Business Costs
Limestone County, Alabama has a pro-business environment. Take advantage of tax incentives, business assistance programs and tax rates that are among the lowest in the nation. The Limestone County Economic Development Association can provide industry-specific costs. To request more information, call 256-232-2386.
Click the tabs below to learn more about the cost of doing business in Limestone County, Alabama:
Business Privilege Tax
Alabama’s business privilege tax is determined by a company’s net worth and is based on the company’s ability to pay. The rate ranges from $.25 to $1.75 per $1,000 of net worth in Alabama.
- Minimum Privilege Tax: $100
- Maximum Privilege Tax: $15,000¹
¹Financial institutions, financial institution groups and insurance companies may have a higher maximum privilege tax rate.
Ad Valorem Tax
Alabama has lower average ad valorem (property) taxes than many other southern states. Business property, both real and personal, is taxed on 20% of its fair market value in addition to millage rates.
| Alabama | Limestone County | City of Athens | Total | |
|---|---|---|---|---|
| Tax Rate (milage) | 6.5 | 23.5 | 10.0 | 40.0 |
| Education | 3.0 | 10.0 | 5.0 | 18.0 |
Corporate Income Tax
Alabama has one of the lowest corporate income tax rates in the United States. The corporate income tax rate is based on the net taxable income of business conducted within the state and is determined by an equally weighted three-factor formula of property, payroll and sales to total net income.
The corporate income tax rate in Alabama is currently 6.50%. Alabama allows for a full deduction for federal income tax paid which nets to a rate of approximately 4.50%.
Sales & Use Tax
Alabama offers very competitive incentives to offset the business costs incurred by sales and use taxes for new and expanding industries in Alabama.
| Alabama | Limestone County | City of Athens | Total | Education | |
|---|---|---|---|---|---|
| Sales Tax | 4.00% | 2.00% | 3.00% | 9.00% | 3.20% |
| Use Tax | 4.00% | 2.00% | 2.00% | 8.00% | 3.00% |
| Sales Tax on Machinery | 1.50% | 1.00% | 0.75% | 3.25% | 1.375% |
| Use Tax on Machinery | 1.50% | 1.00% | 0.75% | 3.25% | 1.375% |
Unemployment Insurance
Alabama’s unemployment insurance rates can be found on the Alabama Department of Industrial Relations website.
- New Account Tax Rate: 2.70%
- Taxable Wage Base: $8,000
Workers Compensation Insurance
Employers with four or more full-time or part-time employees, including officers of a corporation, are required to have worker’s compensation insurance. More information about Alabama’s workers compensation law can be found on the Alabama Industrial Relations website.
The minimum and maximum weekly worker compensation payment in Alabama is:
- Minimum: $136.00
- Maximum: $493.00
Average Area Wages
In 2013, several industries located in Morgan and Limestone Counties participated in a wage survey. Over 40 companies and nearly 6,000 employees were surveyed. This survey is conducted annually. Contact the LCEDA office for survey results.
