Birmingham Income Tax Calculator
Calculate your take-home pay in Birmingham, Alabama including the 1% local income tax on top of Alabama's 5% state rate.
How Birmingham's 1% Tax Hits at Different Salaries
| Salary | City Tax | Take-Home (with city tax) | Take-Home (without) | City Tax Cost/Month |
|---|---|---|---|---|
| $50,000 | $500 | $40,230 | $40,730 | $42 |
| $75,000 | $750 | $58,350 | $59,100 | $63 |
| $100,000 | $1,000 | $74,875 | $75,875 | $83 |
| $125,000 | $1,250 | $91,351 | $92,601 | $104 |
| $150,000 | $1,500 | $107,376 | $108,876 | $125 |
| $200,000 | $2,000 | $140,387 | $142,387 | $167 |
Birmingham Local Income Tax: What You Need to Know
Birmingham levies a 1% local income tax on both residents and non-residents earning income in the city. This is in addition to Alabama's 5% state income tax, bringing the combined state and local rate to 6.00%.
Occupational tax on all wages earned within Birmingham.
The local tax applies to earned income including wages, salaries, and in most cases net self-employment income. Investment income, pensions, and Social Security are typically exempt from local income taxes.
The 1% local tax is applied on top of Alabama's 5% state income tax and federal income tax. On a $100,000 salary, Birmingham's local tax costs approximately $1,000/year — that's $83/month or $38 per biweekly paycheck.
This tax applies to both residents and non-residents earning income in Birmingham. Even if you commute from outside the city, you owe the local tax on wages earned within Birmingham.
Other Cities with Local Tax in Alabama
Frequently Asked Questions
Birmingham charges a 1% local income tax. On a $100,000 salary, this costs approximately $1,000/year. This tax applies to both residents and non-residents earning income in the city.
Partially. Birmingham taxes non-residents on income earned within the city at 1%. You'd need to both live and work outside the city to avoid it entirely.
Including Alabama's 5% state rate, Birmingham's 1% local rate, and federal taxes, a $100K earner pays an effective rate of approximately 25.1%.
Yes, local income taxes are deductible as part of your state and local tax (SALT) deduction if you itemize. However, the SALT deduction is capped at $10,000 ($5,000 for married filing separately), which limits the benefit for many taxpayers.