Alabama Payroll Withholding
Effective January 1, 2012
A. Standard deduction
Single or 0 exemption- AW <= $20,499.00: $2,500.00
- AW > $20,499.00 <= $30,000.00: $2,500.00 less $25.00 per $500.00 over $20,499.00
- AW > $30,000.00: $2,000.00
Married filing Separately- AW <= $10,249.00: $3,750.00
- AW > $10,249.00 <= $15,000.00: $3,750.00 less $88.00 per $250.00 over $10,249.00
- AW > $15,000.00: $2,000.00
Married filing Jointly- AW <= $20,499.00: $7,500.00
- AW > $20,499.00 <= $30,000.00: $7,500.00 less $175.00 per $500.00 over $20,499.00
- AW > $30,000.00: $4,000.00
Head of Family- AW <= $20,499.00: $4,700.00
- AW > $20,499.00 <= $30,000.00: $4,700.00 less $135.00 per $500.00 over $20,499.00
- AW > $30,000.00: $2,000.00
B. Federal Income Tax Withheld
C. Personal exemption
- Zero exemptions: $0.00
- Single: $1,500.00
- Married filing Separately: $1,500.00
- Married filing Jointly: $3,000.00
- Head of Family: $3,000.00
D. Dependant deduction (other than spouse):
- AW <= $20,000.00: $1,000.00
- AW <= $100,000.00: $500.00
- AW > $100,000.00: $300.00
Note: AW=Annualized wages
Married (except if zero exemptions)
Annual Earnings | Addon | Rate |
$0.00 | $0.00 | 2.00% |
$1,000.00 | $20.00 | 4.00% |
$6,000.00 | $220.00 | 5.00% |
All Others
Annual Earnings | Addon | Rate |
$0.00 | $0.00 | 2.00% |
$500.00 | $10.00 | 4.00% |
$3,000.00 | $110.00 | 5.00% |
Tax calculation formula:
Taxable income = AW - [A + B + C + (D x # dependants) ]
Supplemental rate: 5.00%
Note(s):
- All amounts are annual unless otherwise noted