Tax Rates / Incentives

Included below is a general overview of state and local taxes and the incentives available. You can find complete information on the Alabama Department of Revenue website.

Other incentives may be available to qualifying industries locating to or already located in DeKalb County. To see if your company qualifies for additional incentives or assistance, please contact us at 888-421-7957.

Business Privilege Tax

  • Based on net worth in Alabama
  • Based on a corporation’s ability to pay
  • Rate ranges from $.25 to $1.75 for each $1,000 of net worth in Alabama

Incentives Include:

  • Deduction for pollution control equipment
  • Deduction for air carrier with hum operation

Corporate Income Taxes

  • 6.5% of taxable income allotted to the business done in Alabama
  • Can deduct for all federal income taxes apportioned to Alabama

Incentives Include:

  • Net operating loss carryforward
  • Deduction for pollution control equipment
  • Income tax capital credit
  • Basic skills educational tax credit

Income Tax Capital Credit

  • Up to 5% credit for the total capital costs of qualifying projects
  • Available every year for 20 years

State Unemployment Tax

  • Employees do not contribute
  • Employer requirement is based on first $8,000 of each employee’s compensation
  • Rates vary from 0.5% to 5.4%
  • New employer rate is 2.7%
  • Rates are based on employer’s experience rating

Property Taxes

Municipal Property Taxes

City Millage
Collinsville 5.0
Crossville 5.0
Fort Payne 12.5
Fyffe 5.0
Geraldine 5.0
Hammondville 5.0
Henagar 5.0
Ider 5.0
Lakeview 5.0
Mentone 6.0
Pine Ridge 0.0
Powell 5.0
Rainsville 5.0
Shiloh 0.0
Sylvania 5.0
Valley Head 5.0

DeKalb County Property Taxes

Millage
State 6.5
County 7.5
Hospital 4.0
School (District 1) 14.5
Fire Tax* 3.0
TOTAL 35.5

*Fort Payne City – Exempt

Incentives

  • Abatements available for noneducational property taxes
  • Deduction for pollution control equipment
  • Alabama does not levy property tax on inventory
  • Exemptions available for raw materials inventory

Calculating Your Taxes

After an assessed value has been placed on your property, the amount of taxes is determined by multiplying the correct tax rate by the assessed value, then subtracting the proper exemption.
(Appraised Value) X (Assessment Rate: 20%) = (Assessed Value) X (Millage Rate) = (Tax Amount)

Assessment Rate Classes

  • Class 1: All property of utilities used in the business of such utilities, 30% of market value.
  • Class 2: All property not otherwise classified, 20% of market value.
  • Class 3: All agricultural, forest and residential property, 10% of market value.

Use Sales (Manufacturing Machinery)

Tax Jurisdiction Taxes Abatable Portion
State 1.50%  1.50%
County 0.50%  0.15%
Collinsville 0.50%  0.50%
Crossville 0.75%  0.75%
Fort Payne 1.00%  1.00%
Fyffe 2.00%  2.00%
Geraldine 1.00%  1.00%
Hammondville 0.50%  0.50%
Henagar 1.50%  1.50%
Ider 1.00%  1.00%
Lakeview 1.00%  1.00%
Mentone 0.50%  0.50%
Pine Ridge 0.00%  0.00%
Powell 1.00%  1.00%
Rainsville 2.00%  2.00%
Sylvania 1.50%  1.50%
Valley Head 2.00%  2.00%

Sales Taxes (General)

Municipality State, County,
& Local Tax Rates		 Abatable Portion
 Collinsville  9%  8.70%
 Crossville  8%  7.70%
 Fort Payne  9%  8.70%
 Fyffe  9%  8.70%
 Geraldine  8%  7.70%
 Hammondville  8%  7.70%
 Henagar  9%  8.70%
 Ider  9%  8.70%
 Lakeview  8%  7.70%
 Mentone  7%  6.70%
 Pine Ridge  5%  4.70%
 Powell  8%  7.70%
 Rainsville  9%  8.70%
 Shiloh  5%  4.70%
 Sylvania  8%  7.70%
 Valley Head  8%  7.70%

Incentives

  • Abatements available for noneducational sales/use taxes
  • Deduction for pollution control equipment
  • Exemption for raw materials
  • Sales and use tax reciprocity
  • Exemption for quality control testing and donations to charitable entities
  • Utility gross receipts tax exclusions
  • Exclusions for poultry houses