States / Alabama

Alabama

Last checked Oct 22, 2026

Alabama practitioners use about four state logins for tax and payroll work, run by three agencies. The Department of Revenue's My Alabama Taxes (MAT) is the web portal for RITS, the FAST Enterprises GenTax system the Department contracted for in July 2005 at a $22 million price tag over five years; the first taxes moved onto it in July 2006. No RITS contract total was found, but Open Alabama's checkbook shows the Department paid FAST $129.8 million from FY 2017 to October 2026, a figure that also covers a separate $38.9 million FAST contract (2022) to modernize the motor vehicle title and registration systems. Unemployment tax and benefits moved off a mainframe on January 6, 2020 onto Data Station, which Netacent of Boise owns; the Department of Labor (since merged into the Department of Workforce) hired Netacent through a 2017 RFP for $2.1 million and in January 2023 added a $20 million sole-source contract, while the checkbook also shows $35.8 million paid to Solid State Operations in FY 2020 to FY 2022, a company Hawaii credited with Alabama's system before Hawaii cancelled its own Solid State contract. Business filings go through the Secretary of State's portal run by Alabama Interactive (NIC), and new hire reports go to a Workforce portal relaunched in December 2025. Alabama has no state paid family and medical leave program.

Who administers what

Every fact links to its source and carries a label: Public record Vendor claim Press / secondary

What the state has spent

Contract totals are the approved ceilings or current contract values the sources state, not money paid, and they are added up only where a plain contract figure exists. The yearly average spreads each system's payments over the years they cover (marked p), or, where no payment data was found, its contract total over the contract term (marked c); systems with neither are left out; it is an estimate of the yearly cost, not a reported figure. Payments to date and project budgets or estimates are added up in their own tiles, from the figures shown in the table; the three kinds of figure overlap and are never added together. Follow each system below for its sources.

Portals practitioners use

Leadership and contacts

Checked Oct 30, 2026. People change roles often; confirm on the agency's site before relying on a name.

Chain of command

• Voters
  • Governor: Kay Ivey
    • Commissioner of Revenue: Mary Martin Mitchell Alabama Department of Revenue
    • Secretary of the Department of Workforce: Greg Reed Alabama Department of Workforce
  • Secretary of State: Wes Allen Alabama Secretary of State

Employer account numbers

Checked Oct 29, 2026.

Two state agencies issue Alabama employer numbers: the Department of Revenue (the withholding tax account number, in My Alabama Taxes) and the Department of Workforce, formerly the Department of Labor (the unemployment compensation account number, in eGov). The 0.06 percent Employment Security Enhancement Assessment (ESA) is part of the UC tax rate on the same account. Alabama has no state paid family and medical leave or disability insurance program with an employer account. The Department of Revenue's registration help sheet tells employers to contact city and county officials to determine whether any local occupational taxes apply; those are not state accounts.

Layout: 9 is a digit, A is a letter, other characters are shown as the agency writes them. No real account numbers appear on this site.

Employer tax ID numbers for every state researched

Unemployment insurance tax

Checked Nov 3, 2026. Alabama Department of Workforce (ADOW), Unemployment Compensation tax

Alabama taxes the first $8,000 of each employee's wages, and a newly liable employer pays 2.70%. For 2026 the Department applied rate schedule A, the lowest of four, with shared costs at 0.00%, which puts the table rates at 0.20% to 5.40%; rates include the 0.06% Employment Security Enhancement Assessment. 2026 rate notices were posted online on December 16, 2025 and are no longer mailed.

Taxable wage base

2026: $8,000
Not indexed on the pages read: the Department states a flat $8,000 per employee per calendar year. source Public record

New employer rate

2026: 2.7% Newly liable employers pay 2.70% on the first $8,000 until experience rated; a new company at the 2.70% initial rate cannot download a rate notice until its individual rate is determined. A successor to a liable employer takes the predecessor's experience. source Public record

Rate range

2026: 0.2% to 5.4%, Schedule A (of schedules A to D), shared cost 0.00% Schedule and shared cost are from the Department's 2025 annual report; the minimum and maximum are the Schedule A column of the Department's tax rate table (benefit ratio 0.00 to 0.39 gives 0.20%; 7.20 or over gives 5.40%). Table rates include the 0.06% ESA except 5.40%, per the Department's FAQ, so the total at the top line may differ; not confirmed. Across all four schedules the FAQ gives 0.20% to 6.80% plus any shared cost. Rates use benefit charges and taxable payroll for the three most recent fiscal years ending June 30. source Public record

Other assessments

• Employment Security Enhancement Assessment (ESA): 0.06%, included in the published rates and shown as Item 7 on the Tax Rate Notice (Form UC-216); combined with the UC rate for the quarterly payment. Deposited to the Employment Security Enhancement Fund in the State Treasury and used to help unemployed claimants find work. (2026) source Public record
• Shared cost: 0.00% for 2026; added to the computed rate for costs that cannot be assigned to a specific employer (2026) source Public record

Rate notices

Posted online in eGov, not mailed (except to IVR telephone filers); the 2026 notices were available on December 16, 2025, and the Department emails employers to retrieve them. source Public record

Filing

Quarterly Contribution and Wage Report (corrections on Form UC-10-C)
Due: Last day of the month after the quarter: April 30, July 31, October 31, January 31.
Electronic filing: Required: quarterly reports must be filed online through eGov; computer-generated paper reports are not accepted.
eGov (Alabama Department of Workforce) source Public record

FUTA credit reduction

None. Not listed by the U.S. Department of Labor as having a Title XII advance balance on January 1, 2026, and not a credit reduction state in any year from 2010 to 2025. source Public record

The Department's full tax rate table is served from its older labor.alabama.gov site. The schedule in effect each year depends on the trust fund balance against its desired level (1989 amendment to the UC law, Code of Alabama 25-4-54).

Not confirmed: 2027 schedule, shared cost and rate notices: not yet published when checked (2026 notices came out December 16, 2025). Whether an employer at the 5.40% table rate also owes the 0.06% ESA on top: the FAQ says all table rates include ESA except 5.40%; not confirmed. Rate notice protest deadline and voluntary contributions: not found on the Department's pages read; Code of Alabama 25-4-54 (on the legislature's ALISON site, which needs a browser) not read. Whether the ESA counts toward the FUTA credit: not stated in the sources read.

Unemployment insurance tax in every state

Income tax withholding

Checked Nov 3, 2026

Employees give the employer Form A-4; the federal W-4 is not an acceptable substitute, and with no A-4 the employer withholds using zero exemptions. Employers may withhold from bonuses and supplemental wages at 5%. Alabama has no broad reciprocity, but under Act 2025-334 a nonresident working in Alabama 30 or fewer days in a calendar year is not withheld on when the home state qualifies; from day 31, all of that year's Alabama wages are subject to withholding. Many cities and counties levy occupational taxes that they administer themselves.

