TAXES 22-24, Alabama State Income Tax Withholding

Published: June 27, 2022
Effective: Pay Period 12, 2022

Summary

The income tax withholding formula for the State of Alabama includes the following changes:

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:

0/S/N/M/H Number of Exemptions

TSP Deferred:

Yes

Special Coding:

Determine the Total Number of Allowances Claimed field as follows:

First Position - S = Single; N = Married, Filing Separate Returns; M = Married; H = Head of Household.

When the EMPE-MAR-STAT field is blank or invalid the default value used will be Zero (0), the taxpayer will use the Single Standard Deduction table and use Zero (0) personal exemptions.

Second and Third Positions - Enter the total number of allowances claimed. If less than 10, precede with a Zero (0).

Additional Information:

None

Withholding Formula (Effective Pay Period 12, 2022)

Note: The State does not allow employees to claim exemption from withholding. If the employee has claimed exemption, calculate tax using the steps below.

  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 (e.g., taxable life insurance) 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. Add results of a thru d and subtract this amount from the annualized gross pay to determine annualized taxable wages.
    1. Determine the standard deduction based on the employee's marital status and annualized gross pay using one of the following tables:

      Standard Deduction Table for Zero (0) or Single (Filing Status S)

      If the Amount of Taxable Income Is:

      The Standard Deduction Amount Is:

      Over $0 but not over $25,999.99

      $3,000

      Over $25,999.99 but not over $26,499.99

      $2,975

      Over $26,499.99 but not over $26,999.99

      $2,950

      Over $26,999.99 but not over $27,499.99

      $2,925

      Over $27,499.99 but not over $27,999.99

      $2,900

      Over $27,999.99 but not over $28,499.99

      $2,875

      Over $28,499.99 but not over $28,999.99

      $2,850

      Over $28,999.99 but not over $29,499.99

      $2,825

      Over $29,499.99 but not over $29,999.99

      $2,800

      Over $29,999.99 but not over $30,499.99

      $2,775

      Over $30,499.99 but not over $30,999.99

      $2,750

      Over $30,999.99 but not over $31,499.99

      $2,725

      Over $31,499.99 but not over $31,999.99

      $2,700

      Over $31,999.99 but not over $32,499.99

      $2,675

      Over $32,499.99 but not over $32,999.99

      $2,650

      Over $32,999.99 but not over $33,499.99

      $2,625

      Over $33,499.99 but not over $33,999.99

      $2,600

      Over $33,999.99 but not over $34,499.99

      $2,575

      Over $34,499.99 but not over $34,999.99

      $2,550

      Over $34,999.99 but not over $35,499.99

      $2,525

      $35,499.99

      $2,500

      Standard Deduction Table for Married Filing Separate (Filing Status N)

      If the Amount of Taxable Income Is:

      The Standard Deduction Amount Is:

      Over $0 but not over $12,999.99

      $4,250

      Over $12,999.99 but not over $13,249.99

      $4,162

      Over $13,249.99 but not over $13,499.99

      $4,074

      Over $13,499.99 but not over $13,749.99

      $3,986

      Over $13,749.99 but not over $13,999.99

      $3,898

      Over $13,999.99 but not over $14,249.99

      $3,810

      Over $14,249.99 but not over $14,499.99

      $3,722

      Over $14,499.99 but not over $14,749.99

      $3,634

      Over $14,749.99 but not over $14,999.99

      $3,546

      Over $14,999.99 but not over $15,249.99

      $3,458

      Over $15,249.99 but not over $15,499.99

      $3,370

      Over $15,499.99 but not over $15,749.99

      $3,282

      Over $15,749.99 but not over $15,999.99

      $3,194

      Over $15,999.99 but not over $16,249.99

      $3,106

      Over $16,249.99 but not over $16,499.99

      $3,018

      Over $16,499.99 but not over $16,749.99

      $2,930

      Over $16,749.99 but not over $16,999.99

      $2,842

      Over $16,999.99 but not over $17,249.99

      $2,754

      Over $17,249.99 but not over $17,499.99

      $2,666

      Over $17,499.99 but not over $17,749.99

      $2,578

      Over $17,749.99

      $2,500

      Standard Deduction Table for Married (Filing Status M)

