1031 Exchange Alabama

Alabama Opportunity Zones

Capital Gains Rates

State Rate 5.00%

Local Rate 0.50%

Deduction None

Combined Rate 30.00%

Additional State Capital Gains Tax Information for Alabama

Alabama allows taxpayers to deduct federal income taxes from their state taxable income. The Combined Rate accounts for Federal, State and Local tax rates on capital gains income, the 3.8 percent Surtax on capital gains and the marginal effect of Pease Limitations (which results in a tax rate increase of 1.18 percent).

Additional State Income Tax Information for Alabama

For single taxpayers with AGI below $23,000, the standard deduction is $2,500. This standard deduction amount is reduced by $25 for every additional $500 of AGI, not to fall below $2,000. For Married Filing Joint taxpayers with AGI below $23,000, the standard deduction is $7,500. This standard deduction amount is reduced by $175 for every additional $500, not to fall below $4,000. For all taxpayers claiming a dependent with AGI of $20,000 or less, the dependent exemption is $1,000. This amount is reduced to $500 per dependent for taxpayers with AGI above $20,000 and equal to or less than $100,000. For taxpayers with over $100,000 AGI, the dependent exemption is $300 per dependent. Alabama allows taxpayers a deduction for total federal tax liability from their federal return less any federal tax credits claimed.

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Source: Tax Foundation State Individual Tax Rates and Brackets for 2020 as of March 2020