Alabama Department of Revenue, Alabama Tax

Alabama Business Corporate Tax, Alabama Personal Income Tax, Alabama Sales Tax Rates

What is the Alabama corporate net income tax rate(s)?

6.5%

What is the Alabama personal net income tax rate(s)?

0-$500 = 2%
$500-$3000 = 4%
$3,000 + = 5%

Local City/County income tax of .19%

What is the average Alabama sales tax rate(s)?

6.15%. The state has a 4% tax, but the average local tax is 2.15% making a total of 6.15%

Are there standard deductions?

Single:  $2,000
Joint:  $4,000

Are there personal exemptions?

Single:  $1,500
Dependants:  $300

What forms do you file for your Alabama taxes?

C corporations:   Form 20C-Alabama Corporation, 20-C-C for Alabama consolidated corps
S corporations:  Form 20S, Schedule K1, and NRA for non-residents
Partnerships:  Form 65, Schedule K1
Individual:  Form 40

Estimated tax payments?

Form 40ES if estimated tax will be at least $100 for income from non-wage profits of $3,500 or more. Follows federal estimated tax format.

Alabama Department of Revenue:

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