TAXES 15-40, Alabama State Income Tax Withholding
Published: October 2, 2015
Effective: Pay Period 20, 2015
Summary
The income tax withholding formula for the State of Alabama has been changed. The employees can no longer claim exemption from withholding.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
State Abbreviation: |
AL |
State Tax Withholding State Code: |
01 |
Acceptable Exemption Form: |
A-4 |
Basis for Withholding: |
State Exemptions |
Acceptable Exemption Data: |
S, MS, M, HH / Number of Exemptions |
TSP Deferred: |
Yes |
Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: First Position - S = Single; MS = Married, Filing Separate Returns, M = Married, HH = Head of Household. Second and Third Positions - Enter the total number of allowances claimed. If less than 10, precede with a 0 (zero). |
Additional Information: |
None |
Withholding Formula (Effective Pay Period 20, 2015)
- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment (s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in Step 1.
- Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 26 to obtain the gross annual wages.
- Determine the personal exemption by applying the following guideline and subtract this amount from the gross wages to compute the taxable income.
Tax Withholding Table Zero (0) or Single (Filing Status S)
If the Amount of Taxable Income Is:
The Standard Deduction Amount Is:
Over $0 but not over $20,499.99
$2,500
Over $20,499.99 but not over $20,999.99
$2,475
Over $20,999.99 but not over $21,499.99
$2450
Over $21,499.99 but not over $21,999.99
$2,425
Over $21,999.99 but not over $22,499.99
$2,400
Over $22,499.99 but not over $22,999.99
$2,375
Over $22,999.99 but not over $23,499.99
$2,350
Over $23,499.99 but not over $23,999.99
$2,325
Over $23,999.99 but not over $24,499.99
$2,300
Over $24,499.99 but not over $24,999.99
$2,275
Over $24,999.99 but not over $25,499.99
$2,250
Over $25,499.99 but not over $25,999.99
$2,225
Over $25,999.99 but not over $26,499.99
$2,200
Over $26,499.99 but not over $26,999.99
$2,175
Over $26,999.99 but not over $27,499.99
$2,150
Over $27,499.99 but not over $27,999.99
$2,125
Over $27,999.99 but not over $28,499.99
$2,100
Over $28,499.99 but not over $28,999.99
$2,075
Over $28,999.99 but not over $29,499.99
$2,050
Over $29,499.99 but not over $29,999.99
$2,025
Over $29,999.99 and over
$2,000
Tax Withholding Married Filing Separate (Filing Status MS)
If the Amount of Taxable Income Is:
The Standard Deduction Amount Is:
Over $0 but not over $10,249.99
$3,750
Over $10,249.99 but not over $10,499.99
$3,662
Over $10,499.99 but not over $10,749.99
$3,574
Over $10,749.99 but not over $10,999.99
$3,486
Over $10,999.99 but not over $11,249.99
$3,398
Over $11,249.99 but not over $11,499.99
$3,310
Over $11,499.99 but not over $11,749.99
$3,222
Over $11,749.99 but not over $11,999.99
$3,134
Over $11,999.99 but not over $12,249.99
$3,046
Over $12,249.99 but not over $12,499.99
$2,958
Over $12,499.99 but not over $12,749.99
$2,870
Over $12,749.99 but not over $12,999.99
$2,782
Over $12,999.99 but not over $13,249.99
$2,694
Over $13,249.99 but not over $13,499.99
$2,606
Over $13,499.99 but not over $13,749.99
$2,518
Over $13,749.99 but not over $13,999.99
$2,430
Over $13,999.99 but not over $14,249.99
$2,342
Over $14,249.99 but not over $14,499.99
$2,254
Over $14,499.99 but not over $14,749.99
$2,166
Over $14,749.99 but not over $14,999.99
$2,078
Over $14,999.99 and over
$2,000
Tax Withholding Married (Filing Status M)
If the Amount of Taxable Income Is:
The Standard Deduction Amount Is:
Over $0 but not over $20,499.99
$7,500
Over $20,499.99 but not over $20,999.99
$7,325
Over $20,999.99 but not over $21,499.99
$7,150
Over $21,499.99 but not over $21,999.99
$6,975
Over $21,999.99 but not over $22,499.99
