TaxWrenTaxes for Alabama freelancers in 2026
Single filers get a standard deduction of $3,000 ($8,500 married filing jointly) and a personal exemption of $1,500.
On $85,000 of 1099 profit, a single filer owes about $3,685 in Alabama income tax on top of $17,800 in federal taxes. That ranks 42nd lowest of 51 (50 states and DC), $956 more than the median state.
Every neighboring state with a different tax charges less on the same income; Florida would save $3,685 a year.
Alabama also has local (county or city) income taxes. They average 0.07% of adjusted gross income statewide (2023 IRS and Census data compiled by the Tax Foundation) and are not included in these estimates.
Alabama income tax brackets for 2026
| Rate | Single: taxable income over | Married jointly: over |
|---|---|---|
| 2% | $0 | $0 |
| 4% | $500 | $1,000 |
| 5% | $3,000 | $6,000 |
Alabama vs. neighboring states
Tax on $85,000 of 1099 profit for a single filer in 2026. The median across all 50 states and DC is $2,729 of state income tax.
| State | State tax | Total tax | Take-home |
|---|---|---|---|
| Alabama | $3,685 | $21,485 | $63,515 |
| Florida | $0 | $17,800 | $67,200 |
| Georgia | $3,193 | $20,993 | $64,007 |
| Mississippi | $2,428 | $20,228 | $64,772 |
| Tennessee | $0 | $17,800 | $67,200 |
How Alabama taxes changed
Alabama's rates and deductions did not change for 2026. State tax on $85,000 of 1099 profit is unchanged at $3,685.
| 2025 | 2026 | |
|---|---|---|
| Top income tax rate | 5% | 5% |
| Standard deduction (single) | $3,000 | $3,000 |
| State tax on $85,000 of 1099 profit | $3,685 | $3,685 |
| Take-home on a $75,000 salary | $57,829 | $58,108 |
Each year uses that year's federal and Alabama rules, so the take-home row also reflects federal changes. Federal changes · All data updates
What this estimate simplifies
- These states allow some or all of federal income tax paid to be deducted from state taxable income.
- For single taxpayers with AGI not exceeding $25,499, the standard deduction is $3,000. This standard deduction amount is reduced by $25 for every additional $500 of AGI, not to fall below $2,500. For Married Filing Joint (MFJ) taxpayers with AGI not exceeding $25,999, the standard deduction is $8,500. This standard deduction amount is reduced by $175 for every additional $500 of AGI, not to fall below $5,000. For all taxpayers with AGI of $50,000 or less and claiming a dependent, the dependent exemption is $1,000. This amount is reduced to $500 per dependent for taxpayers with AGI above $50,000 and equal to or less than $100,000. For taxpayers with more than $100,000 in AGI, the dependent exemption is $300 per dependent.
- Dependent exemption is reduced to $500 for taxpayers with AGI greater than $50,000, and is phased out completely for taxpayers with AGI greater than $100,000.
Sources: Alabama revenue department, Tax Foundation, State Individual Income Tax Rates and Brackets, IRS Rev. Proc. 2025-32. See our methodology.
Alabama 1099 tax FAQ
Does Alabama have a state income tax?
Alabama has a graduated income tax with 3 rates from 2% to 5%; the top rate starts at $3,000 of taxable income for single filers.
How much should a freelancer in Alabama set aside for taxes?
A single filer with $85,000 of 1099 profit and no other income should set aside about 25% of every payment in 2026: $12,010 self-employment tax, $5,790 federal income tax and $3,685 Alabama income tax. Use the calculator for your own income, expenses and filing status.
What is the top Alabama income tax rate in 2026?
5%. Alabama has a graduated income tax with 3 rates from 2% to 5%; the top rate starts at $3,000 of taxable income for single filers.
Do I need to make estimated tax payments to Alabama?
Generally yes, if you expect to owe state tax that is not covered by withholding. Alabama sets its own thresholds and due dates; check the Alabama revenue department's estimated payment rules.