Alabama

The state of Alabama, like most states, imposes many different taxes on its residents. These taxes include individual and corporate income tax, sales and use tax, and various other taxes.

The general state sales and use tax rate for Alabama is 4%. There are also more than 200 different city and county sales taxes.

Individual income tax is reported on Form 40 and is due on April 15. If the due date falls on a weekend or holiday, taxpayers have until the next business day to mail the return. Income is taxed at rates ranging from 2% to 5%..

Form 20C is the Corporation Income Tax Return and Form 20S is the S Corporation Information/Tax Return. Both are due by the 15th day of the third month after the end of the taxable year. Form 65 is the Partnership/Limited Liability Company Return of Income, and is due by the 15th day of the fourth month after the close of the taxable year.

Revenue is also generated for the state by imposing other taxes such as the business privilege tax and corporate share tax, and real and personal property taxes.

For additional information on Alabama taxes or to download forms, visit the Department of Revenue website at www.ador.state.al.us.

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