxable income and your tax bill.

The calculator combines all these factors to show your exact take-home pay per paycheck, per month, and annually.

Frequently Asked Questions

Hourly wages in Alabama are subject to federal income tax (based on your annualized income and filing status), Alabama's graduated income tax (2% to 5%), and FICA taxes (Social Security at 6.2% up to the annual wage base and Medicare at 1.45%). The calculator annualizes your hourly income to determine the correct tax bracket, then shows your actual per-paycheck take-home.

Multiply your hourly rate by your weekly hours, then by 52: $25/hour × 40 hours × 52 weeks is $52,000 a year. That annualized figure sets your federal and Alabama bracket. In Alabama it works out to $30,581 on $18 an hour, $41,552 on $25 an hour, $56,595 on $35 an hour: take-home, not gross.

Federal income tax (using progressive brackets based on your annualized income and filing status), Alabama's graduated income tax (2% to 5%), Social Security tax (6.2% up to the wage base, currently $176,100 for 2026), and Medicare tax (1.45% on all income, plus 0.9% for earnings over $200,000 if single or $250,000 if married).

Alabama's minimum wage is set by state law and may be higher than the federal minimum of $7.25 per hour. Some cities within Alabama have their own higher local minimums. Check your employer's offer against the current Alabama Department of Labor rates to verify compliance.

Your total annual tax is the same however often you're paid; only the per-paycheck withholding changes. On $25 an hour in Alabama that is about $1,598 every two weeks, $1,731 semi-monthly or $3,463 a month after tax. The calculator adjusts withholding for weekly, bi-weekly, semi-monthly and monthly periods.

Against the 4 states Alabama borders, the same $25 an hour is worth $41,552 here: Florida keeps $2,410 more ($43,962), Tennessee keeps $2,410 more ($43,962), Mississippi keeps $422 more ($41,974) and Georgia keeps $334 more ($41,886). Florida, Georgia, Mississippi and Tennessee are the only borders worth crossing for the tax alone.

Alabama's three brackets cover only $6,000 total (for married filers), meaning virtually everyone earning above $15,000 pays the top 5% rate on almost all income. A $30,000 earner pays the same effective rate (around 5%) as someone earning $150,000. The 'progressive' label is technically accurate but practically irrelevant: Alabama effectively operates like a flat 5% tax state for most taxpayers.

Alabama's combined sales tax rates can reach 9%-11% in some areas (4% state plus up to 7% local). A $200 weekly grocery bill includes $18-$22 in sales tax, and someone spending $40,000 annually on taxable goods pays $3,600-$4,400 in sales tax. This can offset or exceed income tax savings for big spenders, especially lower-income workers who spend a larger percentage of income on taxable goods.

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