Withholding certificate

Form A-4, Employee's Withholding Tax Exemption Certificate (Rev. 4/2025); Form A4-MS, Nonresident Military Spouse Withholding Tax Exemption Certificate (Rev. 4/25). Federal Form W-4: not accepted. The employer must obtain a completed A-4 from each employee; a new certificate is filed when the number of exemptions or dependents changes. Employers keep certificates at least three years. With no certificate on file: Withhold using zero exemptions. Form A4-MS for a nonresident employee whose spouse is an active duty servicemember present in Alabama under military orders (Military Spouses Residency Relief Act), given to the employer with the required documentation. If an employee claims more exemptions or dependents than the employer believes are due, the employer mails a copy of the A-4 and a letter to the Withholding Tax Section. source Public record

Supplemental wages

2026: 5%. Employers may withhold state income tax from bonuses and supplemental wage payments at the rate of 5%. source Public record

Withholding tables

Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026) (2026). Tables for weekly, bi-weekly, semi-monthly, monthly and quarterly payroll periods, and a formula for computer payrolls; the formula must be used when dependents or salary exceed the tables. Rates 2% to 5%.

Reciprocity

No reciprocal agreements. The Department says Alabama does not have broad reciprocity agreements with neighboring states. The 30-day safe harbor turns on the home state having a similar exclusion or no income tax (as of October 1, 2026: Alaska, Florida, Georgia, Illinois, Indiana, Louisiana, Montana, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, West Virginia, Wyoming). source Public record

Nonresidents working here

No Alabama withholding for a nonresident performing duties in Alabama 30 or fewer days in a calendar year who works in more than one state and whose home state has a similar exclusion, has no income tax, or whose income is federally exempt; professional athletes, entertainers and public figures are excluded. At 31 or more days, all Alabama income for the calendar year is subject to Alabama withholding. Convenience of the employer: no: the Department says wages of a nonresident who performs all services outside Alabama, including remote work from another state, are not Alabama-source wages and need no Alabama withholding. Act 2025-334. source Public record

Deposits and returns

• monthly: More than $1,000 withheld in the first or second month of a quarter (employers withholding less may file monthly voluntarily). Due Between the 1st and the 15th of the following month, on Form A-6
• quarterly: All registered employers. Due Last day of the month following the quarter, on Form A-1 (filed even if no tax was withheld)

Form A-1 quarterly return, due by the last day of the month following the quarter; Form A-6 monthly return for months over $1,000, due by the 15th. Annual reconciliation Form A-3 with W-2s by January 31: see the information returns page. A single withholding tax payment of $750 or more requires electronic filing of both the payment and the return. My Alabama Taxes (MAT) source Public record

Annual reconciliation

A-3, due On or before the last day of January (January 31).. With the W-2 and 1099 filing rules

Local taxes employers withhold

• Local occupational (license) taxes on wages: Levied and administered by individual cities and counties, not the Department of Revenue; employers contact the city or county administering the tax. source Public record

Recent and coming changes

• Act 2025-334 30-day safe harbor for nonresident workers in effect; the Department lists qualifying home states as of October 1, 2026. source Public record
• Jan 1, 2026 Act 2026-604 overtime premium deduction for calendar years 2026 to 2028 (lesser of the premium or $1,000), taken on the return; the premium is reported in W-2 box 12 code TT and does not change Alabama wages or withholding. source Public record
• Department notice on withholding for nonresident employees (posted August 25, 2026): Alabama withholding applies only to wages for services physically performed in Alabama, and the Department will not follow the Tax Tribunal's Bollinger ruling to the extent inconsistent. source Public record

An Alabama employer withholds from Alabama residents working elsewhere unless it withholds for the state where the employee works. Federal special rules apply to air carrier, interstate rail and motor carrier, and water carrier employees. Annual reconciliation (Form A-3) and W-2 and 1099 filing are on the information returns page (data/inforeturns/alabama.json).

Not confirmed: The effective date of Act 2025-334 is not stated on the Department pages read. No statewide lookup of local occupational tax rates was found on the Department site; the booklet sends employers to each city or county. No annual filing frequency is stated in the booklet.

Withholding rules in every state

Credits for other states' taxes and part-year residents

Checked Nov 3, 2026

Alabama gives legal residents filing Form 40 a credit for income tax paid to another state or U.S. territory on income also taxed by Alabama, figured on Schedule CR and claimed on Schedule OC, Part A; foreign taxes go through a separate, narrower Schedule OC credit. A part-year resident files Form 40 reporting only income earned while a resident and, for Alabama-source income earned while a nonresident, a separate Form 40NR, so income from the nonresident period is kept out by exclusion (separate returns). Alabama gives nonresidents no reverse credit and is a Compact member of the Multistate Tax Commission.

Residents: credit for tax paid to other states

Schedule CR, Credit For Taxes Paid To Other States (2025), carried to Schedule OC, Part A, Credit for Taxes Paid to Other States (Form 40 Only). Line: Schedule CR, sum of Column F to Schedule OC, Part A, line A5; Schedule OC line A6 (credit allowable) to Section C, Part A, Column 3; Form 40, line 18 (net tax due, with the Schedule OC box checked). Limit: Per state, the smaller of the tax due the other state using Alabama tax rates (Column D) or the tax due the other state as shown on its return or Form W-2G (Column E). On Schedule OC, the credit allowable is the smaller of that total (A5) or the current Alabama tax liability multiplied by the other states' percentage of Alabama AGI (A4). The booklet states it as the lesser of the tax actually due to the other state or territory or the tax on the same income at Alabama rates. Covers: Income tax of another state or territory of the United States on income from sources outside Alabama that is taxed by Alabama and the other state in the same tax year. Foreign taxes: Not on Schedule CR. Schedule OC, Section B, Part I, Credit for Taxes paid to a Foreign Country (Form 40 only), is allowed only to resident owners of Subchapter K entities, Alabama S corporations and resident beneficiaries of an estate or trust, on their share of the entity's foreign income tax; it does not apply to wages or other income earned in a foreign country, and it is the lesser of 50% of the share of foreign tax or the Alabama tax on that share of income (rule 810-3-21-.03). Attach: Schedule CR and a copy of the other state's return, or Forms W-2G if the taxing state does not allow a return to be filed for gambling winnings. No credit for residents who earned income in a state that does not have an income tax. No credit when the out-of-state income is totally offset by a corresponding deduction. If the other state allows credits instead of personal exemptions, the Department asks taxpayers to call (334) 242-1170 to convert the credit. Form 40 booklet (2025), Credit for Taxes Paid to Another State; Schedule OC instructions, Part A. source Public record

Part-year residents: income while a nonresident

Other method A part-year resident reports on Form 40 only income earned while a resident of Alabama, with itemized deductions prorated to expenses incurred while a resident and the federal tax liability deduction prorated by the ratio of Alabama AGI to federal AGI; the full standard deduction and exemptions are allowed. If the taxpayer also had Alabama-source income while a nonresident, it goes on a separate Form 40NR with no exemptions. Income from other states earned while a nonresident is not reported to Alabama. Form 40 (part-year resident) and, for Alabama-source income while a nonresident, Form 40NR. Line: Form 40 income lines: enter only the income earned during the period of residence; Form 40 line 12 federal tax liability prorated. source Public record

Part-year residents: credit for the period of residence

Available. A part-year resident can claim the credit only if the returns filed with Alabama and the other state cover the same periods. Form 40 with Schedule CR and Schedule OC, Part A. source Public record

Nonresidents: reverse credit

No. The credit is available only to legal residents of Alabama filing Form 40 (Schedule OC, Part A is Form 40 only); nonresidents pay Alabama tax on Alabama-source income on Form 40NR. source Public record

Local income taxes

The booklet lists local, city or occupational tax among the taxes not to include as Alabama income tax withheld. No credit for local taxes is stated. source Public record

Multistate Tax Compact

Compact member. The Commission lists Alabama's enactment of the Multistate Tax Compact at Ala. Code 40-27-1; whether Alabama still follows the Compact's apportionment article was not checked. source Public record

Alabama's own electing pass-through entity tax gives owners a refundable credit on Schedule CP (Act 2021-423); that is not a credit for another state's tax. Reciprocity, withholding and the 30-day nonresident rule are on the withholding page.

