Alabama Withholding Tax

What is Alabama Withholding Tax?

Withholding tax is the amount of employee’s pay withheld by the employer and sent directly to the government as partial payment of state income tax.  The amount of withholding tax depends on employee’s income.  The Alabama state income tax is between 2.0%-5.0%. Therefore, the withholding tax should be similar to the state income tax range.

Employees do not need to take any action.  The employers/businesses will need to deduct the withholding tax from employee’s paycheck and submit and file the withholding tax to Alabama Dept of Revenue.

How much is Alabama Withholding Tax?

Since Alabama withholding tax withheld is used to pay for employee’s Alabama state income tax, the withholding tax should correlate with state income tax bracket.  The Alabama state income tax rate ranges from 2.0% to 5.0%.  The withholding tax should be within the state income tax rate range.

State Year  State Income Tax Rate Withholding Tax Rate
Alabama 2015 2%-5% 2%-5%

How to File Alabama Withholding Tax?

Employees do not need to do anything.

Employers/Businesses need to register withholding tax account with Alabama Department of Revenue.  Depending the size of the company, every three months, the employers have to file a quarterly withholding reports and submit withholding tax to the Department of Revenue.  Most small businesses need to file quarterly while larger businesses need to file more frequently.

Alabama Withholding Tax Forms

Form Number Form Description
Form A4  Withholding Certificate
Form AL-1  Withholding Tax Return
Form COM 101 Withholding Tax Registration
Alabama Withholding Tax Forms

How to Register for Alabama Withholding?

Businesses with employees will need to register for Alabama Withholding account. The easiest and fastest way to register for Withholding tax is online.

Click here to register for Alabama Withholding Tax.

When to File and Deadlines for Alabama Withholding Tax Return

Generally, Alabama Withholding Tax returns have to be filed every three months, ending on March 31 (Q1), June 30 (Q2), September 30 (Q3) and December 31 (Q4). Typically, the deadline to mail Alabama Withholding Tax return is the last day of the following month.

Quarter Months Deadline
Q1 January - March April 30
Q2 April - June July 31
Q3 July - September October 31
Q4 October - December January 31

Alabama AL Withholding Tax Contacts and Address:

For more information or help on Alabama Withholding Tax, please use the contact information below

Website Alabama Dept of Revenue
Telephone 334-242-1300
Address Alabama Department of Revenue
50 North Ripley
Montgomery AL 36104

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