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Taxes

state income tax

Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.

There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.

In Alabama, like most states, residents are subject to state income tax in addition to federal income tax. The state income tax in Alabama applies to the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities. The tax rates and exemptions can vary, with different brackets for individuals and corporations. Alabama's tax system is progressive for individual income, meaning that the rate increases as income rises. It's important for residents and entities in Alabama to be aware of their tax obligations under state law and to file their state income tax returns by the due date each year to avoid penalties and interest. Unlike the states mentioned that do not have a state income tax or only tax certain types of income, Alabama has a more comprehensive state income tax structure.

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Taxes

state income tax

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Alabama State Code

Alabama State Code

Taxes

state income tax

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