Services

10Asset 411

Audit and Appeals

Asset 612

Business and License

10Asset 411

Collections

Asset 212

Entity Registration

Asset 212

Human Resources

Asset 812

Income Tax

Asset 712

Legal

10Asset 1112

Motor Vehicle

I7xCE512

Property Tax

Asset 712

Sales and Use

Asset 112

Tax Incentives

Asset 312

Tax Policy

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Income Tax Withholding

  • Income Tax Withholding

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.