Filing Frequency: Annual

By state law, Alabama corporations, LLCs, LPs, and LLPs must file a Business Privilege Tax Return with the Alabama Department of Revenue each year.

State Fees:

Businesses that are calculated to owe $100 or less in business privilege tax aren’t required to file the BPT Return or pay the tax.

The tax rate for the Alabama Business Privilege Tax is based on how much revenue your business brings to the state of Alabama.

So, your rate will rise and fall depending on how much money your business earns each year.

The Alabama Department of Revenue reduced the minimum business privilege tax from $100 to $50 for the 2023 tax year and eliminated the minimum tax completely starting in the 2024 tax year.

Taxpayers whose business privilege tax is calculated as $100 or less are exempt from paying this tax and don’t have to file a Business Privilege Tax Return.

Total Revenue - Tax Rate per $1000 of taxable Alabama income

$0 to $1 - $0.25

$1 to $200,000 - $1

$200,000 to $500,000 - $1.25

$500,000 to $2,500,000 - $1.50

$2,500,000 and more - $1.75

Due Date to File: