Alabama Gov. Kay Ivey signs a bill to exempt overtime pay, defined as pay for more than 40 hours a week, from the state income tax at the Hyundai auto assembly plant in Montgomery.

The Alabama Legislature has approved a measure that would exempt overtime pay from the state’s 5% income tax. The tax cut will begin in 2024 and expire in June 2025. (Lynsey Weatherspoon/Getty ...

Alabama’s tax exemption on hourly workers’ overtime pay ended Monday and will have cost the state — and helped some workers ...

Alabama currently has a state income tax with rates ranging from 2% to 5%. This bill would also put Alabama and Auburn on equal footing, as Tennessee, Florida and Texas are SEC states with no ...

Alabama tax rebate checks are now on the way to approximately 1.9 million state residents. After changing the rebate amounts twice, Alabama lawmakers eventually settled on one-time payments of up ...

The other bill would gradually reduce the 5% state income tax rate — paid on taxable income over $3,000 for single people and $6,000 for taxpayers who are married and file their taxes together ...

Tax rates: Alabama’s state income tax rates range from 2% to 5% based on income brackets: 2% on the first $500 (single filers) or $1,000 (joint filers) ...