Not confirmed: Whether Schedule CR covers another state's local income taxes, or another state's pass-through entity tax paid on a resident's share, is not stated in the booklet or the Schedule OC instructions. No change to the credit or part-year rules for 2026 was searched for in the 2026 session.

Multistate rules in every state

Business return deadlines and annual reports

Checked Nov 4, 2026

Corporations file Form 20C one month after the federal due date (May 15, 2026 for calendar 2025), but the tax is due by the original due date, the 15th day of the fourth month (April 15, 2026). S corporations file Form 20S and partnerships Form 65 by the 15th day of the third month (March 16, 2026). Alabama's annual report is part of the Business Privilege Tax return filed with the Department of Revenue (Form CPT for C corporations, Form PPT for S corporations, LLCs and other limited liability entities) on the federal return due date, and only when the tax is more than $100.

Corporate return

Corporate income tax. Form 20C, Corporation Income Tax Return (Form 20C-C for a consolidated return). Due: Returns for calendar and fiscal year 2025 are filed one month following the due date of the corresponding federal income return, including applicable extensions; the original due date, by which the tax must be paid, is the 15th day of the fourth month after the end of the tax year (the third month for a June 30 year end). For tax year 2025: May 15, 2026. Fiscal years: For a fiscal year ending June 30, the original due date is the 15th day of the third month following the end of the tax year, and the return is filed one month after the federal due date. source Public record

Corporate extension

Federal extension accepted. The federal extension, plus the one month after the federal extended due date allowed by Act 2022-53. Federal Form 7004 submitted with Form 20C; extension payments on Form BIT-V (electronically if $750 or more). The full tax is due by the original due date of the return (April 15, 2026 for calendar 2025) without the additional one month.

S corporations

Form 20S, Alabama S Corporation Income Tax Return. Due: By the 15th day of the third month after the end of the tax year. For tax year 2025: Mar 16, 2026. Any federal extension is recognized for Alabama; it does not extend the time to pay. source Public record

Partnerships

Form 65, Alabama Partnership/Limited Liability Company Return of Income. Due: On or before the 15th day of March following the close of the calendar year, or the 15th day of the third month following the close of a fiscal year; if the 15th falls on a Saturday or Sunday, the following Monday. For tax year 2025: Mar 16, 2026. A federal extension is recognized for Alabama. source Public record

Individuals

Form 40 (residents). For tax year 2025: Apr 15, 2026. Automatic extension to October 15, 2026 with no form; pay any tax due with Form 40V (Automatic Extension Payment) by the federal due date. source Public record

Other business returns with a fixed date

• Business Privilege Tax return and annual report (Form CPT or Form PPT): Same date as the corresponding federal income return: Form PPT 2 1/2 months after the taxable year begins (March 16, 2026 for the 2026 return of a calendar-year LLC or S corporation), Form CPT 3 1/2 months after (April 15, 2026 for a calendar-year C corporation). Automatic extension with the federal extension; no extension to pay. Every corporation, limited liability entity and disregarded entity doing business in Alabama or organized, qualified or registered there, whose tax is more than $100. source Public record
• Initial business privilege tax return (Form BPT-IN): Within 2 1/2 months after the entity incorporates, organizes, qualifies or starts doing business in Alabama; no extension. New entities. source Public record

Annual report

Filed with the Alabama Department of Revenue (the annual report is part of the Business Privilege Tax return) through My Alabama Taxes.

Alabama's annual report is filed with the Department of Revenue as part of the Business Privilege Tax return, not with the Secretary of State. The return for a taxable year is based on the determination period that just ended (for the 2026 return, generally the 2025 tax year). Since taxable years beginning after December 31, 2023, an entity whose tax is $100 or less files no return. 'Limited liability entity' is defined in Section 40-14A-1; limited partnerships and LLPs are listed here on the assumption they fall within it, which the pages read do not spell out.

Recent and coming changes

• Jan 1, 2024 Full exemption from business privilege tax of $100 or less, with no return required, for taxable years beginning after December 31, 2023 (Act 2022-252) source Public record

March 15, 2026 was a Sunday, so 2025 Forms 20S and 65 and the 2026 Form PPT for calendar-year filers were due Monday, March 16, 2026.

Not confirmed: Whether nonprofit corporations file any annual report with the Secretary of State (not read). Whether limited partnerships and LLPs are 'limited liability entities' that file Form PPT (Section 40-14A-1 not read). Any Secretary of State consequence (such as revocation) for not filing the Business Privilege Tax return (not read).

Deadlines and annual reports in every state

Electronic payment, penalties and interest

Checked Nov 4, 2026

Alabama requires every single business tax payment of $750 or more to be made electronically (Code of Ala. 41-1-20). A late return costs the greater of 10% of the tax or $50; late payment on an annual return such as income tax is 1% a month up to 25%, and on monthly or quarterly returns such as sales and withholding tax it is 10% of the unpaid tax. Interest follows the federal underpayment rate under 26 U.S.C. 6621, set each quarter: 7% from October 1, 2026, after 6% for April to June 2026.

Interest on unpaid tax

The underpayment rate established by the Secretary of the Treasury under 26 U.S.C. 6621 (for taxpayers other than corporations, the federal short-term rate plus 3 percentage points), set each calendar quarter, as required by Code of Ala. 40-1-44. Code of Ala. 40-1-44; 26 U.S.C. 6621. source Public record

When tax must be paid electronically

• All taxes: Any single business tax payment of $750 or more (Section 41-1-20); includes business income tax, extension and withholding payments. Methods: My Alabama Taxes (MAT) e-payment, among other electronic options; payments under $750 may be mailed with Form BIT-V. An account with the Department registered in MAT. Penalty for paying another way: Not stated as a figure; the Form 20C instructions say substantial penalties will be assessed for noncompliance. source Public record

Penalties

Late filing

Covers: Income tax returns (individual and corporate) and sales tax returns, as the Department's booklets and FAQ state it. Greater of 10% of the tax required to be paid on the return or $50; does not apply to a return showing no tax due or a refund. Minimum: $50. Code of Ala. 40-2A-11. source Public record

Late payment

Covers: All taxes administered by the Department except motor vehicle registration and titling and most ad valorem taxes. Annual returns (income tax): 1% of the unpaid tax for each month or fraction, up to 25%. Monthly or quarterly returns (sales, use, rental, lodgings, withholding, estimate payments and others): 10% of the tax not paid by the due date. Tax not paid within 30 days of the first notice and demand: the same penalty again (1% a month for annual returns, 10% for monthly or quarterly returns). Maximum: 25% of the tax for annual returns. Code of Ala. 40-2A-11; Rule 810-14-1-.30. source Public record

Estimated tax, individuals

Charged as penalty. Figured on Form 2210AL as underpayment times days divided by 365 times 0.07 for 2025. Safe harbor: Required annual payment is the smaller of 90% of the current year's tax or the maximum based on the prior year's tax; no penalty if the tax after withholding is less than $500. Form: Form 2210AL (boxes A and B request a full or partial waiver). source Public record

Estimated tax, corporations

Charged as both. Interest at the 26 U.S.C. 6621 underpayment rate for the period of underpayment, plus the 10% penalty of Code of Ala. 40-2A-11 on estimated payments not paid by the quarterly due date. Safe harbor: Required annual payment is the smaller of the current year's tax or the tax shown on the prior year's return; large corporations must pay 100% of the current year tax. Form: Form 2220AL. source Public record

Penalty relief

Civil penalties are waived on a showing of reasonable cause, with the burden on the taxpayer (Rule 810-14-1-.33.01). Ask through My Alabama Taxes (open the tax account, then Ask a question, with a valid explanation) or submit Form 911AL with the penalty waiver box checked. Penalties are not assessed when the taxpayer acted in good faith, for example a cooperative audit with a history of timely filing and paying. How: Form 911AL (penalty waiver checkbox); Form 2210AL boxes A and B for the estimated tax penalty. source Public record

Other penalties

• Income tax estimate payments not paid when due. 10% of the tax not paid on or before the due date. source Public record
• Underpayment due to negligence or fraud (corporate income tax). Provided in Code of Ala. 40-2A-11; amounts not read. source Public record

Recent and coming changes

• Apr 1, 2026 Underpayment interest rate decreased to 6% source Public record
• Jul 1, 2026 Underpayment interest rate increased to 7% source Public record
• Oct 1, 2026 Underpayment interest rate remains 7% for October to December 2026 source Public record

The January to March 2026 rate is the IRS underpayment rate for that quarter (7%), which Alabama adopts; no Alabama notice for that quarter was found. The rate for January 1, 2027 onward follows the IRS rate for the first quarter of 2027, not announced as of 2026-11-04. Refund interest under 40-1-44 was not read, so refund is left null.

Not confirmed: The amount of the penalty for not paying electronically under 41-1-20 (the instructions say only that substantial penalties apply). Negligence, fraud, frivolous return and dishonored payment penalty amounts (Code of Ala. 40-2A-11 itself was not read; the legislature's code site is a script application). Interest rate on refunds, and whether interest compounds. Time limit for penalty waiver requests. Interest rate for January 1, 2027 onward.

Electronic payment, penalties and interest in every state

Disaster relief rules

Checked Nov 4, 2026

Alabama does not follow IRS postponements automatically; the Department of Revenue announces relief for each disaster, sometimes mirroring the IRS for all its taxes (2023 storms) and sometimes for one tax only (Hurricane Isaias, 2026: individual income tax returns due Oct. 15, 2026, extended to Feb. 4, 2027, under Code of Ala. 40-2-11(a)(13)). Relief for named counties has been automatic; other taxpayers ask by phone or use Form PWR to request a penalty waiver.

When the IRS postpones deadlines

Announces relief case by case Announced per disaster. 2023 storms: "The relief measures mirror IRS measures in the same declared disaster areas." Hurricane Isaias, Oct. 15, 2026: "No contact with ALDOR is required for these impacted taxpayers to receive the filing extension on their individual income tax return granted pursuant to § 40-2-11(a)(13), Code of Ala. 1975.". Counties named in each release. For the 2023 storms, the federally declared areas, with localities the IRS added later receiving the same relief automatically; for Hurricane Isaias, the 40 counties in the governor's state of emergency declaration (the release links the IRS list). Code of Ala. 1975, 40-2-11(a)(13), as cited in the Department's release of Oct. 15, 2026. source Public record

Taxes covered

Varies by event. 2023 storms: all taxes the Department administers, returns and payments. Hurricane Isaias: individual income tax returns due Oct. 15, 2026 (filing only); other filings by case-by-case request. Not covered: 2023: taxes and registration fees under the International Fuel Tax Agreement and the International Registration Plan. Isaias: payments for 2025 returns due April 15, 2026. source Public record

State-declared disasters

The Department has given relief for counties in the governor's state of emergency: in March 2018, two extra months to file for returns due March 20 to April 30 in the declared counties; in October 2026, case-by-case relief from late filing penalties under the governor's Hurricane Isaias declaration. source Public record

How to get relief

Automatic for taxpayers in the named counties ("No contact with ALDOR is required" for the Isaias extension). Others call the division for the tax: individual income 334-353-0602, corporate income 334-242-1200, pass-through entities 334-242-1033, sales and use 334-242-1490, business privilege 334-353-7923, withholding 334-353-7680. In 2018 paper filers wrote "Severe Weather Relief - 2018" in red ink on the return. Penalties: For the 2023 storms, taxpayers who filed and paid by the extended date were eligible for penalty and interest relief, and could request a penalty waiver on Form PWR. Taxpayers outside the designated areas may request a waiver of late-filing and late-payment penalties with documentation. source Public record

Where relief is posted

Alabama Department of Revenue news release on Hurricane Isaias relief (no standing disaster page found)

The Isaias relief came in two steps: case-by-case penalty relief announced Oct. 13, 2026, then the automatic individual income tax extension on Oct. 15, 2026.

Not confirmed: The text of Code of Ala. 40-2-11(a)(13) was not read: the Legislature's code site (alison.legislature.state.al.us) loads the text by script. No Alabama casualty loss, sales tax or property tax disaster rule was looked for.

Current disaster relief and every state's rules

Federal tax picture

From the IRS's own statistics: the Data Book for fiscal 2025 and Statistics of Income for tax year 2023. Every state

Collected by type: Individual income tax withheld and FICA tax $27.3B; Individual income tax payments and SECA tax $9.3B; Business income taxes $1.9B; Estate and trust income tax $510M; Excise taxes $289M; Estate tax $138M; Unemployment insurance tax $75M; Gift tax $32M; Railroad retirement tax $4.6M. source Public record

Filers moving in and out, 2022 to 2023

55,369 returns (102,902 people) with $3.7B of income moved in from other states; 49,167 returns (86,565 people) with $3.1B moved out, a net gain of $0.5B in income. source Public record

Minimum wage

Checked Nov 3, 2026. U.S. Department of Labor, Wage and Hour Division (the Alabama Department of Workforce says Alabama has no state wage and hour laws and refers employers to it)

Alabama has no state minimum wage law, so the federal $7.25 an hour applies to employers covered by the Fair Labor Standards Act, in 2026 and 2027. The federal tipped cash wage of $2.13 applies. The Alabama Uniform Minimum Wage and Right-to-Work Act (2016) bars counties and cities from requiring a minimum wage.

Rate

$7.25 from Jul 24, 2009 Federal minimum wage; no state minimum wage law.
$7.25 from Jul 24, 2009 Federal minimum wage; no change enacted.
The federal $7.25 applies to employers covered by the Fair Labor Standards Act. source Public record

How it is set

No state law source Public record

Tipped employees

2026: cash wage $2.13, tip credit $5.12 Federal FLSA amounts.
2027: cash wage $2.13, tip credit $5.12 Federal FLSA amounts; no change scheduled. source Public record

Local minimum wages

Not allowed: state law preempts them source Public record

Poster

No state minimum wage poster; the federal FLSA minimum wage poster applies

HB 174 (2016 Regular Session, enrolled), the Alabama Uniform Minimum Wage and Right-to-Work Act, bars a county, municipality or other political subdivision from requiring an employer to provide any employment benefit, including a wage, not required by state or federal law, and voids inconsistent local rules. SB 171, introduced January 15, 2026, would have set a $10.00 state minimum wage beginning January 1, 2027; it is a bill as introduced, not law.

Not confirmed: The final status of SB 171 (2026 Regular Session) was not checked; the Legislature's bill status site is a script-driven app that was not used. Nothing found shows it was enacted. The Code of Alabama sections where the 2016 act is codified were not read. The poster line rests on the Department's statement that employers follow federal rules; no Alabama page naming a required poster was saved.

Minimum wage in every state

Paid family and medical leave

Checked Nov 3, 2026. Private insurance option only

Alabama has no state paid family and medical leave or temporary disability insurance program funded by payroll contributions, so there is no contribution rate or wage base for 2026 or 2027. HB141 of the 2023 Regular Session, the Paid Family Leave Income Replacement Benefits Act (Code of Alabama Section 27-19-150 and following), lets disability insurers offer paid family leave benefits through employer-sponsored group policies or voluntarily purchased employee policies; it is not a state program.

Recent and coming changes

• HB141 (2023 Regular Session) added Article 4 to Chapter 19 of Title 27, Code of Alabama 1975, the Paid Family Leave Income Replacement Benefits Act, authorizing disability insurers to offer paid family leave benefits through employer-sponsored group insurance or voluntarily purchased employee policies. The act takes effect on the first day of the third month after its approval by the Governor; the approval date is not on the enrolled bill. Passed the Senate April 27, 2023. source Public record

Voluntary insurance only: the 2023 act lets disability insurers add paid family leave benefits to fully insured policies, as a separate policy or as a rider to a disability insurance policy. No payroll contribution, state fund or employer report. The site's Alabama tax ID page already records that Alabama has no state paid leave or disability insurance employer account.

Not confirmed: The Governor's approval date, the act number and the resulting effective date of HB141 (2023) were not found on a primary source; the enrolled bill shows passage in the House on April 11, 2023 and the Senate on April 27, 2023, and says it takes effect on the first day of the third month after approval. Secondary sources say August 1, 2023; not used. No Alabama agency page found that says in so many words that Alabama has no state paid family and medical leave or disability insurance payroll contribution.

Paid leave in every state

Sick leave and time off

Checked Nov 5, 2026. No paid sick leave law

Alabama does not require private employers to give paid sick leave or paid leave for any reason, and state law (Ala. Code 11-80-16 and the 2016 Alabama Uniform Minimum Wage and Right-to-Work Act) bars counties and cities from requiring paid or unpaid leave. There is no state family and medical leave law; Alabama relies on the federal FMLA. Alabama has no state wage payment law on vacation, so no rule on paying out unused vacation at separation was found.

Paid sick leave

No state law requires private employers to give paid sick leave.

Local laws: A county, municipality or other political subdivision may not enact or administer an ordinance, policy, rule or other mandate requiring an employer to provide vacation or other leave, paid or unpaid, that state or federal law does not require, or to pay for leave that state or federal law does not require to be paid; inconsistent local mandates are void. The rule does not cover a local government's own employees. (Ala. Code 11-80-16; HB 174 of the 2016 Regular Session (Alabama Uniform Minimum Wage and Right-to-Work Act), Section 2(b) and (c)) source Public record

Family and medical leave

No state family and medical leave law for private employers; Alabama relies on the federal FMLA. The Alabama Department of Workforce says Alabama has no state wage and hour laws and lists family and medical leave among the topics handled by the U.S. Wage and Hour Division.

Vacation and PTO at the end of employment

Not addressed The Alabama Department of Workforce says Alabama has no state laws governing wage and hour issues and refers employers to the U.S. Wage and Hour Division. No Alabama statute or agency guidance on paying out earned, unused vacation at separation or on use it or lose it policies was found, so the employer's policy or agreement governs in practice. source Public record

Other leave the law requires

What was checked: The Code of Alabama on ALISON is a script app that curl cannot read; section text was taken from the Firecrawl Government Index of the ALISON pages and saved as text. Not listed as leave: Ala. Code 15-23-81 says a crime victim shall respond to a subpoena or take part in preparing a criminal proceeding without loss of employment or threat of it, which protects the job but does not set a leave or pay rule. No domestic violence, school activity, bereavement, donation or pregnancy leave law for private employers was found. No state law requires private employers to give holidays off or premium pay. HB 141 of 2023 (paid family leave benefits as a private insurance product) is on the site's paid leave page.

Not confirmed: Each Code of Alabama section was read only through the Government Index text of the ALISON page, not the page itself (https://alison.legislature.state.al.us/code-of-alabama). Needs a browser to confirm current text. Ala. Code 36-21-160(a) (definitions, which may limit which employers are covered) was not in the index text. The codified section of HB 174 (2016), Section 2 was not confirmed on a primary source (Justia shows it as Ala. Code 25-7-41). Whether any 2025 or 2026 Alabama act changed private employer leave rules was not checked beyond the Government Index searches.

Federal law adds unpaid FMLA leave at employers with 50 or more employees and paid sick leave for federal contractors. Sick leave and time off in every state

Sales and use tax

Checked Nov 3, 2026

Alabama's general state sales tax rate is 4 percent (food and groceries 2 percent from September 1, 2025). Cities and counties add their own sales taxes; the Department of Revenue administers over 200 of them but not all, so a business may have to register with some localities directly. Remote sellers with Alabama retail sales over $250,000 a year must collect, and can do so through the Simplified Sellers Use Tax program, a flat 8 percent that replaces all state and local sales and use tax on the sale.

