State Reference · Tax Year 2026
Alabama (AL)
Graduated 2%–5%
Alabama Department of Revenue · Main form: Form 40 · Due April 15, 2027
Rates & brackets
Top rate5% on income over $3,000 (single) / $6,000 (MFJ)
Brackets2% / 4% / 5%
Standard deduction$2,500 single / $7,500 MFJ (income-based sliding)
Personal / dependentDependent exemption $1,000
Filing logistics
Main formForm 40
Filing dueApril 15, 2027
E-file portalMAT (My Alabama Taxes) e-file portal
AgencyAlabama Department of Revenue
Major credits
- Federal income tax deduction (itemizers)
- Rural physician credit
- Adoption credit
Sales & property tax
Sales tax4% state + up to 7.5% local
Property taxAssessed by county; homestead exemption up to $4,000
Preparer notes
- Federal income tax is deductible on the AL return — unusual and often missed.
- Retirement income from defined-benefit plans is not taxed.
Related deduction & credit lessons
Deepen state-specific credit hunting with these lessons.