Live in Alabama, work in Georgia
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Official tax guidance for both states
Check withholding, filing requirements and current forms with each state's tax agency.
- Alabama: Alabama Department of Revenue - Businesses (opens in new tab)
- Georgia: Department of Revenue (opens in new tab)
Agency directory checked 2026-10-01 against the IRS state-government directory. This verifies the agency links, not an individual tax result. Use forms for the year you are filing.
Before you use this estimate
This model assumes a full-year resident of Alabama, ordinary employee wages and all workdays physically in Georgia. Check exemption eligibility before treating a work-state amount of $0 as your own result. Withholding is a prepayment, not final tax liability. Other income, a move during the year, remote work and separate local taxes or credits can change the result.
State income tax: $4,242 a year
Modeled annual state income tax for living in Alabama and working in Georgia: about $4,242 on $100,000 of wages, $140 more than if you worked in Alabama.
Without wage reciprocity, the work state may tax wages earned there. Your home state generally offers a limited credit for eligible tax paid on the same income. Filing requirements, credit limits and local taxes need a separate check.
Tax guide and official sources: live in Alabama, work in Georgia
Official agency starting points: Alabama tax agency (opens in new tab) · Georgia tax agency (opens in new tab). These directory links identify the selected states' agencies, not your filing obligations. Check their individual-tax guidance and forms for the year you are filing.
This is the usual filing pattern, not a determination that you must file. Filing thresholds, age or dependent status, other income and withholding refunds can change which returns you need.
How this $100,000 estimate adds up
These steps follow the selected home, work state, salary and filing status. They reconcile the model's annual liability, not the amounts withheld from your paycheck.
| Step | Georgia work state | Alabama home state |
|---|---|---|
| Tax before the modeled other-state credit | $4,242 | $4,102 |
| Modeled other-state credit subtracted | $0 | $4,102 |
| Tax after that credit | $4,242 | $0 |
Total: $4,242 + $0 = $4,242 a year. Amounts are rounded for display. Work-state wage exemptions, when applicable, are already reflected in the first row; they are not an other-state credit.
The modeled credit is applied in Alabama, the home state. Actual eligibility and credit limits require the state instructions. Included county components stay in these amounts; excluded local taxes and credits stay excluded. Federal income tax, payroll programs and refund eligibility are outside this reconciliation.
State tax at different salaries
| Wages | To GA | To AL | Modeled total | If you worked in AL |
|---|---|---|---|---|
| $50,000 | $1,747 | $323 | $2,069 | $2,069 |
| $75,000 | $2,994 | $133 | $3,127 | $3,127 |
| $100,000 | $4,242 | $0 | $4,242 | $4,102 |
| $150,000 | $6,737 | $0 | $6,737 | $6,023 |
| $250,000 | $11,727 | $0 | $11,727 | $9,695 |
Single filer, all wages earned in Georgia, 2026 state tax rules, standard deductions. Local income taxes not included.
What to do
- Ask your employer to withhold Georgia tax. If Alabama's tax is higher, withhold the difference for Alabama too (or make estimated payments) to avoid an underpayment penalty.
- File the Georgia nonresident return first, then claim the credit for taxes paid to another state on your Alabama resident return.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Alabama: Several cities levy occupational taxes on wages earned in the city (e.g., Birmingham 1%, Bessemer, Gadsden, Opelika), applying to nonresident commuters (e.g., from GA/TN/MS).
Frequently asked questions
Do I pay Georgia income tax if I live in Alabama?
Yes. Georgia taxes wages earned there by nonresidents. On $100,000 that's about $4,242.
Do I have to file taxes in both Alabama and Georgia?
Usually yes: a nonresident return in Georgia and a resident return in Alabama, where you claim a credit for the tax paid to Georgia. File the Georgia return first.
Will I be taxed twice?
The modeled state credit reduces overlap on eligible wages; separate local taxes or sourcing differences can still leave additional tax. Alabama credits the tax you pay Georgia, so your total is about $4,242 on $100,000, compared with $4,102 if you also worked in Alabama. Local city or county taxes may still apply.
Related
- Live in Georgia, work in Alabama
- Moving from Alabama to Georgia
- Moving from Georgia to Alabama
- Live in Alabama, work in Florida
- Live in Alabama, work in Mississippi
- Live in Alabama, work in Tennessee
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.