TAXES 18-45, Alabama State Income Tax Withholding | National Finance Center

TAXES 18-45, Alabama State Income Tax Withholding

Published: March 21, 2018
Effective: Pay Period 20, 2015

Summary

This tax bulletin is being updated to remove the number of pay periods in steps 4, 6 and 10 and replace with the phrase "number of pay dates in the tax year," thereby preventing any confusion in future years. All other information in this bulletin remains the same.

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)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. 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.
  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. 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

    $2,450

    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

    $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

    $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

    $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

    $2,000

     

  6. Calculate the Federal Tax Deduction based on the actual amount of Federal tax withheld this payroll period multiplied by the number of pay dates in the tax year. 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

     

  7. 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

    $300

     

  8. If the employee is claiming 0 (zero), Single, Married Filing Separately or Head of Household, apply the following tax rate to 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

    2.0%

    Over $500 but not over $3,000

    $10 plus 4.0% of excess over over $500

    Over $3,000

    $110 plus 5.0% of excess over over $3,000

     

  9. If the employee is claiming Married, apply the following tax rate to 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

    2.0%

    Over $1,000 but not over $6,000

    $20 plus 4.0% over $1,000

    Over $6,000

    $220 plus 5.0% over $6,000

     

  10. Divide the annual Alabama tax withholding by the number of pay dates in the tax year to obtain the biweekly Alabama tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

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