Business-hdr

Business Costs

With a low cost of doing business, Alabama and Chambers County in particular, is a great place to relocate your business. The following is an overview of the main tax costs and other related costs for doing business in Alabama. For more detailed and specific costs and information, contact the Chambers County Development Authority at (334) 642-1412.

Corporate Income Tax

  • Rate: 6.5%
  • Based on net taxable income of business done in Alabama
  • All of a company's federal income taxes apportioned to Alabama are deducted

Business Privilege Tax

  • Rates: Varies from $.25 to $1.75 for each $1,000 of net worth in Alabama
  • Minimum tax is $100
  • Based on ability to pay

Property Tax

  • State Rate: 6.5 mills (.0065%)
  • Based on 20% of fair market value
  • No property taxes for inventory. Some exemptions apply for raw materials inventory.
  • Local property tax rates vary

Real and Personal Property Tax

  • Based on 20% of fair market value
  • Includes land, buildings, machinery, equipment, furniture, and other items

Sales and Use Tax

  • State Rate: 4.00%
  • Local sales & use taxes vary

Unemployment Insurance

  • New Employer Tax Rate: 2.70%
  • Taxable Wage Base: $8,000
  • Unemployment Insurance Tax Rate: Ranges from 0.44% to 6.04%

Workers Compensation Insurance

  • Minimum Weekly Workers Compensation: $136
  • Maximum Weekly Workers Compensation: $493

Source for this page: Alabama Department of Revenue

(334) 642-1412
2102 South Broad Avenue | P.O. Box 269 | Lanett, AL 36863