Alabama Department Of Revenue, Alabama Tax
Alabama Business Corporate Tax, Alabama Personal Income Tax, Alabama Sales Tax Rates
The taxes Alabama businesses pay each year:
Alabama corporations (C corps)
Alabama corporate net income tax = 6.5%
Alabama business privilege tax = $100 minimum
Federal corporate tax rate= 15% to 35%
Alabama limited liability companies (LLCs), LPs, LLPs, and S Corps
AL personal net income tax rates: 0 to $500 = 2%; $500 to $3000 = 4%; $3000+ = 5%
Alabama local city/county income tax = .19
Federal personal income tax rates = 10% to 39.6%
To learn more about these entities, see our Alabama LLC or Alabama corporation pages.
What is Alabama’s average sales tax rate?
6.15%. The state has a 4% tax rate, but average local sales tax rates equal 2.15% adding up to 6.15%.
Alabama standard deductions?
Personal exemptions in Alabama?
What tax forms do Alabama businesses file?
C corporations: Form 20C-Alabama Corporation; 20-C-C for Alabama consolidated corps.
S corporations: Form 20S, Schedule K1, and NRA for non-resident shareholders
LLCs (with multiple members), LPs, and LLPs: Form 65, Schedule K1
Individuals: Form 40,Schedule C
How Should Alabama Businesses Estimate Taxes?
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.
50 North Ripley Street
Montgomery, AL 36132
Website: Alabama Department of Revenue Homepage
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