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State guides/AL

Alabama Business Privilege Tax Return: deadline, fees, and what happens if you miss it

When it's due

Alabama replaced the traditional annual report with the Business Privilege Tax Return, filed with the Department of Revenue — generally due April 15 (initial return within 2.5 months of formation).

What it costs

Tax is calculated on net worth. Since 2024, entities owing the $100 minimum or less are exempt from filing at all — many small startups no longer file after the initial return. Confirm your situation with the Department of Revenue.

If you miss it

Unpaid privilege tax accrues penalties and interest, and the entity can lose good standing with the state.

Worth knowing

Alabama standing is readable by StandingChecker (the registry reports live entities as 'Exists').

Is your company still in good standing in Alabama?

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Verify details and file directly with the state: www.revenue.alabama.gov