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How Federal Income Tax Brackets Work. Say a married couple, filing jointly, in 2016, had a taxable income of $175,000. Each dollar over $151,900âor $23,100âwould fall into the 28% federal income tax bracket. However, the couples' total federal tax would have been $35,986âjust about 20%, of their adjusted gross income.
2015 Alabama Income Tax Table. Alabama has three marginal tax brackets, ranging from 2.00% (the lowest Alabama tax bracket) to 5.00% (the highest Alabama tax bracket). Each marginal rate only applies to earnings within the applicable marginal tax bracket. In Alabama, different tax brackets are applicable to different filing types. Married couples filing their Alabama income tax return jointly will usually have wider tax brackets than those filing separately or as an individual.