HDR-Businessclimate

Cost of Doing Business

Cost of Business State Comparison

Below are some of the main costs for doing business in Coosa and Tallapoosa Counties and for Alabama in general. Some of the ways Alabama helps lower business costs is by allowing companies to deduct all of its federal income taxes apportioned to Alabama, not charging property taxes for inventory, and providing competitive tax incentives for new and expanding industries. For more information about business costs, contact the Lake Martin Area Economic Development Alliance at 256-215-4411.

StateRanking
Alabama 4
Georgia 2
Tennessee 7
Louisiana 6
Mississippi 9
Texas 1
North Carolina 5

Source: 2013 America's Top States for Business Study - Area Development

 

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
  • Based on ability to pay

Property Tax

  • State Rate: 6.5%
  • Local property tax rates vary
  • No property taxes for inventory. Some exemptions apply for raw materials inventory.

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 0.20% to 6.80%

Workers Compensation Insurance

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