      If the Amount of Taxable Income Is:

      The Standard Deduction Amount Is:

      Over $0 but not over $25,999.99

      $8,500

      Over $25,999.99 but not over $26,499.99

      $8,325

      Over $26,499.99 but not over $26,999.99

      $8,150

      Over $26,999.99 but not over $27,499.99

      $7,975

      Over $27,499.99 but not over $27,999.99

      $7,800

      Over $27,999.99 but not over $28,499.99

      $7,625

      Over $28,499.99 but not over $28,999.99

      $7,450

      Over $28,999.99 but not over $29,499.99

      $7,275

      Over $29,499.99 but not over $29,999.99

      $7,100

      Over $29,999.99 but not over $30,499.99

      $6,925

      Over $30,499.99 but not over $30,999.99

      $6,750

      Over $30,999.99 but not over $31,499.99

      $6,575

      Over $31,499.99 but not over $31,999.99

      $6,400

      Over $31,999.99 but not over $32,499.99

      $6,225

      Over $32,499.99 but not over $32,999.99

      $6,050

      Over $32,999.99 but not over $33,499.99

      $5,875

      Over $33,499.99 but not over $33,999.99

      $5,700

      Over $33,999.99 but not over $34,499.99

      $5,525

      Over $34,499.99 but not over $34,999.99

      $5,350

      Over $34,999.99 but not over $35,499.99

      $5,175

      Over $35,499.99

      $5,000

      Standard Deduction Table for Head of Household (Filing Status H)

      If the Amount of Taxable Income Is:

      The Standard Deduction Amount Is:

      Over $0 but not over $25,999.99

      $5,200

      Over $25,999.99 but not over $26,499.99

      $5,065

      Over $26,499.99 but not over $26,999.99

      $4,930

      Over $26,999.99 but not over $27,499.99

      $4,795

      Over $27,499.99 but not over $27,999.99

      $4,660

      Over $27,999.99 but not over $28,499.99

      $4,525

      Over $28,499.99 but not over $28,999.99

      $4,390

      Over $28,999.99 but not over $29,499.99

      $4,255

      Over $29,499.99 but not over $29,999.99

      $4,120

      Over $29,999.99 but not over $30,499.99

      $3,985

      Over $30,499.99 but not over $30,999.99

      $3,850

      Over $30,999.99 but not over $31,499.99

      $3,715

      Over $31,499.99 but not over $31,999.99

      $3,580

      Over $31,999.99 but not over $32,499.99

      $3,445

      Over $32,499.99 but not over $32,999.99

      $3,310

      Over $32,999.99 but not over $33,499.99

      $3,175

      Over $33,499.99 but not over $33,999.99

      $3,040

      Over $33,999.99 but not over $34,499.99

      $2,905

      Over $34,499.99 but not over $34,999.99

      $2,770

      Over $34,999.99 but not over $35,499.99

      $2,635

      Over $35,499.99

      $2,500

    2. 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.
    3. Determine the Personal Exemption based on the employee's marital status using the following table:

      If the Employee Claims the Following Withholding Exemption Status:

      The Personal Exemption Is:

      Zero

      $0

      Single or Married Filing Separate

      $1,500

      Married or Head of Household

      $3,000

    4. 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 $50,000

      $1,000

      Over $50,000 but not over $100,000

      $500

      Over $100,000

      $300

  6. If the employee is claiming Zero (0) or Single, Married Filing Separate or Head of Household, apply the following tax rate to the annualized taxable wages to determine the annual amount:

    Zero (0) or Single, Married Filing Separate 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

  7. If the employee is claiming Married, apply the following tax rate to the annualized taxable wages to determine the annual tax 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% of excess over $1,000

    Over $6,000

    $220 plus 5.0% of excess over $6,000

  8. Divide the annual Alabama tax withholding calculated in step 6 or 7 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) Home page. 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

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 customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.