{
  "$comment": "Alabama 2025: 2%/4%/5% brackets on Alabama AGI less sliding standard deduction, federal income tax, personal and dependent exemptions (Code of Ala. §§40-18-5, 40-18-15, 40-18-19).",
  "country": "us",
  "jurisdiction": "us-al",
  "taxYear": "2025",
  "period": {
    "start": "2025-01-01",
    "end": "2025-12-31",
    "tz": "America/Chicago"
  },
  "status": "provisional",
  "engine": "us-payroll@1",
  "currency": "USD",
  "revision": 1,
  "params": {
    "incomeTax": {
      "kind": "brackets",
      "incomeBase": "stateWages",
      "brackets": {
        "single": [
          {
            "upTo": "500",
            "rate": "0.02"
          },
          {
            "upTo": "3000",
            "rate": "0.04"
          },
          {
            "upTo": null,
            "rate": "0.05"
          }
        ],
        "mfj": [
          {
            "upTo": "1000",
            "rate": "0.02"
          },
          {
            "upTo": "6000",
            "rate": "0.04"
          },
          {
            "upTo": null,
            "rate": "0.05"
          }
        ],
        "mfs": [
          {
            "upTo": "500",
            "rate": "0.02"
          },
          {
            "upTo": "3000",
            "rate": "0.04"
          },
          {
            "upTo": null,
            "rate": "0.05"
          }
        ],
        "hoh": [
          {
            "upTo": "500",
            "rate": "0.02"
          },
          {
            "upTo": "3000",
            "rate": "0.04"
          },
          {
            "upTo": null,
            "rate": "0.05"
          }
        ]
      },
      "deductions": [
        {
          "type": "fixed",
          "id": "standard-deduction",
          "label": "Alabama standard deduction (AGI-sliding chart)",
          "amount": {
            "single": "3000",
            "mfj": "8500",
            "mfs": "4250",
            "hoh": "5200"
          },
          "phaseout": {
            "single": {
              "threshold": "25999",
              "rate": "0.05",
              "floor": "2500",
              "reductionRounding": {
                "unit": "25",
                "mode": "up"
              }
            },
            "mfj": {
              "threshold": "25999",
              "rate": "0.35",
              "floor": "5000",
              "reductionRounding": {
                "unit": "175",
                "mode": "up"
              }
            },
            "mfs": {
              "threshold": "12999",
              "rate": "0.352",
              "floor": "2500",
              "reductionRounding": {
                "unit": "88",
                "mode": "up"
              }
            },
            "hoh": {
              "threshold": "25999",
              "rate": "0.27",
              "floor": "2500",
              "reductionRounding": {
                "unit": "135",
                "mode": "up"
              }
            }
          }
        },
        {
          "type": "federalIncomeTax",
          "id": "federal-income-tax",
          "label": "Federal income tax deduction",
          "cap": {
            "single": null,
            "mfj": null,
            "mfs": null,
            "hoh": null
          }
        },
        {
          "type": "perPerson",
          "id": "exemptions",
          "label": "Personal and dependent exemptions",
          "filer": {
            "single": "1500",
            "mfj": "3000",
            "mfs": "1500",
            "hoh": "3000"
          },
          "perDependent": "1000",
          "perDependentSchedule": [
            {
              "agiUpTo": "50000",
              "value": "1000"
            },
            {
              "agiUpTo": "100000",
              "value": "500"
            },
            {
              "agiUpTo": null,
              "value": "300"
            }
          ]
        }
      ],
      "credits": []
    },
    "conformity": {
      "k401": true,
      "k403b": true,
      "k457": true,
      "hsa": true,
      "healthFsa": true,
      "dependentCareFsa": true,
      "section125": true
    },
    "programmes": []
  },
  "rounding": {
    "unit": "0.01",
    "mode": "halfUp",
    "stage": "perLine"
  },
  "knownCliffs": [
    {
      "id": "al-dependent-exemption-tiers",
      "field": "params.incomeTax.deductions.2.perDependentSchedule",
      "description": "Per-dependent exemption drops from $1,000 to $500 when Alabama AGI exceeds $50,000 and to $300 above $100,000 (per dependent); $1 more AGI can raise tax by up to $25 (5% × $500) per dependent."
