Alabama Capital Gains Calculator

Calculate your federal and Alabama capital gains tax liability

2025

Calculate Your
Alabama Capital Gains Tax

Alabama taxes capital gains as ordinary income at rates up to 5%.

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Alabama Capital Gains Tax Highlights

Taxes capital gains as ordinary income
Top rate of 5%
No special deductions
y

Enter Your Investment Details

Calculate your capital gains tax for Alabama

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📊 Enter your annual taxable income before including this capital gain. This determines your capital gains tax bracket.

📊 Choose your investment holding period

Calculator optimized for Alabama tax rates

Tax Calculation Results

Your capital gain is: $0.00
Estimated capital gains tax: $0.00
Federal Tax: $0.00
Alabama Tax: $0.00
Net Proceeds After Tax: $0.00
Effective Tax Rate: 0.00%
Disclaimer: Estimate excludes NII taxes, deductions, credits, and losses. Consult a tax advisor.

How Alabama Taxes Capital Gains

Alabama taxes capital gains as ordinary income at rates up to 5%.

2025 Tax Brackets

0% Rate (Single): Up to $48,350
15% Rate (Single): $48,351 - $533,400
20% Rate (Single): Over $533,400

Alabama Tax Details

Tax Rate Structure

Top Rate: 5.00%

Capital gains are taxed as ordinary income using progressive tax brackets.

Key Requirements

Filing Required: If gain exceeds threshold
State Due Date: April 15

Alabama Tax Strategies

  • • Consider timing of asset sales for tax efficiency
  • • Coordinate with federal capital gains strategies
  • • Review loss harvesting opportunities

• Consult with Alabama tax professional for complex situations

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Real Estate in Alabama

Real estate capital gains in Alabama are subject to both federal and state tax considerations:

Alabama Real Estate Tax Rate

Real estate capital gains in Alabama are taxed as ordinary income up to 5.00%.

Primary Residence

Federal Rules

Federal Exclusion: $250K/$500K
Holding Period: 2 of 5 years

Alabama State Rules

State tax applies to gain above federal exclusion

Must file state return if gain exceeds exclusion

Additional Requirements:
  • • Follows federal IRC Section 121 rules.

Investment Property

Tax Deferral Strategies

1031 Like-Kind Exchanges

Defer federal taxes on investment property exchanges

1031 Conformity: ✓ Yes
Bonus Depreciation: ✓ Allowed

Transfer Costs

Transfer Tax

State Rate: $0.50 per $500
Paid By: negotiable
Available Exemptions:
  • • Certain transfers between spouses
  • • Governmental entities

Recording Fees

Deed Recording: Varies by county, typically around $10-$25 for the first page.
Mortgage Recording: Varies by county; a mortgage tax of $0.15 per $100 of the principal amount is also levied.
Additional Fees:
  • • Fees are set at the county level.
Special Deductions & Notes:
  • • Standard federal depreciation rules apply.

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Property Tax Exemptions

Homestead

$5K

Maximum exemption

Senior (65+)

$0K

Additional exemption

Veteran

$0K

Disabled veteran exemption

Alabama Real Estate Specifics

• Alabama levies a deed recordation tax of $0.50 per $500 of value. [4, 30]

• A mortgage recordation tax of $0.15 per $100 of the mortgage amount is also charged. [4]

• All residents age 65 or older are exempt from state property taxes.

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Alabama Filing Requirements

Due Dates
Annual Return: April 15
Extension: October 15
Quarterly Est.:
January 15
April 15
June 15
September 15
Required Forms
  • • Form 40
  • • Capital gains schedule
  • • Federal Form 8949 & Schedule D
Payment Options
  • • Online payment portal
  • • Electronic funds transfer
  • • Check or money order

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Compare Alabama to Other States

florida
georgia
tennessee

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© 2025 CapitalGainsTaxCalculator.us - For informational purposes only. Consult a tax professional for advice.