How Birmingham's local tax is calculated
| Rate (resident, on gross wages) | 1% |
|---|---|
| Estimated annual local tax | $650 |
On a $65,000 salary, Birmingham's local tax adds an estimated $650 a year on top of Alabama state and federal tax, leaving $50,748 take-home.
| Rate (resident, on gross wages) | 1% |
|---|---|
| Estimated annual local tax | $650 |
2026 estimates for a single filer with no pre-tax contributions. Each salary links to the same figure for Alabama without the Birmingham tax.
| Salary | Birmingham tax | Alabama income tax | Federal income tax | Social Security + Medicare | Take-home |
|---|---|---|---|---|---|
| $50,000 | $500 | $2,260 | $3,820 | $3,825 | $39,595 |
| $75,000 | $750 | $3,510 | $7,670 | $5,738 | $57,333 |
| $100,000 | $1,000 | $4,760 | $13,170 | $7,650 | $73,420 |
| $125,000 | $1,250 | $6,010 | $18,734 | $9,563 | $89,444 |
| $150,000 | $1,500 | $7,260 | $24,734 | $11,475 | $105,031 |
| $200,000 | $2,000 | $9,760 | $36,734 | $14,339 | $137,167 |
Yes, at the same 1% rate as residents. Birmingham's ordinance (Code of Ordinances, Title 3A, Ch. 2, Section 3A-2-2) applies its 1% occupational tax to both residents and non-residents performing services in the city.
Alabama’s tax treatment traces to Alabama DOR — 2026 Form 40ES. Sources were reviewed through August 9, 2026.
Read the calculation methodology