$6,800
Over $22,499.99 but not over $22,999.99
$6,625
Over $22,999.99 but not over $23,499.99
$6,450
Over $23,499.99 but not over $23,999.99
$6,275
Over $23,999.99 but not over $24,499.99
$6,100
Over $24,499.99 but not over $24,999.99
$5,925
Over $24,999.99 but not over $25,499.99
$5,750
Over $25,499.99 but not over $25,999.99
$5,575
Over $25,999.99 but not over $26,499.99
$5,400
Over $26,499.99 but not over $26,999.99
$5,225
Over $26,999.99 but not over $27,499.99
$5,050
Over $27,499.99 but not over $27,999.99
$4,875
Over $27,999.99 but not over $28,499.99
$4,700
Over $28,499.99 but not over $28,999.99
$4,525
Over $28,999.99 but not over $29,499.99
$4,350
Over $29,499.99 but not over $29,999.99
$4,175
Over $29,999.99 and over
$4,000
Tax Withholding Head of Household (Filing Status HH)
If the Amount of Taxable Income Is:
The Standard Deduction Amount Is:
Over $0 but not over $20,499.99
$4,700
Over $20,499.99 but not over $20,999.99
$4,565
Over $20,999.99 but not over $21,499.99
$4,430
Over $21,499.99 but not over $21,999.99
$4,295
Over $21,999.99 but not over $22,499.99
$4,160
Over $22,499.99 but not over $22,999.99
$4,025
Over $22,999.99 but not over $23,499.99
$3,890
Over $23,499.99 but not over $23,999.99
$3,755
Over $23,999.99 but not over $24,499.99
$3,620
Over $24,499.99 but not over $24,999.99
$3,485
Over $24,999.99 but not over $25,499.99
$3,350
Over $25,499.99 but not over $25,999.99
$3,215
Over $25,999.99 but not over $26,499.99
$3,080
Over $26,499.99 but not over $26,999.99
$2,945
Over $26,999.99 but not over $27,499.99
$2,810
Over $27,499.99 but not over $27,999.99
$2,675
Over $27,999.99 but not over $28,499.99
$2,540
Over $28,499.99 but not over $28,999.99
$2,405
Over $28,999.99 but not over $29,499.99
$2,270
Over $29,499.99 but not over $29,999.99
$2,135
Over $29,999.99 and over
$2,000
- Calculate the Federal Tax Deduction based on the actual amount of federal tax withheld this payroll period multiplied by 26. Determine the personal exemption allowance based on the employee's marital status using the following table.
If the Employee Claims the Following Withholding Exemption Status:
The Personal Exemption Allowance Is:
Zero
$0
Single or Married Filing Separate
1,500
Married or Head of Household
3,000
- Calculate the Dependent Exemption by multiplying the number of exemptions claimed by one of the following amounts based on the employee's annualized wages.
If the Amount of Annual Wages Is:
The Amount Per Dependent Is:
Over $0 but not over $20,000
$1,000
Over $20,000 but not over $100,000
$500
Over $100,000 and over
$300
- If the employee is claiming "0" (Zero), Single, Married Filing Separately or Head of Household, apply the following tax rate the annualized taxable wages to determine the annual amount.
Zero (0), Single, Married, Filing Separately or Head of Household
If the Amount of Annual Taxable Wages Is:
The Amount of Tax Is:
Over $0 but not over $500
$0 plus 2.0% over $0
Over $500 but not over $3,000
$10 plus 4.0% over $500
Over $3,000 and over
$110 plus 5.0% over $3,000
- If the employee is claiming Married, apply the following tax rate the annualized taxable wages to determine the annual amount.
Married
If the Amount of Annual Taxable Wages Is:
The Amount of Tax Is:
Over $0 but not over $1,000
$0 plus 2.0% over $0
Over $1,000 but not over $6,000
$20 plus 4.0% over $1,000
Over $6,000 and over
$220 plus 5.0% over $6,000
- Divide the annual Alabama tax withholding by 26 to obtain the biweekly Alabama tax withholding.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.
Additional Resources
To view the updated tax formula go to the HR/Payroll Client page and click the Publications tab in the center ribbon. Select Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.