State rate

4%
Food and groceries 2 percent effective September 1, 2025 (3 percent from September 1, 2023 to August 31, 2025); automotive 2 percent; farm machinery 1.5 percent. source Public record

Local taxes

Yes, some collected locally. The Department administers over 200 city and county sales taxes but not all of them, and advises contacting every city and county where you do business to see whether to register with it. ONE SPOT in My Alabama Taxes is a single point of filing for all state-administered local taxes and for non-state-administered local sales, use and rental taxes; non-state-administered taxes may have a different discount. Sellers in the Simplified Sellers Use Tax program collect a flat 8 percent wherever the item ships in Alabama, and the local share is distributed to cities and counties by population. Rate lookup source Public record

Remote sellers

$250,000; counts retail: only retail sales made directly by the seller; excludes wholesale sales for resale supported by an Alabama sales tax license or resale certificate and sales through an SSUT-participating marketplace that collects for its sellers sales; since Oct 1, 2018. The Department's 2018 notice told remote sellers over the threshold to register for SSUT and begin collecting no later than October 1, 2018; a deadline after crossing the threshold later is not stated in the sources read. The Department calls $250,000 the rule's small seller exception and describes it as annual Alabama sales; the rule text, which sets the measuring period, was not read. Rule 810-6-2-.90.03 took effect in January 2016 and has been enforced for sales on or after October 1, 2018. Simplified Sellers Use Tax (Act 2015-448): an eligible seller (selling into Alabama from outside the state, with no physical presence) applies and must be accepted before collecting a flat 8 percent on all sales into Alabama, which relieves the seller and buyer of any other state and local sales or use tax on the sale; buyers in lower-rate areas can request a refund of the difference, once in any 12-month period. Since July 1, 2017 (Act 2017-82) a participant may stay in the program unless it establishes nexus through a storefront or affiliate. source Public record

Marketplace facilitators

Must collect (Marketplace facilitators with $250,000 or more in retail sales in Alabama through the marketplace must register for SSUT and collect the flat 8 percent on all marketplace sales, or report the sales to the Department and notify customers under 40-23-199.2(m).), since Jan 1, 2019 source Public record

Streamlined Sales Tax

Not a member source Public record

Registration

Sales tax license (in-state sellers); Simplified Sellers Use Tax account (eligible remote sellers) Register Apply in My Alabama Taxes with Obtain a new tax account. Remote sellers apply for an SSUT account; the Department does not issue sales tax licenses (resale certificates) to remote businesses with no Alabama location. Some non-state-administered localities require their own registration. source Public record

Filing

• monthly: default
• quarterly: on request, tax liability less than $2,400 for the preceding calendar year
• semiannual: on request, liability less than $1,200 for the preceding calendar year, or sales in no more than two 30-consecutive-day periods
• annual: on request, liability less than $600 for the preceding calendar year, or sales in no more than one 30-consecutive-day period

Due: The 20th day of the month after the month, quarter, semiannual period or year (annual returns January 20). Requests to change filing status must be made before February 20 for that calendar year. SSUT returns are filed and paid electronically by the 20th of each month.
Electronic filing: Required: the Department says business taxpayers must file returns electronically in My Alabama Taxes (Rule 810-1-6-.12).
Vendor discount: Sales tax: if timely paid, 5 percent of the first $100 of tax and 2 percent of tax over $100, not more than $400 a month. SSUT: 2 percent of tax timely collected and remitted, applying to the first $400,000 and not more than $8,000 a month.
My Alabama Taxes (MAT) and ONE SPOT source Public record

Certificates

Resale: Sales for resale are made to licensed retail merchants, jobbers, dealers or other wholesalers; Alabama-issued sales tax licenses serve as resale certificates. For remote resellers drop-shipping into Alabama, the Department says the vendor should accept the reseller's home-state resale certificate.
Exemptions: Organizations exempted by statute apply for a certificate of exemption (Form ST:EX-A1-SE, per the site's startup page); the sources read here did not cover it. source Public record

Recent and coming changes

• Sep 1, 2025 State sales tax on food and groceries reduced to 2 percent (from 3 percent). source Public record

The SSUT discount figures appear twice on the SSUT page: a 2 percent discount on the first $400,000 of tax, not more than $8,000 a month (as of January 1, 2019), and a general statement that participants may keep 2 percent of SSUT timely remitted.

Not confirmed: Statute and effective date of the 4 percent general rate (Code of Ala. 1975 40-23-2): not read. Text of Rule 810-6-2-.90.03, including the measuring period for the $250,000 threshold and the activities it lists: the Alabama Administrative Code site loads by script. Registration fee, if any, for a sales tax license. Whether Alabama accepts the MTC or Streamlined certificates generally (only drop-shipment guidance found). Whether the SSUT 8 percent rate or discount changed after 2019: not stated on the SSUT page. Highest combined rate: not published in the sources read.

Sales tax in every state

Credit card surcharges

Checked Nov 4, 2026. No state surcharge law

No Alabama statute that allows, limits or bars a business adding a surcharge for credit card payments was found, though the Code of Alabama could not be searched directly. Since September 1, 2026, under SB 221 of 2026, a credit card transaction fee added to a purchase paid by credit or debit card is excluded from the sales and use tax base; the Department of Revenue says this applies when the fee is shown separately on the receipt.

The rule

No state law on credit card surcharges was found.

Cash discounts

No state law found.

Sales tax on the surcharge

Depends Not taxable if separately stated: the Department of Revenue FAQ says that beginning September 1, 2026 a credit card transaction fee (also called a swipe fee, credit card surcharge, processing fee, service charge or convenience fee) is not subject to sales or use tax if it is separate and identifiable from other charges, but if the receipt shows one total that does not separate the fee, tax applies to the full amount. SB 221 (2026) says the fee is excluded from the amount on which sales and use tax is assessed and directs the Department to adopt rules. source Public record

Recent and coming changes

• Sep 1, 2026 SB 221 (2026) excludes any credit card transaction fee, defined as a fee assessed on purchases made by debit or credit card to offset interchange fees charged to the merchant, from the base for sales and use tax on that payment. The act's definition of credit card covers debit cards and general use prepaid cards. The Department of Revenue must adopt rules. in effect source Public record

What was checked: Read the enrolled SB 221 (passed the Senate March 19, 2026 and the House April 8, 2026) and the Department of Revenue FAQ on credit card transaction fees. A search of the Code of Alabama on ALISON in a browser ("impose a surcharge" and "surcharge credit card") found only sections letting state agencies, Class 1 municipalities and some counties accept card payments (for example 41-1-60 and 11-47-25), county purchasing card rules and the lender interest surcharge in 8-8-14; no section on a seller's card surcharge.

Not confirmed: SB 221's Act number and signing date were not confirmed; the Department of Revenue FAQ treating it as in effect from September 1, 2026 implies it became law. How the Department treated card fees before September 1, 2026 was not checked against a Department document. Any Department of Revenue rule adopted under SB 221 was not found.

Federal law and the card networks' own rules apply in every state. Surcharge rules in every state

Pass-through entity tax

Checked Nov 3, 2026. Electing Pass-Through Entity (EPT) tax

Any Alabama S corporation and any Subchapter K entity (partnerships and LLCs taxed as partnerships) can elect to pay Alabama income tax at the entity level at 5 percent of its apportioned Alabama taxable income, with no owner left out. For tax periods beginning on or after January 1, 2025, the election is made by checking the Electing PTE box on the timely filed Form 65 or Form 20S, including extensions, each year it is in effect, and the entity also files Form EPT. Owners get a refundable credit for their share of the tax and must file an Alabama return to claim it.

