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May 4, 2022
2022-0716

Alabama Department of Revenue issues revised income tax withholding tables for 2022

In late April, the Alabama Department of Revenue issued revised Withholding Tax Tables and Instructions for Employers and Withholding Agents to reflect changes to the standard deduction and dependent exemption amounts under legislation enacted in 2022. The personal income tax rates are unchanged.

The revised income tax withholding tables are effective immediately.

Specifically, Governor Kay Ivey signed into law H.163, which retroactive to January 1, 2022:

  • Increases the standard deduction for married taxpayers filing a joint return by $1,000, and for single, head of family and married filing separately taxpayers by $500
  • Increases the gross income qualifying threshold for the $1,000 dependent exemption from $20,000 to $50,000, allowing more taxpayers to qualify

H. 163 was one of several tax bills enacted in 2022 to provide tax relief to Alabama workers, farmers, retirees, and others. (Governor Ivey press release, April 11, 2022.)

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

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