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 EarningsAddonRate
$0.00$0.002.00%
$1,000.00$20.004.00%
$6,000.00$220.005.00%

All Others
Annual EarningsAddonRate
$0.00$0.002.00%
$500.00$10.004.00%
$3,000.00$110.005.00%

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
* Indicates changes made in the past 30 days