Finance · Alabama · Tax year 2026

Alabama Self-Employment Tax Calculator 2026

On $100,000 of 2026 self-employment profit, a single Alabama sole proprietor with no other income owes about $26,713: $14,130 of self-employment tax, $8,235 of federal income tax, and $4,348 of Alabama income tax. That is 26.7% of profit, or $6,678 for each quarterly estimated payment.

Against its neighbors, the same $100,000 of profit costs $459 less in Georgia and $4,348 less in Florida.

State income tax: 2% to 5%
Alabama tax on $100,000: $4,348
National rank: #14 highest of 51
Set aside on $100,000: 26.7%
State estimated payments: Form 40ES
LLC filing fee: $200
State sales tax: 4% + local

State

AlabamaChange state

Net self-employment profit (2026)

Other income (W-2 wages, spouse, interest)

More options

Retirement + health insurance deductions

Local income tax rate (optional)

Service business (consulting, law, health, accounting, financial services, performing arts). Only matters for the QBI deduction at higher incomes.

Enter your net profit — revenue minus business expenses — to see how much to set aside and what to pay each quarter.

A 2026 planning estimate using the standard deduction, not a tax return: it ignores credits, itemized deductions, and AMT. All calculations happen in your browser. Nothing is stored.

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Alabama self-employment tax at common profit levels

2026 estimates for a single filer with no other income, using the standard deduction and no retirement or health insurance deductions. "Set aside" is the share of profit to move into a tax account; "Quarterly" is each of the four estimated payments.

Profit	SE tax	Federal income tax	Alabama tax	Total	Set aside	Quarterly
$40,000	$5,652	$1,775	$1,671	$9,098	22.7%	$2,275
$60,000	$8,478	$3,559	$2,582	$14,619	24.4%	$3,655
$80,000	$11,304	$5,344	$3,493	$20,140	25.2%	$5,035
$100,000	$14,130	$8,235	$4,348	$26,713	26.7%	$6,678
$150,000	$21,194	$16,413	$6,439	$44,047	29.4%	$11,012
$250,000	$29,851	$36,509	$10,435	$76,795	30.7%	$19,199

Married filing jointly

The same profit, earned by one spouse filing jointly with no other household income.

Profit	SE tax	Federal income tax	Alabama tax	Total	Set aside	Quarterly
$40,000	$5,652	$398	$1,500	$7,550	18.9%	$1,887
$60,000	$8,478	$1,885	$2,426	$12,788	21.3%	$3,197
$80,000	$11,304	$3,550	$3,342	$18,196	22.7%	$4,549
$100,000	$14,130	$5,335	$4,253	$23,717	23.7%	$5,929
$150,000	$21,194	$9,795	$6,530	$37,520	25.0%	$9,380
$250,000	$29,573	$25,154	$10,762	$65,490	26.2%	$16,373

How Alabama taxes self-employment income

Alabama starts from federal adjusted gross income (after the deduction for half of self-employment tax), then applies its own deductions, exemptions, and credits.

Standard deduction: $3,000 single, $8,500 joint, $5,200 head of household
Personal exemption: $1,500 single, $3,000 joint, $3,000 head of household
Top rate: 5%; your bracket on $100,000 of profit is 5%.

2026 Alabama income tax brackets (single)

Taxable income over	Up to	Rate
$0	$500	2%
$500	$3,000	4%
$3,000	and up	5%

2026 Alabama brackets (married filing jointly)

Taxable income over	Up to	Rate
$0	$1,000	2%
$1,000	$6,000	4%
$6,000	and up	5%

Alabama vs its neighbors

The same $100,000 of 2026 profit for a single sole proprietor, run through each state's rules. Federal tax is the same everywhere, so the difference is state income tax. Against its neighbors, the same $100,000 of profit costs $459 less in Georgia and $4,348 less in Florida.

