See all 50 states on one map and compare side-by-side. Start 7-day free trial — no card required
Alabama
Employee Obligations (Which Returns YOU Must File)
Alabama has a Convenience of Employer rule that affects Ohio residents. If your employer is in Alabama and you work remotely from Ohio, Alabama may still tax your paycheck. File a nonresident Alabama return plus your Ohio return and claim the Ohio IT 1040 Schedule of Credits credit. Consider consulting a CPA.
Employer Obligations (What Your Employer Must Withhold & Remit)
Alabama's Convenience of Employer rule may require withholding Alabama tax even if the Ohio employee works 100% remotely. Register for Alabama withholding and unemployment. May need to withhold AL tax for a remote MN employee due to the COE rule. Unemployment is approximately 2.7% on the first $8,000 of wages.
City & Local Income Taxes (Extra Filings Beyond the State Return)
Over 25 Alabama cities charge occupational taxes on nonresidents. Birmingham 1%, Gadsden 2%, Opelika 1.5%, Auburn 1%, and others range from 0.5% to 2%.
Remote Work Tax Risk — Convenience of Employer (COE) Rule
Alabama has a full Convenience of Employer rule that affects Ohio residents. If your employer is based in Alabama and you work remotely from Ohio, Alabama may tax your entire paycheck as if you worked there.
Related guides
More from Ohio · Cross-State Work
See all cross-state workpairs →Moving to Alabama from elsewhere · Cross-State Work
This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.