Birmingham tax guide
At a $75,000 salary, working in Birmingham costs an extra $750/year in local taxes compared to a Alabama location with no local tax, bringing annual take-home down to $57,132.
Key tax highlights
Payroll
- Birmingham taxes residents and nonresidents at different rates, so your home address matters for the paycheck calculation.
- Both resident and commuter rates are withheld from each paycheck on top of Alabama state tax.
Local taxes
- Birmingham applies a 1% local wage tax on earned income.
- Nonresidents working in Birmingham pay a reduced rate of 1%.
Salary examples
Take-home estimates including local tax as a separate line. At $75,000, the local tax adds $750 per year. Use the calculator above with your actual salary for a precise estimate.
| Salary | Federal | State | Local | FICA | Take-Home | Rate |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $2,460 | $500 | $3,825 | $39,395 | 78.8% |
| $75,000 | $7,670 | $3,710 | $750 | $5,738 | $57,132 | 76.2% |
| $100,000 | $13,170 | $4,960 | $1,000 | $7,650 | $73,220 | 73.2% |
| $150,000 | $24,734 | $7,460 | $1,500 | $11,475 | $104,831 | 69.9% |
Resident and work caveats
- Birmingham local tax treatment can depend on whether you are taxed as a resident, a commuter, or both under local rules.
- Use the calculator as an estimate and verify edge cases when your home and work locations differ.
Other Alabama city pages
| City | Local rate |
|---|---|
| Montgomery | No local tax |
| Auburn | 1% |
| Opelika | 1% |
| Bessemer | 1% |