Business Costs

Industry-specific business costs are available from the Limestone County Economic Development Association. To request more information call us at 256-232-2386.

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.

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.
Alabama
Limestone
County
City of
Athens
Total
Tax Rate (millage) 6.5 23.5 10.0 40.0
Education 3.0 10.0 5.0 18.0
*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.
*Source: Alabama Department of Revenue

Sales & Use Tax
Alabama offers very competitive incentives to offset the business costs incurred by sales and use taxes for new and expanding industries in Alabama.
Alabama
Limestone
County
City of
Athens
Total
Education
Sales Tax 4.00% 2.00% 2.00% 8.00% 3.00%
Use Tax 4.00% 2.00% 2.00% 8.00% 3.00%
Sales Tax on Machinery 1.00% 1.50% 0.75% 3.25% 1.375%
Use Tax on Machinery 1.00% 1.50% 0.75% 3.25% 1.375%
*Source: Alabama Department of Revenue

Unemployment Insurance
More information about 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
In 2008, several industries located in Morgan and Limestone Counties participated in a wage survey. View the results of the 2008 Wage Survey.