Law

Alabama Electing Pass-Through Entity Tax Act (Act 2021-1 and Act 2021-423); Ala. Admin. Code r. 810-3-36-.01. Act 2021-1 and Act 2021-423 (2021). First tax year 2021. source Public record

Who can elect

Any Alabama S corporation (as defined in § 40-18-160) and any Subchapter K entity (as defined in § 40-18-1), meaning partnerships and LLCs taxed as partnerships. Single member LLCs, estates, trusts, business trusts and disregarded entities are not pass-through entities for this purpose except as owners. No owner limits are stated; an entity with all resident owners can elect. The entity cannot exclude or exempt any owner's share, including a tax-exempt owner's, from the base. Each tier must make its own election, but the election is optional at the upper tier. The tax paid by a lower tier flows up as a credit: an electing upper tier lists it on Schedule CP-B and enters it on Form EPT; a non-electing upper tier reports it on Form PTE-C, where it flows to nonresident partners and the entity is refunded the resident partners' share (2022 Form EPT instructions). source Public record

Election

For tax periods beginning on or after January 1, 2025, check the Electing PTE box on the timely filed Form 65 or Form 20S, and file Form EPT with it. Before 2025 the election was Form PTE-E, filed through My Alabama Taxes. The entity, by a vote or written consent of the members of its governing body and of the owners or shareholders holding greater than 50 percent of the voting control. Deadline: Any time during the tax year or before the due date of the Form 65 or Form 20S, including extensions granted (for tax years before 2025, the 15th day of the third month after the close of the tax year). Made each year. Yes. For periods beginning on or after January 1, 2025, check the Revoking PTE box on the timely filed Form 65 or Form 20S, including extensions. The Electing PTE box must be checked each year the election is in effect. Under the rule as first adopted, an election stayed in effect until a revocation was filed on Form PTE-E, and it ends automatically if the entity stops qualifying as a pass-through entity. source Public record

Rate

2026: 5% Same as 2025. The rule ties the rate to the maximum individual rate in § 40-18-5.
2025: 5% The entity's Alabama taxable income: the total of lines 1 through 17 in the Alabama column of Schedule K (Form 65 or 20S), apportioned under Chapter 27 of Title 40, including guaranteed payments, with no net operating loss deduction and no deduction for the tax itself. All owners' shares are included. source Public record

Estimated payments

Required when the Alabama income tax liability exceeds $500, under the corporate estimated tax rules (§ 40-18-80.1): four installments of 25 percent of the required annual payment, generally the lesser of 100 percent of the current year's tax or 100 percent of the prior year's tax (the prior-year safe harbor applies to an entity transitioning to the election, computed as 5 percent of Schedule K lines 1 through 17). Late installments draw interest at the federal underpayment rate plus the 10 percent penalty of § 40-2A-11. Pay by check with Form PTE-V or electronically; single payments of $750 or more must be electronic. Estimates paid for a year the entity does not elect can be refunded on Form PTE-C. Calendar year: April 15, June 15, September 15 and December 15. Fiscal year: the 15th day of the fourth, sixth, ninth and twelfth months of the fiscal year. source Public record

Return

Form EPT, filed with Form 65 or Form 20S (credits on Schedule EPT-C). Due The 15th day of the third month after the close of the tax year (March 15 for calendar year filers). A federal extension is also an Alabama extension (submit Federal Form 7004 with Form 65 or 20S). It extends filing only; the tax is due on the original due date. source Public record

Owner credit

Owners report their share of the entity's income on their Alabama return and claim a credit equal to their pro rata or distributive share of the Alabama income tax the entity paid for the year. Yes. The election does not create a filing obligation, but a nonresident owner who wants the credit must file an Alabama return reporting the share of income. No composite return (Form PTE-C) is required for an electing entity. Credit for other states' PTET: Yes. Alabama residents can claim the credit for income taxes imposed by other states for pass-through entity taxes paid to other states, on Form 40, Schedule CR, with the other state's return and Schedule K-1 (or a pro forma return at the other state's rate where the state files no individual return or gives an exclusion). Any pass-through entity tax deducted on the entity's federal return must be added back. No list of states is given. source Public record

Recent and coming changes

• Jan 1, 2025 The election moved from Form PTE-E filed in My Alabama Taxes by the 15th day of the third month after year end to a checkbox on the timely filed Form 65 or Form 20S, including extensions, checked each year; revocation is a separate Revoking PTE box. source Public record
• The 2025 Rural Hospital Investment Program Tax Credit joined the 2017 Historic Rehabilitation and Railroad Modernization credits as credits that stay with the electing entity instead of passing through. source Public record

No end date or SALT cap condition appears in the Department sources read, and none mentions a change after the 2025 federal law (Public Law 119-21). Credits other than the Historic Rehabilitation, Railroad Modernization and 2025 Rural Hospital Investment Program credits pass through to owners (Schedule PC).

Not confirmed: The Code of Alabama section added by Act 2021-423 was not identified or read; the citation rests on the Department notice and its rule 810-3-36-.01. Whether the move to a checkbox on Form 65 or Form 20S for 2025 came from a statute change or from the Department alone is not stated; the rule 810-3-36-.01 read is the 2022 version that still describes Form PTE-E. Current-year Form EPT instructions (2025) were not found at a guessable address; the tiered-entity rules come from the 2022 instructions. Whether an owner's unused credit can be carried forward is not stated (it is refundable).

Pass-through entity tax in every state

Conformity to the 2025 federal tax law

Checked Nov 3, 2026. Business tax: corporate income tax

Alabama's corporate tax starts from federal taxable income, and its individual tax starts from Alabama's own adjusted gross income but is tied to many federal provisions on a rolling basis, so most of the 2025 federal law applies without a new act. The Department of Revenue's analysis says bonus depreciation, section 179, section 174A, the business interest change and the car loan interest deduction (as an Alabama itemized deduction) are tied to federal; the federal deductions for tips, overtime and seniors are not. For 2026 to 2028, Act 2026-604 instead lets workers deduct the premium part of overtime pay, up to $1,000.

Follows the Code

Rolling: follows the Code as it changes. Code of Ala. 1975 40-18-33 (corporations) and 40-18-15 (individual deductions), as cited in the Department's OBBBA analysis
The Department: Alabama conforms to certain federal provisions on a rolling basis, so it conforms to relevant provisions of the new federal law automatically. For individuals the tie is provision by provision; the individual tax is not directly tied to federal taxable income. source Public record

Starting point

Individuals: own computation
Corporations: federal taxable income source Public record

Response to Public Law 119-21

Partly adopted. No conformity act needed for the rolling provisions; Act 2026-604 adds a state overtime premium deduction. Years: 2025 and later for the rolling provisions; 2026 to 2028 for the overtime premium deduction
The Department calls its analysis preliminary and subject to revision. Separately, section 40-18-62 (the Department's page refers to Act 2025-400) lets taxpayers deduct research and experimental expenditures currently for costs incurred on or after January 1, 2024. source Public record

Provision by provision

Other differences

• Charitable deduction for non-itemizers (section 170(p)): not allowed; Alabama allows charitable contributions only as an itemized deduction on Schedule A. source Public record
• The higher federal standard deduction is not tied to federal. source Public record

Guidance from the state

• Oct 31, 2025 The One, Big, Beautiful Bill Act: Analysis and Tax Provisions, Executive Summary (updated November 10, 2025)
• Sep 11, 2025 Notice: Research and Experimental Expenditures
• Dec 19, 2025 One, Big, Beautiful Bill Act (OBBBA) guidance page (updated December 19, 2025)
• Overtime Premium Deduction (Act 2026-604)

Recent and coming changes

• Jan 1, 2026 Act 2026-604: Alabama deduction for the overtime premium, up to $1,000 per taxpayer, for the 2026 to 2028 calendar years. source Public record

The Department's analysis covers individuals, C corporations and financial institutions, not pass-through entities or trusts, and is labeled preliminary.

