Business Costs
Blount County’s city and county leaders encourage a pro-business environment and have adopted an aggressive approach to business, industry, and job development to create employment for local citizens. New and expanding businesses can take advantage of tax incentives, business assistance programs, and some of the lowest tax rates in the country.
Business Privilege Tax
Alabama’s business privilege tax is determined by a company’s net worth and is based on the company’s ability to pay. The rate ranges from $.25 to $1.75 per $1,000 of net worth in Alabama.
Minimum Privilege Tax: $100
Maximum Privilege Tax: $15,000¹
* Source: Alabama Department of Industrial Relations
¹Financial institutions, financial institution groups and insurance companies may have a higher maximum privilege tax rate.
For more information on Alabama’s business privilege tax, visit our Taxes/Incentives page.
Ad Valorem Tax
Alabama has lower average ad valorem (property) taxes than many other southern states. Business property, both real and personal, is taxed on 20% of its fair market value in addition to millage rates.
| Tax District | State | County | Education | Municipal | Total Mileage |
|---|---|---|---|---|---|
| Timber Tax 10 cents per acre | |||||
| County | 6.5 | 16 | 10 | 32.5 | |
| Hayden | 6.5 | 10 | 10 | 6 | 38.5 |
| Oneonta | 6.5 | 16 | 17.5 | 6 | 45.0 |
| Highland Lake | 6.5 | 16 | 10 | 12.5 | 45.0 |
| Snead | 6.5 | 16 | 10 | 9 | 41.5 |
| Blountsville | 6.5 | 16 | 10 | 6 | 38.5 |
| Susan Moore | 6.5 | 16 | 10 | 5 | 37.5 |
| Locust Fork | 6.5 | 16 | 10 | 5 | 37.5 |
| County Line | 6.5 | 16 | 10 | 5 | 37.5 |
| Source: Alabama Department of Revenue |
Corporate Income Tax
Alabama has one of the lowest corporate income tax rates in the United States. The corporate income tax rate is based on the net taxable income of business conducted within the state and is determined by an equally weighted three-factor formula of property, payroll and sales to total net income.
The corporate income tax rate in Alabama is currently 6.50%. Alabama allows for a full deduction for federal income tax paid which nets to a rate of approximately 4.50%.
*Source: Alabama Department of Revenue
For more information on Alabama’s corporate income tax, visit our Taxes/Incentives page.
| Sales Tax | Use Tax | Machine Sales | Machine Use | |
|---|---|---|---|---|
| Alabama | 4.00 | 4.00 | 1.50 | 1.50 |
| Blount County | 2.00 | 2.00 | 1.00 | 1.00 |
| Blount County (unabated) | 1.50 | 1.50 | 0.75 | 0.75 |
| Allgood | 1.00 | - | - | - |
| Blountsville | 2.00 | 2.00 | 0.50 | 0.50 |
| Cleveland | 2.00 | 2.00 | 0.50 | 0.50 |
| County Line | - | - | - | - |
| Hayden | 1.00 | 1.00 | 1.00 | 1.00 |
| Locust Fork | 2.00 | 2.00 | 2.00 | 2.00 |
| Nectar | - | - | - | - |
| Rosa | - | - | - | - |
| Snead | 2.00 | 0.50 | 0.50 | 0.50 |
| Susan Moore | 2.00 | 2.00 | 2.00 | 2.00 |
| Source: Alabama Department of Revenue |
For more information on Alabama’s sales and use tax, visit our Taxes/Incentives page.
Unemployment Insurance
Alabama’s unemployment insurance rates can be found on the Alabama Department of Industrial Relations website.
New Account Tax Rate: 2.70%
Taxable Wage Base: $8,000
*Source: Alabama Department of Industrial Relations
Workers Compensation Insurance
Employers with four or more full-time or part-time employees, including officers of a corporation, are required to have worker’s compensation insurance. More information about Alabama’s workers compensation law can be found on the Alabama Industrial Relations website.
The minimum and maximum weekly worker compensation payment in Alabama is:
Minimum: $136.00
Maximum: $493.00
*Source: Alabama Department of Industrial Relations
Average Area Wages
The Blount County Economic Development Council can provide industry-specific costs. Contact us to request this information.