1099 Quarterly Taxes in Alabama (2025-2026)
If you're self-employed in Alabama — freelancer, contractor, gig worker, or single-member LLC — you owe quarterly estimated taxes to two agencies: the IRS (federal) and Alabama Department of Revenue (state). Alabama's top marginal rate is 5.0%, applied progressively. Getting your estimates right matters because under-payment penalties stack on top of the actual tax owed.
Alabama state income tax (2025)
Alabama uses a progressive bracket system on top of federal tax. For single filers in 2025:
| Income (single filer) | Marginal rate |
|---|---|
| $0 – $500 | 2.00% |
| $500 – $3,000 | 4.00% |
| $3,000+ | 5.00% |
How to pay Alabama estimated taxes
Federal estimated tax due dates (April 15, June 16, September 15, 2026, and January 15, 2027) apply to your Alabama state estimated payments as well — most states piggyback on the federal schedule. Pay Alabama taxes through the Alabama Department of Revenue's online portal: myalabamataxes.alabama.gov. You can also mail Form 40ES with a check.
Alabama-specific quirk freelancers miss
Alabama allows a federal income tax deduction on the state return — meaning your federal tax is itemized off your Alabama taxable income. This is unusual; only six states do it. It can lower your effective AL rate considerably for high earners.
Common deductions for Alabama freelancers
- Alabama allows the same business expenses (home office, mileage, software, etc.) as federal.
- Half of SE tax is deductible federally; check Alabama's rules for state conformity.
- AL does not conform to the federal QBI deduction. Half-SE-tax deduction is allowed. SEP-IRA / Solo 401(k) reduce both federal and AL taxable income.
- SEP-IRA / Solo 401(k) contributions reduce both federal and Alabama taxable income.
- Self-employed health insurance premiums are deductible federally.