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Form 8879 Birmingham Alabama: What You Should Know

Change of taxpayer Taxes and filing For the 2025 tax year, the following are the tax rates of the Alabama resident, nonresident, and nonresidents. In Alabama an individual's taxable income is computed as follows: 7,500.00 (the tax rate) + 0.00 (the nonresident credit) — 2,750.00 = 4,000.00 For business entities this is multiplied by the number of employees (0.25 times the number of people). 4,000.00 0.25 45,000 (the number of people in a business), or 1,500.00 If you work for a business entity and pay taxes by the Alabama resident rate (and that tax falls on to the business), you may be entitled to a business credit. See above for more information. Alcohol, diesel, and lodging income tax. The State of Alabama requires that all business entities within the state pay a 15 percent tax on gross receipts (before taxes); this rate must be paid regardless of whether the total sales or use of services, etc. is below 2,500.00. For more information please see Alabama Business Tax Guide (BHG) at the following link.

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