State Income Tax Range The lowest rate is The tax rate is 2% (on up to $1,000 of tax-deductible earnings for joint filers married to each other, and as high as $500 for everyone else). Maximum: 5% www.traveltoearth.net traveltoearth travel to earth Website travel to earth net (on more than $6,000 of tax-deductible income for joint filers married to each other, and more than $3,000 for all others). Certain Alabama municipalities also have occupational tax rates on wages and salaries.