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Controlling Your Taxes Your State Tax Obligations Alabama Taxes on Business Income in Alabama
Controlling Your Taxes Your State Tax Obligations Alabama Taxes on Business Income in Alabama
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PrintTaxes on Business Income in Alabama
The following are the major tax types of income-based taxes that affect small businesses. Our intent is to give you a general understanding of when the various taxes will apply to you and what they will mean to your business.
- Privilege tax is imposed on Alabama businesses based on their taxable income and net worth.
- Income tax on business income computed at 6.5 percent based upon corporate taxable net income is required in Alabama.
- Personal income tax, based on a person's income, is 2 percent to 5 percent of taxable income in Alabama.
