Taxes
The following is some general information about the tax structure for the City of Madison, Alabama. State and local tax incentives may be available to qualifying new and expanding companies through the IDB. For additional information see Incentives.
Property Tax
Alabama property taxes have a millage rate of 6.5 mills which counts towards Madison’s rate of 57.5 mills. Further, all Alabama business property, both real and personal, is to be taxed at 20% of its fair market value. Therefore, on a business with a property valued at $1,000,000, $1,150 would be owed for state property taxes. ($1,000,000 x 20% x .00575 mills).
Sales Tax
| TAX TYPE | CATEGORY | TAX RATE |
|---|---|---|
| Sales & Use | General | 3.5% |
| Sales & Use | Machinery | 1.75% |
| Sales & Use | Automotive | 1.75% |
| Lodging | N/A | 7% plus $1 per room per night |
| Liquor | N/A | 10% |
| Gasoline | N/A | $0.02/gallon |
| Cigarettes | N/A | $0.10/pack |