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Personal Income Tax in Alabama

April 13, 2006

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If you are a resident or non-resident of Alabama and receive taxable income individually from property owned or business transacted in Alabama, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership or limited liability company, or sole proprietorship, you will be subject to a personal income tax on the business income that passes through to you. In addition, local income taxes apply in certain areas of Alabama, so be sure to check with your local government.

The following rates are applicable to the amount of income over the exempted amount:

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