Alabama state income tax — ITIN filer guide

Alabama uses a graduated income tax from 2% to 5% (tax year 2026), administered by the Alabama Department of Revenue. This guide covers who must file, how filing with an ITIN works, whether the state EITC applies to you, and when refunds arrive.

GRADUATED: 2% – 5% · 3 brackets

  • State return form: Form 40
  • Deadline (tax year 2026): April 15, 2027 (automatic extension to file until October 15; payment still due April 15)
  • Who must file: Single: gross income of $4,000 or more; MFJ $10,500; Head of Family $7,700; MFS $5,250 (ALDOR current guidance, not tax-year-indexed)
  • State sales tax: 4%
  • Special regime: Federal income tax paid is deductible from Alabama taxable income (rare among states); top 5% rate starts at just $3,000 taxable (single)

Alabama refund timing

  • E-filed returns: within 90 days (ALDOR standard); first refunds of the season not issued before March 1
  • Paper returns: within 90 days (ALDOR standard); paper slower than e-file
  • Check your Alabama refund status

State tax agency

  • Alabama Department of Revenue — revenue.alabama.gov
  • Phone: 1-855-894-7391 (refund hotline)
  • Free filing option: My Alabama Taxes (MAT) — free state e-file; also Free File vendors. IRS Direct File discontinued nationwide for the 2026 season.

Facts verified 2026-06-11 against official state sources (primary source). Figures refresh with every dataset review.

Filing with an ITIN

Your ITIN is fully accepted on the Alabama state return — states accept the IRS-issued taxpayer number, the same one you use federally. The flow is always the same:

  1. Complete your federal return first (Form 1040 + ITIN)
  2. Transfer your federal figures to Form 40
  3. Apply state-specific deductions and credits
  4. E-file — My Alabama Taxes (MAT) — free state e-file; also Free File vendors. IRS Direct File discontinued nationwide for the 2026 season.
  5. Or visit a VITA site for free in-person preparation

Alabama state EITC — do ITIN filers qualify?

The federal EITC requires valid SSNs for you, your spouse, and qualifying children — ITIN filers can never claim it. What varies is the STATE credit:

Alabama has no state earned income tax credit (EITC). The federal EITC requires a valid SSN — ITIN filers cannot claim it in any state.

See how all 52 jurisdictions compare on the state tax hub and which tax credits ITIN filers can claim.

Last verified: 2026-06-11. Primary source: Alabama Department of Revenue.

General procedural information for educational purposes. Not legal or tax advice. State tax rates change frequently — verify current figures with the state agency before filing. For case-specific guidance, consult a tax professional, enrolled agent, or CPA.