Alabama State Income Tax Overview

If you live in Alabama or earn income from a source based in Alabama, you need to determine if you must file and pay Alabama state income tax.  State income tax is a tax imposed by the state on income earned that is separate from the federal income tax imposed by the Internal Revenue Service (IRS).

Following is general information for state income tax in Alabama.

Who has to file Alabama state income tax?

If you are a resident of Alabama for the entire year, you must file a state income tax return if your gross income exceeds the minimum threshold.  The thresholds vary depending on your filing status as follows:

Filing Status Minimum Gross Income
Single $4,000
Married Filing Separately $5,250
Head of Household $7,700
Married Filing Joint Return $10,500

If you are a resident of Alabama for only part of the year, you must file a state income tax return if your gross income exceeds the minimum threshold for the portion of the year when you reside in Alabama.  The thresholds vary depending on your filing status as follows:

Filing Status Minimum Gross Income
Single $4,000
Married Filing Separately $5,250
Head of Household $7,700
Married Filing Joint Return $10,500

If you are not a resident of Alabama for any part of the year but your income from sources based in Alabama exceeds your allowable prorated personal exemption, you must filing an Alabama state income tax return.

Am I allowed to take a personal exemption on my state income tax return?

Taxpayers are allowed to take a personal exemption, with the amount varying depending on your filing status as follows:

Filing Status Personal Exemption
Single $1,500
Married Filing Separately $1,500
Head of Household $3,000
Married Filing Joint Return $3,000

What tax rate does Alabama use for state income tax purposes?

Individual income tax rates vary depending on income level and filing status.  Alabama presently uses the tax rates as reflected in the following tables:

For those filing as Single, Head of Household, or Married Filing Separately

Income Tax Rate
Up to $500 2%
Over $500 and up to $3,000 4%
Over $3,000 5%

For those filing as Married Filing Jointly

Income Tax Rate
Up to $1,000 2%
Over $1,00 and up to $6,000 4%
Over $6,000 5%

When is my state income tax return due?

Alabama state income taxes are due on April 15 each year, or the first business day after that date if April 15 falls on a holiday or a weekend.  This means income taxes must be filed on this date and any tax owed must be paid on this date as well.

Alabama offers an automatic six-month extension on the filing of state income tax if you cannot get your return in by April 15, but any tax owed must still be paid by April 15 even when you receive an extension.  The Alabama Department of Revenue will charge a penalty and interest on any unpaid tax balance, so it is wise to get any tax payment owed in on time.

Where can I get help in completely my state income tax return?

As the information above is general in nature and should not be considered legal advice, you can provide your information on this site and a tax attorney who is familiar with Alabama state income tax laws will help you.  A tax attorney who knows the tax laws can both answer your questions and help you complete your state income tax return.

by Mark Johnston

Mark has been a contributor to legal web sites related to bankruptcy, tax, and criminal law since 2011. He has an Accounting degree from Texas A&M University.