Not confirmed: The text and signing date of Act 2026-604 were not read (the Legislature's ALISON site is script-driven); terms are from the Department's page. Act 2025-400 and section 40-18-62 were not read directly.

Conformity in every state

Pay in job postings

Checked Nov 2, 2026. No state pay range law

Alabama has no state law requiring employers to put pay in job postings or to disclose pay to applicants or employees. The Clarke-Figures Equal Pay Act (Ala. Code 25-1-30), in effect since September 1, 2019, bars an employer from refusing to interview, hire, promote or employ an applicant, or retaliating against one, because the applicant does not provide wage history.

Salary history ban: No (Ala. Code 25-1-30(c)). Not a ban on asking: an employer may not refuse to interview, hire, promote or employ an applicant, or retaliate, because the applicant does not provide wage history. source Public record

What was checked: Checked the Code of Alabama on the Legislature's site (Section 25-1-30, Equal Pay and Employment Requirements) and the enrolled Act 2019-519 on the Secretary of State's legislative acts site. Section 25-1-30 also bars paying employees less than employees of another sex or race for equal work within the same establishment, with exceptions for seniority, merit, production systems and any factor other than sex or race. Nothing in it requires pay in postings or pay disclosure.

Not confirmed: The rest of Code of Alabama Title 25 was not searched section by section for any other posting or disclosure rule. Alabama Department of Workforce pages were not checked. Local ordinances: none found in a web search; no city or county code was read. 2026 Regular Session bills on pay transparency were not checked.

Pay transparency rules in every state

For tax professionals

Checked Nov 3, 2026. Alabama Department of Revenue

Alabama's power of attorney is Form 2848A, Power of Attorney and Declaration of Representative, which the Department calls very similar to the federal form; its audit pages accept a similar form such as the federal Form 2848. Paid preparers do not register with the state. A preparer who prepares 11 or more original individual returns with software in a calendar year must e-file all acceptable individual returns from then on, and a client who wants paper signs Form EOO, the Taxpayer E-file Opt Out Election Form.

Power of attorney

Form 2848A, Power of Attorney and Declaration of Representative (Rev. 9/18). Attorney, CPA, enrolled agent, officer, full-time employee, family member, enrolled actuary, unenrolled return preparer, registered tax return preparer, student attorney or CPA, or enrolled retirement plan agent, as on the federal Form 2848; each declares they are not under suspension or disbarment from IRS practice. The type of tax, tax form number and years or periods listed in line 3; representatives may receive confidential information and perform any act the taxpayer can, but may not receive refunds and, unless the boxes are checked, may not authorize disclosure to third parties, substitute or add representatives, or sign returns. A separate form is needed for each taxpayer, and spouses on a joint return each file a separate form. No expiration stated. Filing a new 2848A revokes earlier ones for the same tax matters and periods unless the box is checked and a copy of each one to keep is attached. form source Public record

Federal Form 2848

Accepted with conditions The audit process page accepts Form 2848A or a similar form such as the federal Form 2848 that designates the taxpayer, identifies the tax type or assessment and the representative, and states the effective date of representation source Public record

Information only

No separate information authorization form was found. Form 4506-A lets the taxpayer have return copies or account information mailed to a named third party. source Public record

Preparer registration

No program found

Preparer ID on returns

A preparer paid to prepare an Alabama return must complete the paid preparer information on the return; the preparer may not sign with the Practitioner PIN. PTIN: not mentioned. source Public record

E-file mandate for preparers

Individual: a preparer who prepares 11 or more acceptable original individual income tax returns with tax software in a calendar year must e-file all acceptable individual returns that year and every year after. Corporate, partnership and fiduciary: 10 or more acceptable original returns. Individual, corporate, partnership and fiduciary income tax returns; paper returns with 2-D barcodes no longer count as electronically filed. Corporations with $5 million of assets, partnerships with 50 or more partners and estates or trusts with 20 or more beneficiaries must also e-file. Client opt-out: Form EOO, Taxpayer E-file Opt Out Election Form, signed by the taxpayer (both spouses on a joint return) and the preparer and attached to the paper original individual return; the 2-D barcode is still required. Opted-out returns still count toward the preparer's mandate total. Opting to paper file the federal 1065 does not exclude a partnership return from the mandate. Penalty: Possible random monitoring visit; if failure is due to willful neglect and not reasonable cause, the preparer's acceptance in the Alabama e-file program is revoked. source Public record

Transcripts and account records

Mail Form 4506-A, Request for Copy of Tax Form or Tax Account Information, with payment to the Income Tax Administration Division, P.O. Box 327410, Montgomery, AL 36132-7410. The Department will not send copies of individual returns electronically. Form 4506-A, Request for Copy of Tax Form or Tax Account Information (Rev. 5/22). Who can ask: The taxpayer; the form can name a third party to receive the information by mail. A copy of a tax return and all attachments (certified on request), the amount of refund and interest received, or the amount of tax and interest paid; no more than 4 tax periods per request. Fee: $5.00 each for a copy of a return and attachments; no charge for refund or tax paid information. Turnaround: Allow 8 to 10 weeks. Online for representatives: Returns that appear in a MAT account can be viewed there; the FAQ points to Form 4506-A when a return is not in MAT. request source Public record

Online access for professionals

My Alabama Taxes (MAT), third party and bulk filing access. With an agent account and the client's approval, file returns and submit payments for clients with one logon, either by entering returns on each client account or by bulk uploading text files. Submit the Third Party/Bulk Filing Application (BF1) to get an agent account. Add a client with Add access to an existing account, entering the tax account number, E-file Sign on ID, E-file Access Code and possibly the client's third-party password; a client who chose not to allow third-party logons must first change that setting. source Public record

Recent and coming changes

• Jan 10, 2026 Rule 810-3-28-.07, mandatory e-file of partnership and LLC returns, amended (published November 26, 2025) source Public record

No paid preparer registration program was found on the Department pages read; registration is set to false on that basis. Alabama does not require a copy of federal Form 8633: an IRS-accepted e-file provider using approved software is automatically accepted into the Alabama e-file program.

Not confirmed: How and where to submit Form 2848A (MAT upload, fax or mail) and any processing time: not stated on the form Whether the federal Form 2848 is accepted outside audits: the statement found is on the audit process pages Whether the PTIN is required on Alabama returns: the practitioner page says only that paid preparer information must be completed What the January 10, 2026 amendment to Rule 810-3-28-.07 changed A practitioner phone line: none found A primary source confirming that Alabama has no paid preparer registration rule (registration false rests on absence)

Rules for tax professionals in every state

Federal tax data sharing

15 IRS data-sharing agreements with agencies in Alabama, for any purpose (TIGTA, as of March 2026) source Public record; FUTA credit certified to the IRS by Alabama Department of Workforce source Public record. How the IRS shares tax data with the states

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