State	State income tax	Total tax	Set aside	vs Alabama
Alabama	$4,348	$26,713	26.7%	—
Florida	$0	$22,365	22.4%	−$4,348
Georgia	$3,889	$26,254	26.3%	−$459
Mississippi	$2,985	$25,350	25.3%	−$1,363
Tennessee	$0	$22,365	22.4%	−$4,348

How the gap changes with profit

Extra tax (+) or savings (−) for a single filer if the same business were based in each of its neighbors instead of Alabama.

Profit	Florida	Georgia	Mississippi	Tennessee
$40,000	−$1,671	−$565	−$916	−$1,671
$60,000	−$2,582	−$548	−$1,084	−$2,582
$80,000	−$3,493	−$531	−$1,251	−$3,493
$100,000	−$4,348	−$459	−$1,363	−$4,348
$150,000	−$6,439	−$232	−$1,595	−$6,439
$250,000	−$10,435	+$554	−$1,758	−$10,435

What's different about Alabama for the self-employed

Includes Alabama's deduction for federal income tax paid and its sliding standard deduction. Alabama does not allow the deduction for half of self-employment tax, so this estimate adds it back.
About two dozen cities charge an occupational tax on earnings, including Birmingham and Bessemer at 1% and Gadsden at 2%. Enter yours under "Local income tax rate".
Alabama LLCs pay the Business Privilege Tax (based on net worth) instead of filing a Secretary of State annual report; for tax year 2026, an entity whose privilege tax would be $100 or less has no filing requirement, which covers most small single-member LLCs.
A new LLC's initial Business Privilege Tax return (Form BPT-IN) is due within two and one-half months after it organizes or starts doing business in Alabama, with no extension available (not required if the tax is $100 or less).
Businesses need a state/county privilege license, issued by the county Probate Judge or License Commissioner where the business is located.

Alabama estimated payments and deadlines

Alabama collects its own estimated income tax with Form 40ES, separately from the IRS. Required if you expect to owe at least $500 in Alabama tax for 2026 after subtracting 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 2025 AGI was over $150,000).

Installment	Alabama due date	Share of the year	Federal due date
Q1	April 15, 2026	25%	April 15, 2026
Q2	June 15, 2026	25%	June 15, 2026
Q3	September 15, 2026	25%	September 15, 2026
Q4	January 15, 2027	25%	January 15, 2027

The 2026 Alabama income tax return is due April 15, 2027.

File and pay through the Alabama Department of Revenue.

LLC fees and sales tax in Alabama

Forming an LLC: $200 state filing fee.
Business Privilege Tax return: a fee that depends on how you file, every year, due with your federal return, and only if the tax is over $100.
Sales tax: 4% statewide, plus local rates in many cities and counties. Use the Sales Tax Calculator to price a sale.

A single-member LLC is taxed exactly like a sole proprietorship unless it elects S or C corporation status, so the self-employment tax figures on this page apply either way.

Alabama self-employment tax FAQs

How much should I set aside for taxes if I'm self-employed in Alabama?

For a single filer with no other income, about 24.4% of profit at $60,000, 26.7% at $100,000, and 29.4% at $150,000 for 2026, covering self-employment tax, federal income tax, and Alabama income tax. Enter your own numbers in the calculator for a personal figure.

Does Alabama tax self-employment income?

Yes. Alabama taxes self-employment profit as ordinary income at 2% to 5%. Alabama starts from federal adjusted gross income (after the deduction for half of self-employment tax), then applies its own deductions, exemptions, and credits.

When are Alabama estimated tax payments due for 2026?

April 15, 2026, June 15, 2026, September 15, 2026, January 15, 2027, using Form 40ES. Required if you expect to owe at least $500 in Alabama tax for 2026 after subtracting 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 2025 AGI was over $150,000).

How much does an LLC cost in Alabama?

The state filing fee to form an LLC is $200. Business Privilege Tax return: a fee that depends on how you file, every year, due with your federal return, and only if the tax is over $100. A single-member LLC is still taxed like a sole proprietorship for federal purposes, so the self-employment tax figures above apply.

Sources and method

Computed with the Self-Employment Tax Calculator's 2026 engine and Alabama's rules from the sources below. Planning estimates, not a return. Last checked 2026-10-08.