Act No. 2022-297
By Rep. Lynn Greer, R-Rogersville, and Sen. Arthur Orr, R-Decatur
An increase in the optional standard deduction and the threshold at which the state imposes individual income taxes will apply to 2022 Alabama income taxes due in April of 2023.
“The exemption for families in Alabama hasn’t been increased in 15 years,” sponsor Rep. Lynn Greer, R-Rogersville, said.
Under Act No. 2022-297:
- the income threshold for the maximum dependent exemption increases from $20,000 to $50,000;
- the adjusted gross income floor for the optional standard deduction for taxpayers that are married filing jointly, head of family, and single goes from $23,000 to $25,500 and from $10,500 to $12,750 for taxpayers that are married filing separate;
- for taxpayers that are married filing jointly: the minimum standard deduction amount goes from $4,000 to $5,000 and the maximum standard deduction amount from $7,500 to $8,500; and
- for taxpayers that are married filing separate, head of family, and single: the minimum standard deduction amount goes from $2,000 to $2,500 and the maximum standard deduction amount from $3,750 to $4,250.
The governor signed the law April 11.
“It is important working families receive tax relief in these days of high inflation,” said Sen. Arthur Orr, R-Decatur, the Senate sponsor.
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