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Alabama Taxes

Alabama State Tax

FULL List to Alabama Tax Forms

Individual Income Tax Forms

Form 40X Individual Income Tax Return

Form IT: 489 Taxpayer Refund Information

Form 40X Instruction

Corporate Income Tax Forms

Form 20C Corporation Income Tax Return

Form 20C-C Consolidated Corporate Income Tax Return

Sales Tax Forms

Exemption Form

Department of Revenue Sales Tax E-Filing

Property Tax Forms

Form ADV-LD-10 Certificate of Redemption

Form ADV-LD-13 Certificate of Land Sold and Bought By the State

Form ADV-40 Business Personal Property Return

Primary Concerns:

Of recent concern in the state of Alabama has been the state government’s rulings in regard to the 2008 Stimulus package, which were decided and determined in a special session of the state legislature in 2008.

Individual Income Tax:

All individuals living in Alabama or drawing an income in Alabama, either through employment or investment, are subject to state income tax laws. For single individuals, the rates are 2% of taxable income of less than $500, 4% of taxable income between $500 and $3,000, and 5% of all income over $3,000.

Full or part time resident’s single individuals must file tax returns if their gross income is over $4000. Head of Family must file if gross income is over $7,700.

Alabama businesses are obligated to engage in withholding taxes from an employee’s income, which can be computed under the rates outlines above, or more comprehensively using standard deductions computed with any relevant dependency exemptions.

Corporate Income Tax:

All businesses that reside in Alabama or earn income in Alabama are subject to Alabama state income tax, and the current income tax rate is 5%. All liabilities over $750 must be tendered to the state via electronic funds transfer (EFT).

A business in Alabama is not usually viewed as being distinctive by the nature of the corporation.

Property Tax:

All property in Alabama falls into four classes, each with their own assessment rate: Utililty (30%), private transportation (15%), private property (10%), and unclassified property (20%). The assessed value is then multiplied by the millage rate, which is determined both on the size of the property as well as local municipal services, such as schools. From the Unadjusted Tax Bill, all exemptions are deducted, and that provides the taxpayer with their final, adjusted tax bill.

Sales Tax:

Alabama sales tax generally works on a system of having a set base tax, which is 4%, and then charging an additional percent of the purchase price based on the nature of the purchase or the means by which it is purchases. Other tax rates that could be added to the base involve automotive sale (2%, total 6%), farm machinery (1.5%, total 5.5%), manufacturing machinery (1.5%, total 5.5%), and amusement (4%, total 8%).

Lodging rates are very specified in Alabama by locations, with counties that are in the Mountain Lakes area charging a 5% rate, while all other lodging in the state is 4%.

All utilities up to $40,000 charge a 4% rate, with amounts higher requiring a flat amount plus an additional percentage. Telephone services have a flat tax of 6%, with mobile devices also charging 6% on all charges and services that come with the device.

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