TAX & LICENSE / STATE TAX STRUCTURE
State Income Tax
Alabama imposes a state income tax on a graduated scale that varies with your income level and your filing status. This tax is also adjusted for applicable credits and exemptions. The tax rates in Alabama range from 2 percent to 5 percent, but the income levels they are applied to vary with your filing status. For complete information on Alabama income tax, contact the Alabama Department of Revenue or consult one of the regional Tax Service Centers:
Alabama Department of Revenue
Individual and Corporate Tax Division
334-242-1170
https://revenue.alabama.gov
Refund Hotline
334-353-2540
https://revenue.alabama.gov
Taxpayer Advocate
334-242-1055
https://revenue.alabama.gov
Regional Tax Service Centers
Auburn-Opelika Service Center
3300 Skyway Drive
Auburn 334-887-9549
https://revenue.alabama.gov
Birmingham Service Center
2024 Third Avenue North
Birmingham 205-323-6387
https://revenue.alabama.gov
Huntsville Service Center
994 Explorer Boulevard
Huntsville 256-922-1082
https://revenue.alabama.gov
Mobile Service Center
955 Downtowner Boulevard
Mobile 251-344-4737
https://revenue.alabama.gov
Shoals Service Center
201 South Court Street
Florence 256-383-4631
https://revenue.alabama.gov
Tuscaloosa Service Center
518 19th Avenue
Tuscaloosa 205-759-2571
https://revenue.alabama.gov
Sales & Use Taxes
Sales tax is a tax imposed on the retail sale of tangible personal property sold in Alabama by businesses located in Alabama. The general tax is 4 percent and collected by the seller from each customer. All sales of tangible personal property are retail sales except those defined as wholesale sales. In addition to the state sales tax, more than 200 cities and counties levy sales taxes. The state offers a Sales Tax Holiday just before school opens at the end of each summer that allows consumers to purchase school supplies including clothing and computers free of state sales or use tax. Local taxes may still apply. Use taxes are paid directly by consumers to the state government on items that have been purchased outside of Alabama such as catalog or Internet sales that have not been taxed. These taxes are due monthly to include the recent month’s purchases. However, a taxpayer may file and pay state use tax quarterly when the total state use tax averaged less than $200 per month during the preceding calendar year. For more information, contact:
Alabama Department of Revenue
Sales, Use & Business Tax
General Information
334-242-1490
Paperless Filing
866-576-6531
www.ador.state.al.us/salestax/index.html
Property Taxes
Property or ad valorem taxes are imposed on real and/or business personal property. Real property includes land and improvements, while business property refers to furniture, fixtures, tools, and equipment used in the operation of a business including airplanes. Many new property owners rely on the title company, real estate agent, or other representative to properly record their deed and assess their property. Immediately after recording your deed, file an assessment return with the Assessing Division.
The Homestead Exemption may apply to property owners who own a single-family residence and occupy it on the first day of the tax year for which they are applying. In Alabama, the property tax payment is determined by multiplying the appropriate mileage rate by assessed value minus the proper exemptions. Additional homestead exemptions are available for residents who are over 65 years of age and those with specific circumstances in that age group. For detailed information about rates and exemptions, contact the appropriate county office.
County Tax Assessors
Baldwin County
251-937-0245
www.co.baldwin.al.us
Bibb County
205-926-3105
www.bibbal.com
Blount County
Oneonta 205-625-6868
Hayden 205-590-2851
www.blountrevenue.com
Chilton County
205-755-0155
https://chiltoncounty.org
Cullman County
256-775-4776
http://cullmanrevenuecommissioner.com
Jefferson County
205-325-5505
www.jccal.org
Lauderdale County
256-760-5785
http://lauderdalecountyonline.com/New_Website/Revenue_Commissioner/index.html
Lee County
334-737-3655
800-239-4469
www.leeco.us
Madison County
256-532-3350
http://madisoncountyal.gov
Mobile County
251-574-8530
www.mobilecopropertytax.com
Saint Clair County
205-338-9461
www.stclairco.com
Shelby County
205-669-3903
www.shelbyal.com
Tuscaloosa County
205-349-3870
www.tuscco.com
Walker County
205-384-7267
http://www.walkercountyrevenue.com/Default.aspx
Real Estate Transfer Tax
The state of Alabama does not levy real estate transfer tax.
Estate & Inheritance Taxes
Alabama does not impose an inheritance tax. The state’s estate tax is tied directly to the federal estate tax and is calculated by using the tax computation on the federal estate tax return.
Federal Income Taxes
Internal Revenue Service
General Information
800-829-1040
www.irs.gov
Forms Line
800-829-3676
Tele-tax
800-829-4477
