What are the income tax rates in Alabama?

The income tax rates in Alabama vary based on your level of taxable income. Alabama uses a tiered system with rates ranging from 2% to 5%. For taxpayers with taxable income below $500, the rate is 2%. If your taxable income falls between $501 and $3,000, the rate increases to 4%. For those earning between $3,001 and $6,000, the rate rises to 5%. Taxpayers with taxable income above $6,000 are also subjected to a rate of 5%. Furthermore, there are some deductions and credits available that may help reduce your overall tax liability. However, it's important to consult the Alabama Department of Revenue or a tax professional for specific information and advice tailored to your individual circumstances.