Alabama State Tax ― Personal Income Tax
The Alabama Department of Revenue imposes a personal income tax on all income (unless specifically exempted by law) including wages, salaries, interest, dividends, rents, royalties, and lottery/gambling winnings.
Full-year residents, part-year residents, and nonresidents are subject to tax (with certain income/filing requirements). There are four filing status options on the Alabama return: single, married filing a joint return, married filing a separate return, and head of family. Returns are due by April 15th.
The individual income tax rates are as follows (for single or married separate filers):
- 2% on the first $500 of taxable income
- 4% on taxable income between $501 and $3,000
- 5% on taxable income of $3,001 or more
Alabama State Tax ― Corporate Income Tax
Alabama also imposes a corporate income tax at a rate of 6.5% on all corporations doing business in the state. Returns are due by the 15th day of the third month following the close of the tax year.
Alabama State Tax ― Sales & Use Tax
All sales of tangible personal property (i.e. retail sales) in Alabama are subject to sales tax. The sales tax is a privilege tax collected from consumers by sellers, who remit the tax to the Department of Revenue. The general state sales tax rate is 4%. Local sales tax rates are also imposed (by counties and cities) with rates that vary.
The consumer use tax, a component of the sales tax, is imposed on the use, storage, or consumption of items for which Alabama sales tax was not properly collected. The use tax is a personal liability of the consumer.
Alabama State Tax ― Property Tax
Property tax is administered on the local level. All real property and personal property (except public utility property) is subject to taxation by local governments. County officials assess and collect property taxes, and the revenue funds local services and programs. There are four classes of property in Alabama, each class with its own assessment ratio. For more information about property tax, contact your local assessor’s office.
Alabama State Tax Forms
Form 40 (Alabama Individual Income Tax Return)
Form 40A (Alabama Individual Income Tax Return – Short Form)
Form 40NR (Alabama Individual Nonresident Income Tax Return)
Form 40ES (Estimated Income Tax Payment Voucher)
Form 40-V (Individual Income Tax Payment Voucher)
Form 20C (Corporation Income Tax Return)
Alabama State Tax Resources
Alabama Department of Revenue: www.ador.state.al.us
Alabama Department of Revenue “Electronic Services Center” (for filing taxes, paying taxes, and more): www.revenue.alabama.gov/eservices
Check your Alabama state tax refund status online: revenue.alabama.gov/Refunds/refundstatus
Alabama Department of Revenue “Property Tax Division:” www.ador.state.al.us/advalorem
Directory of Alabama county property tax assessors: www.revenue.alabama.gov/advalorem/countyoffices/statemap