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Persons claiming single or zero exemption: 2 percent on first $500 of taxable wages, 4 percent on next $2,500, and 5 percent on all over $3,000. Persons claiming married exemption: 2 percent on first $1,000 of taxable wages, 4 percent on next $5,000, and 5 percent on all over $6,000.

Form PPT, Alabama Business Privilege Tax Return, and Form BPT-IN, Alabama Business Privilege Tax Initial Privilege Tax Return is only applicable to limited liability entities such as Limited Partnerships, Limited Liability Companies, and Limited Liability Partnerships.

Use the Tax Withholding Estimator on IRS. The Tax Withholding Estimator works for most employees by helping them determine whether they need to give their employer a new Form W-4. They can use their results from the estimator to help fill out the form and adjust their income tax withholding.

Overview of Alabama Taxes In Alabama, the state income tax rate ranges from 2% to 5%. If you are filing status of single, married filing separately, or head of household, your taxation comprises 2% on the initial $500 of taxable income, 4% on earnings up to $3,000, and 5% on income surpassing that amount.

Alabama uses a progressive tax system for its state income tax rates, ranging from 2% to 5%. That means your specific state income tax rate depends on your income level and filing status. Other factors, like deductions and credits, can also impact how much you owe.

If you are required to file both returns, the total personal exemption ($1,500 or $3,000) and the dependent exemption ($300) must be claimed on the part year return (Form 40). No personal exemption or dependent exemption can then be claimed on the nonresident return (Form 40NR).

Revenue and Taxation § 40-14A-22 SECTION 40-14A-22 LEVY AND AMOUNT OF TAX. (a) Levy of tax. There is hereby levied an annual privilege tax on every corporation, limited liability entity, and disregarded entity doing business in Alabama, or organized, incorporated, qualified, or registered under the laws of Alabama.

Alabama Form 40 is used by full-year and part-year residents to file their state income tax return. The purpose of Form 40 is to calculate how much income tax you owe the state. Nonresident filers will complete Alabama Form 40NR. Taxpayers with simple returns have the option to use Form 40A (Short Form).

Ing to the Alabama business privilege tax law, every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama is required to file an Alabama Business Privilege Tax Return and Annual Report.