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 the DeKalb County Economic Development Authority staff 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
Visit the Alabama Department of Revenue website for a full overview of this incentive.
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 |
| A mill is one-tenth of one cent. |
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 |
Millage information from Alabama Department of Revenue
General FAQ questions for Alabama Property Tax
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.
General FAQ questions for Alabama Property Tax
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
Visit the Alabama Department of Revenue website Tax Abatement page for more information.
For more sales and use tax information, visit the Alabama Department of Revenue website.
