Jurisdiction detail
Alabama tax guide
A seeded subnational profile for Alabama, built on the schema from the world-class expansion plan.
Country
United States
Tax year
2026
Authority
Alabama Department of Revenue
Overview
Alabama has low property taxes but high combined sales taxes. Business privilege tax is separate from corporate income tax.
Individual income tax
Alabama's progressive individual income tax tops at 5 percent on income above $3,000.
Type: progressive
Business tax
Alabama corporate income tax at 6.5 percent plus business privilege tax.
Reference rate: 6.5%
Sales or indirect tax
Economic nexus applies for remote sellers.
Base rate: 4%
Local rates add 1 to 7 percent; combined rates often above 9 percent.
Deadlines and forms
April 15 for individuals; corporate returns follow federal due dates.
Official authority
Visit Alabama Department of RevenuePrimary sources
- Alabama Department of RevenueVerified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.