    },
    {
      "id": "al-standard-deduction-steps",
      "field": "params.incomeTax.deductions.0.phaseout",
      "description": "Standard deduction falls in steps ($25/$175/$88/$135 per $500 or $250 of AGI or part thereof); each step raises tax by up to $8.75 for $1 more AGI."
    }
  ],
  "notModelled": [
    "Federal income tax deduction uses federal tax after nonrefundable credits; Alabama's worksheet also subtracts refundable credits (EIC, additional child tax credit, refundable AOTC) — MoneyOtter does not, so the deduction is overstated when those credits apply",
    "Alabama tax tables (taxable income under $100,000) are in $50/$100 rows evaluated at the row midpoint and rounded to whole dollars; MoneyOtter computes the exact rate-schedule tax (differences up to about $2.50)",
    "Local occupational license taxes (Birmingham, Bessemer, Gadsden, etc.) — not modelled",
    "Itemized deductions; overtime pay exemption (Act 2023-421, expired 30 June 2025); Alabama State Retirement System employee contributions, which are taxable for Alabama (MoneyOtter treats 401(k)/403(b)/457(b) deferrals as excluded)",
    "Married filing jointly federally but separately for Alabama (federal tax apportioned by AGI)"
  ],
  "sources": [
    {
      "field": "period",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf",
      "title": "Alabama DOR — 2025 individual income tax (calendar year)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.kind",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/whbooklet_0126.pdf",
      "title": "Graduated/flat income tax on wages: Alabama DOR — withholding booklet (rev. January 2026), formula step 5: 2% first $500, 4% next $2,500, 5% over $3,000 (MFJ: $1,000/$5,000/$6,000) — Code of Ala. §40-18-5",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.incomeBase",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf",
      "title": "Alabama DOR — 2025 Form 40 booklet: wages are W-2 'State wages' (Schedule W-2); Alabama AGI line 10",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.brackets",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/whbooklet_0126.pdf",
      "title": "Alabama DOR — withholding booklet (rev. January 2026), formula step 5: 2% first $500, 4% next $2,500, 5% over $3,000 (MFJ: $1,000/$5,000/$6,000) — Code of Ala. §40-18-5",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions.0",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf",
      "title": "Alabama DOR — 2025 Form 40 booklet, Standard Deduction chart (page 9)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions.0",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/whbooklet_0126.pdf",
      "title": "Alabama DOR — withholding formula: standard deduction 'less $25 [MFJ $175; MFS $88 per $250; HoH $135] for each $500 increment or part thereof of GI above $25,999 [MFS $12,999]', floors $2,500 / $5,000",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions.1",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf",
      "title": "Alabama DOR — 2025 Form 40 line 12 and Federal Income Tax Deduction Worksheet (page 31), no cap",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions.2",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf",
      "title": "Alabama DOR — 2025 Form 40 lines 13–14: personal exemption $1,500 (single/MFS) / $3,000 (MFJ/HoH); dependent exemption $1,000 (AGI ≤ $50,000), $500 (≤ $100,000), $300 (over $100,000)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.deductions.2",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/whbooklet_0126.pdf",
      "title": "Alabama DOR — withholding booklet (rev. January 2026): same personal and dependent exemption amounts for 2026",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.incomeTax.credits",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf",
      "title": "No standard personal credit in Alabama",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.conformity",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/whbooklet_0126.pdf",
      "title": "Alabama DOR — withholding booklet: amounts excluded under IRC §125, 401(k), 403(b), 408(k), 457 are not Alabama wages",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.conformity",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf",
      "title": "Alabama DOR — 2025 Form 40 booklet, Part II adjustments: contributions to a Health Savings Account deductible to the extent allowed federally",
      "retrieved": "2026-10-07"
    },
    {
      "field": "params.programmes",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/whbooklet_0126.pdf",
      "title": "Alabama DOR — withholding booklet (income tax withholding only; no employee-paid state payroll programme)",
      "retrieved": "2026-10-07"
    },
    {
      "field": "rounding",
      "url": "https://www.revenue.alabama.gov/wp-content/uploads/2026/01/25f40bk.pdf",
      "title": "MoneyOtter rounds lines to the cent",
      "retrieved": "2026-10-07"
    }
  ]
}