Alabama paycheck calculator

The official method, step by step

• Pay is annualized, then reduced by the Form W-4 amount for your filing status ($8,600, or $12,900 if married filing jointly) unless the Step 2 box is checked.
• Federal income tax comes from the IRS 2026 Annual Percentage Method table for that status, divided back to one paycheck.
• Social security is 6.2% of wages until the year's wages reach $184,500.
• Medicare is 1.45% of all wages, plus 0.9% on wages over $200,000 in the year.
• A pre-tax 401(k) lowers federal income tax wages, not social security or Medicare wages.
• Alabama income tax follows the state's withholding formula: annual pay less the standard deduction for the A-4 exemption and income level, the federal income tax withheld for the year, the personal exemption ($1,500 single, $3,000 married or head of family) and $300 to $1,000 per dependent. The rest is taxed at 2%, 4% and 5%, then divided over the pay periods.
• Alabama is one of the few states that subtracts federal income tax, so the Alabama line depends on the federal line above it.

What this leaves out

• City and county occupational taxes, such as Birmingham's
• Benefits, garnishments and other after-tax deductions
• W-4 Step 3 credits and Step 4 entries (the pay stub generator handles them)

Sources: Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers and Withholding Agents (rev. January 2026): Formula For Computing Alabama Withholding Tax; IRS Publication 15-T (2026), Federal Income Tax Withholding Methods: Worksheet 1A and the Annual Percentage Method Tables; IRS Publication 15 (2026), (Circular E) Employer's Tax Guide: social security and Medicare tax, Additional Medicare Tax.