{"place":"Alabama","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/alabama","state":{"code":"AL","name":"Alabama","slug":"alabama","incomeTax":{"type":"progressive","flatRate2026":null,"lowestRate2026":2,"topRate2026":5,"topRateStartsSingle":3000,"notes":"Single, head of family, and married filing separately: 2% on the first $500 of taxable income, 4% on the next $2,500, and 5% on taxable income over $3,000. Married filing jointly: 2% on the first $1,000, 4% on the next $5,000, 5% over $6,000.","source":"https://www.revenue.alabama.gov/faqs/what-is-alabamas-individual-income-tax-rate/"},"estimatedTax":{"form":"40ES","rule":"You generally must pay estimated tax if you expect to owe at least $500 for 2026 after withholding and credits, and your withholding plus credits will be less than the smaller of 90% of your 2026 tax or 100% of your 2025 tax (110% if your 2025 Alabama AGI was over $150,000).","schedule":"Same dates as federal: April 15, June 15, and September 15, 2026, and January 15, 2027 (farmers with at least two-thirds of gross income from farming may pay by January 15, 2027).","source":"https://www.revenue.alabama.gov/wp-content/uploads/2026/01/26f40esinstr.pdf"},"minimumWage2026":{"standard":null,"tippedCash":2.13,"tipCreditAllowed":true,"notes":"Alabama has no state minimum wage law, so the federal FLSA minimum of $7.25 and the federal $2.13 tipped cash wage (maximum tip credit $5.12) apply to covered employers.","source":"https://www.dol.gov/agencies/whd/state/minimum-wage/tipped"},"soleProprietorTaxes":[{"name":"Alabama business privilege tax","summary":"An annual tax on LLCs (including disregarded single-member LLCs, which file Form PPT when the owner is not itself subject to the tax) and corporations. It is $0.25 to $1.75 per $1,000 of Alabama net worth, with the rate set by federal taxable income apportioned to Alabama, up to a $15,000 maximum. For tax year 2026, a business that would only owe the $100 minimum tax has no filing requirement.","source":"https://www.revenue.alabama.gov/wp-content/uploads/2026/01/26quickrefcptpptinst.pdf"}],"contractorLaws":[{"name":"Alabama Portable Benefits Act (Act 2025-119)","summary":"Creates voluntary portable benefit accounts for independent contractors and gig workers to fund health, income-replacement, life insurance, and retirement benefits. For tax years beginning after December 31, 2025, contractors can deduct 100% of contributions (their own and those from hiring parties) on their Alabama return, and hiring parties can deduct 100% of what they contribute. Courts cannot use a hiring party's contributions as a factor in deciding whether a worker is an employee.","source":"https://www.revenue.alabama.gov/individual-corporate/portable-benefit-accounts/"}],"notes":"Alabama's portable benefit account deduction applies starting in tax year 2026, so it is a key planning item for Alabama gig workers and the platforms that pay them."},"stateRetirementProgram":{"state":"Alabama","code":"AL","programName":null,"status":"none","employerMandate":null,"mandateMin":null,"keyDates":null,"covers1099":null,"selfEnroll":"n/a","sourceUrl":"https://cri.georgetown.edu/states","note":"No enacted state-facilitated program. Not among the 22 states Georgetown CRI counts as having enacted a program.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/alabama/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/alabama/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/alabama/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/alabama/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/alabama/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/alabama/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/alabama/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}