Alabama Self-Employment Tax Calculator

Calculate your self-employment tax, federal income tax, and Alabama state income tax as a freelancer or 1099 contractor. Alabama has a progressive income tax with rates from 2% to 5%.

Annual Tax Breakdown

1099 Income
$85,000
Business Expenses
-$10,000
Net Profit
$75,000
Net Earnings (92.35%)(SE tax base)
$69,263
Social Security (12.4%)
-$8,589
Medicare (2.9%+)
-$2,009
Total SE Tax
-$10,597
SE Deduction (50%)(reduces income tax)
$5,299
Federal Income Tax
-$6,794
State Income Tax
-$3,585
Total Tax Owed
$20,976

Summary

Total Income
$75,000
Total Taxes
-$20,976
After-Tax Income
$54,024
Effective Tax Rate(on total income)
28.0%

Quarterly Estimated Payments

Q1 (Jan-Mar)Due April 15
$5,244
Q2 (Apr-May)Due June 15
$5,244
Q3 (Jun-Aug)Due September 15
$5,244
Q4 (Sep-Dec)Due January 15 (next year)
$5,244
Each Quarterly Payment
$5,244

Tax Breakdown

See your complete freelancer financial picture

Your estimated quarterly tax payment is $5,244. Model your freelance income alongside expenses, savings, and investments in the full simulator.

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Alabama Tax Overview for Freelancers

Alabama has a progressive income tax with rates from 2% to 5%. The standard deduction is relatively low at $2,500 for single filers. Self-employed individuals in Alabama pay federal self-employment tax (15.3%) plus federal income tax, and Alabama state income tax on their net self-employment earnings.

Low standard deduction ($2,500 single)Does not tax Social SecurityLocal taxes may apply in some cities

Self-Employment Taxes in Alabama

If you work as a freelancer or independent contractor in Alabama, your tax situation involves multiple layers: federal self-employment tax, federal income tax, and Alabama state income tax. Understanding how each component works helps you plan your quarterly estimated payments and maximize your deductions.

Alabama Income Tax for Freelancers

Alabama has a progressive income tax with rates from 2% to 5%. The standard deduction is relatively low at $2,500 for single filers.

Cost of Living for Freelancers in Alabama

Alabama has a cost of living roughly 13% below the national average, with particularly affordable housing and utilities. As a freelancer in Alabama, your effective earnings depend not just on your tax rate but also on what your after-tax income can buy. Consider local costs for housing, coworking spaces, and daily expenses when setting your rates.

Financial Tips for Alabama Freelancers

  • Alabama has one of the lowest costs of living in the US — stretch your paycheck further
  • Property taxes in Alabama are among the lowest nationally, reducing housing costs
  • Alabama does not tax Social Security benefits
  • Consider maximizing 401(k) contributions since Alabama taxes retirement income

Key Alabama Tax Features

  • Low standard deduction ($2,500 single)
  • Does not tax Social Security
  • Local taxes may apply in some cities

Model Your Alabama Freelance Finances Over Time

This calculator shows your Alabama tax bill. Trajectoryy's full simulator models your freelance income alongside expenses, savings, investments, and more — month by month for years into the future.

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Compare Alabama with Other States

TennesseeNo income taxGeorgia5.49% top rateMississippi4.7% top rateCalifornia13.3% top rateNew York10.9% top rateTexasNo income tax

Frequently Asked Questions

How is self-employment tax calculated in Alabama?
Self-employed workers in Alabama pay federal self-employment tax (15.3% on 92.35% of net earnings), federal income tax, and Alabama state income tax. Alabama has a progressive income tax with rates from 2% to 5%. The standard deduction is relatively low at $2,500 for single filers.
How much will I owe in quarterly taxes as a freelancer in Alabama?
Your quarterly estimated tax payment in Alabama depends on your total tax liability — including SE tax, federal income tax, and Alabama state income tax. Use the calculator above to estimate your quarterly payments. As a general rule, freelancers should set aside 25-35% of their net income for taxes.
What business deductions are available for Alabama freelancers?
Freelancers in Alabama can deduct the same federal business expenses as in any state: home office, equipment, software, health insurance, vehicle expenses, and more. These deductions also reduce your Alabama state taxable income, providing additional state tax savings.
Does Alabama have any special taxes for self-employed workers?
Alabama does not have a separate self-employment tax. However, your net self-employment income is subject to Alabama's regular income tax (5% top rate) in addition to federal self-employment tax and federal income tax.
Should I form an LLC or S-Corp as a freelancer in Alabama?
The decision to form an LLC or S-Corp in Alabama depends on your income level. Generally, if your net self-employment income exceeds $50,000-$60,000, an S-Corp election may save you money by allowing you to pay yourself a reasonable salary (subject to FICA/Medicare) while taking the rest as distributions (not subject to SE tax). Consult a Alabama tax professional for advice specific to your situation.

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Federal Tax-$7,462
State Tax-$2,384
FICA + Medicare-$4,973
Net Pay$50,181
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