Alabama Bonus Tax Calculator (2026)
Alabama withholds 5% state income tax on bonuses, on top of the federal 22% and 7.65% FICA.
Alabama rules for bonuses
Optional flat supplemental rate. Published rates: 5% for bonuses and supplemental wage payments (bonuses, commissions, overtime).
- Alternative: aggregate with current or last preceding regular wages
- Rule does not limit the 5% to separately paid bonuses
Employers may withhold state income tax from bonuses and supplemental wage payments at the rate of 5%. / Tax for supplemental wage payments may be withheld using a flat rate of 5% without allowance for exemptions or dependents. (Rule 810-3-71-.02(2)(c))
Local taxes: City/county occupational license taxes in some places (e.g., Birmingham 1%), not administered by ALDOR
Take-home bonus by amount
| Bonus | Federal (22%) | FICA | State | Take-home |
|---|---|---|---|---|
| $1,000 | $220 | $77 | $50 | $654 |
| $2,500 | $550 | $191 | $125 | $1,634 |
| $5,000 | $1,100 | $383 | $250 | $3,268 |
| $10,000 | $2,200 | $765 | $500 | $6,535 |
| $20,000 | $4,400 | $1,530 | $1,000 | $13,070 |
| $50,000 | $11,000 | $3,825 | $2,500 | $32,675 |
Sources
Frequently asked questions
What is the bonus tax rate in Alabama?
Alabama withholds 5% on bonuses when the employer chooses the flat supplemental rate, on top of the federal 22% and 7.65% FICA.
How much of a $10,000 bonus do I keep in Alabama?
About $6,535 for a single filer earning $85,000: $2,200 federal, $765 Social Security and Medicare and $500 state.
Will I get some of the bonus tax back?
Possibly. The 22% federal rate is only withholding. At tax time your bonus is taxed at your bracket (22% at this salary), and Alabama's flat supplemental rate can also differ from your actual state rate.