Alabama Payroll

Past Alabama tax ratesSelect state

Alabama Payroll Topics

The Yellowhammer State has a progressive income tax system with three different tax rates. Use the Alabama paycheck calculators to see the taxes on your paycheck. For employer tax calculations, use PaycheckCity Payroll.

Alabama Tax Information

Withholding Requirements

Employers and employees are subject to income tax withholding. There are federal and state withholding requirements

  • Register as an employer on the Alabama Department of Revenue website

  • Employee's Withholding Tax Exemption Certificate

    : A-4

  • Nonresident Military Spouse Withholding Tax Exemption Certificate

    : A4-MS

  • Withholding Method

    : Formula

  • Supplemental Wage / Bonus Rate

    : 5%

Alabama Local Occupational Taxes

Alabama State Unemployment Insurance (SUI)

  • Alabama Wage Base

    : $8,000 for 2023

  • Alabama SUI rates range from

    : 0.14% to 5.34% for 2023

  • Alabama new employer rate

    : 2.7% for 2023
  • Get your unemployment insurance rate: Alabama UI agency website

Alabama State Disability Insurance (SDI)

  • None

Alabama Family Leave Insurance (FLI)

  • None

Alabama State Labor Laws

  • Alabama Minimum Wage

    : $7.25

  • Alabama Termination Pay

    : no state provision

Alabama New Hire Reporting

Remit Withholding for Child Support to

Alabama Reciprocal states

  • None
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Updated April 2023These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.
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