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Income Tax Withholding

Tax Types >
  • Income Tax Withholding

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Authority

Sections 40-18-70 through 40-18-91, Code of Alabama 1975. This is a component of Individual Income Tax.

Wages as defined under laws of the United States in effect July 1, 1982, reduced by optional standard deduction provided by Section 40-18-15, Code of Alabama 1975, federal income tax liability, and personal and dependent exemption granted under Section 40-18-19.

Persons claiming single or zero exemption: 2 percent on first $500 of taxable wages, 4 percent on next $2,500, and 5 percent on all over $3,000.

Persons claiming married exemption: 2 percent on first $1,000 of taxable wages, 4 percent on next $5,000, and 5 percent on all over $6,000.

Portion necessary to reimburse the Property Tax Relief Fund for Homestead Exemptions. The remaining balance to the Education Trust Fund.