Alabama 2023 Tax Rates

Withholding Requirements

Employers and employees are subject to income tax withholding. There are federal and state withholding requirements

• Register as an employer on the Alabama Department of Revenue website

• Employee's Withholding Tax Exemption Certificate

  : A-4

• Nonresident Military Spouse Withholding Tax Exemption Certificate

  : A4-MS

• Withholding Method

  : Formula

• Supplemental Wage / Bonus Rate

  : 5%

Alabama Local Taxes

• Complete list of Alabama local taxes

Alabama State Unemployment Insurance (SUI)

• Alabama Wage Base

  : $8,000 for 2023

• Alabama SUI rates range from

  : 0.14% to 5.34% for 2023

• Alabama new employer rate

  : 2.7% for 2023
• Get your unemployment insurance rate: Alabama UI agency website

Alabama State Disability Insurance (SDI)

• None

Alabama Family Leave Insurance (FLI)

• None

Alabama State Labor Laws

• Alabama Minimum Wage

  : $7.25

• Alabama Termination Pay

  : no state provision

Alabama New Hire Reporting

• New Hire Unit
  Alabama Department of Labor
  649 Monroe Street, Room 2683
  Montgomery, AL 36131-0378
• Phone: 334-353-8491
• Fax: 334-242-8956
• newhire@labor.alabama.gov
• Alabama new hire online reporting

Remit Withholding for Child Support to

• Alabama Department of Human Resources
  Child Support Enforcement Division
  P.O. Box 304000
  Montgomery, AL 36130-4000
• Phone: 334-242-9300
• Fax: 334-242-0606
• csed@dhr.alabama.gov
• Alabama child support payment information

Alabama Reciprocal states

• None