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State Wage and Tax Rates for 2018

Staying on top of federal tax rates and minimums is one thing—juggling local ones, especially if you’re a multistate employer, is even harder.

From Alabama to Wyoming, we’ve got you covered. Below is everything you need to know about state tax rates and rules for this year.

*Please note that this information is accurate as of December 31, 2017.*

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  • Minimum Wage Rates Explained +

    Since 1938, the United States has had a federally-mandated minimum wage—currently $7.25 per hour. Some states and cities, however, have their own, higher minimums that employers are required to follow.

    The rates for regular and tipped employees are on the right. Keep in mind that your specific city may have a higher minimum wage in place.

    Note that “maximum tip credit” refers to the difference between the regular and tipped minimum wages. If an employee’s hourly tips fall under this amount, the employer may be required to compensate them. State laws on this vary.

  • Income Taxes Explained +

    If you live in the U.S., there’s a good chance you don’t just pay federal income taxes—over forty states impose income taxes on individuals as well. On top of those state taxes, many city governments levy their own.

    The way income taxes are calculated vary widely from state to state. Some have a single rate that applies to all taxable income, but most have multiple rates and brackets. Supplement this guide by visiting your state’s tax or finance website.

  • Unemployment Insurance Explained +

    Unemployment Insurance is funded jointly through both federal and state payroll taxes. State unemployment insurance (SUI) rates vary from employer to employer. Keep in mind that your state labor department should mail your business’s specific rate to you each year.

    Note that some states allow businesses to make a voluntary contribution to their unemployment tax account in order to reduce their rate the following year.

    You can find a rundown of state-by-state rates and maximums on the right.

Alabama Minimum Wage

Minimum Wage $7.25
Minimum Wage (Tipped Employee) $2.13
Maximum Tip Credit $5.12

Alabama State Income Tax

State Withholding Tax Brackets more details
Supplemental Wage Rate 5.0%

SINGLE

Tax Bracket Tax rate
$0+ 2%
$500+ 4%
$3,000+ 5%

MARRIED FILING JOINTLY

Tax Bracket Tax rate
$0+ 2%
$1,000+ 4%
$6,000+ 5%

Alabama Unemployment Insurance

Maximum Taxable Earnings per year $8,000
Employee Deduction None
Employer Tax Rates (range) 0.6% to 6.8%
New Employer Rate 2.7%
Voluntary Contribution Permitted No

The content of this publication is provided for informational purposes only and does not contain or constitute tax or legal advice. You should not act on this information without seeking tax or legal professional counsel.

Hide Details
  • Minimum Wage Rates Explained +

    Since 1938, the United States has had a federally-mandated minimum wage—currently $7.25 per hour. Some states and cities, however, have their own, higher minimums that employers are required to follow.

    The rates for regular and tipped employees are on the right. Keep in mind that your specific city may have a higher minimum wage in place.

    Note that “maximum tip credit” refers to the difference between the regular and tipped minimum wages. If an employee’s hourly tips fall under this amount, the employer may be required to compensate them. State laws on this vary.

  • Income Taxes Explained +

    If you live in the U.S., there’s a good chance you don’t just pay federal income taxes—over forty states impose income taxes on individuals as well. On top of those state taxes, many city governments levy their own.

    The way income taxes are calculated vary widely from state to state. Some have a single rate that applies to all taxable income, but most have multiple rates and brackets. Supplement this guide by visiting your state’s tax or finance website.

  • Unemployment Insurance Explained +

    Unemployment Insurance is funded jointly through both federal and state payroll taxes. State unemployment insurance (SUI) rates vary from employer to employer. Keep in mind that your state labor department should mail your business’s specific rate to you each year.

    Note that some states allow businesses to make a voluntary contribution to their unemployment tax account in order to reduce their rate the following year.

    You can find a rundown of state-by-state rates and maximums on the right.