Alabama: corporate income tax, a franchise (privilege) tax and no entity annual report.
Each fact below cites the agency page we read and the day we read it. Where a rule is still being confirmed, the page says so instead of showing a zero.
Verified facts
Corporate income tax
Yes
6.5 percent of annual net income, with a deduction allowed for federal income tax paid or accrued
Franchise or privilege
Yes
The Alabama Business Privilege Tax replaces the domestic and foreign franchise tax: the Department states the Franchise Tax return should not be filed. Measured on net worth in Alabama plus additions, less exclusions, times the apportionment factor; rate tiered from $0.25 to $1.75 per $1,000 of…
Entity annual report
No
The Alabama Secretary of State states: 'Corporations authorized to transact business in Alabama are no longer required by law to file an annual report with the Secretary of State.' No Secretary of State annual report due date therefore…
Return due date
Published rule
May 15 (one month after the federal Form 1120 due date of April 15, per Act 2022-53)
Extension
Not verified
For tax years beginning on or after January 1, 2021 all Alabama C corporations and Alabama affiliated groups are automatically granted an extension of one additional month following the federal due date including federal extensions. The Department states…
Not verifiedZero activity / minimum tax
The business privilege tax 'remains due every registered year until the entity is legally dissolved/withdrawn through Alabama Secretary of State, regardless of whether or not such entity is actively…
Long-form guide in professional review
Dates, extensions and payments
Filing and payment dates stay separate wherever the source supports it.
- Filing
Return filing
May 15 (one month after the federal Form 1120 due date of April 15, per Act 2022-53)
15th day of the 5th month following the end of the fiscal year; exception: a June 30 fiscal year end is due October 15
- Entity report
Entity report
No entity annual report is required
The Alabama Secretary of State states: 'Corporations authorized to transact business in Alabama are no longer required by law to file an annual report with the Secretary of State.' No Secretary of State annual report due date therefore…
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Frequently asked questions
Does Alabama impose a corporate income tax?
Yes. 6.5 percent of annual net income, with a deduction allowed for federal income tax paid or accrued Form: Form 20C, Alabama Corporation Income Tax Return.
Does Alabama charge a franchise or privilege tax?
Yes. Check the fact chip and the linked official source before budgeting for it.
When is the Alabama corporate return due?
May 15 (one month after the federal Form 1120 due date of April 15, per Act 2022-53)
Does an extension also postpone the tax payment?
No. The extension moves the filing date, not the payment date; unpaid tax can accrue penalty and interest.
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