Alabama Local Income Tax Rates, 2026

9 Alabama jurisdictions withhold a local income tax, at 1% to 3% for residents. Base: Gross wages, Medicare wages. Every rate links to its source.

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Calculators for major Alabama jurisdictions

Gadsden (2%), Auburn (1%), Bessemer (1%), Birmingham (1%), Opelika (1%)

All Alabama local income tax rates

Jurisdiction Residents Non-residents Source
Auburn 1% 1% source
Bessemer 1% 1% source
Birmingham 1% 1% source
Gadsden 2% 2% source
Glencoe 2% 2% source
Leeds 1% 1% source
Opelika 1% 1% source
Rainbow City 2% 2% source
Tuskegee 3% 3% source

Resident rates apply to the base shown above; bracketed localities show the top rate.

FAQ

How many Alabama jurisdictions have a local income tax?

9 in 2026, with resident rates from 1% to 3%. Anywhere else in Alabama, no local income tax is withheld.

What income does Alabama local income tax apply to?

Gross wages or Medicare wages. 401(k) deferrals stay in the base; only Section 125 health premiums come out first.

Do non-residents who work in a Alabama city pay it?

Yes, at the non-resident rate shown, on wages earned in the city. Residents who work elsewhere pay their home rate.

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