Alabama franchise tax: due date, fees & penalties (2026)
Quick answer
Forms PPT and CPT are due with the corresponding federal income returns. Weekend or state-holiday deadlines move to the next business day.
Deadline rule
Forms PPT and CPT are due with the corresponding federal income returns. Weekend or state-holiday deadlines move to the next business day.
Late charge
Late filing: 10% of tax due or $50, whichever is greater. Late payment: 1% per month, up to 25%.
Grace period
An extension to file does not extend the time to pay.
Last verified Oct 25, 2026
How do I file?
Alabama Business Privilege Tax
Entity types
Llc; foreign llc; corporation; foreign corporation
Last verified Oct 25, 2026 — source and quotation
Every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama is required to file an Alabama Business Privilege Tax Return.
Official sourceOfficial filing portal
Last verified Oct 25, 2026 — source and quotation
File and Pay Business Privilege Tax Online
Official sourceConfirm your next step with the agency
Review the official instructions for your situation before applying.
Open the official agency page
When do I file or renew?
Alabama Business Privilege Tax
Deadline rule
Forms PPT and CPT are due with the corresponding federal income returns. Weekend or state-holiday deadlines move to the next business day.
Last verified Oct 25, 2026 — source and quotation
Form PPT and CPT are due on the same date as the corresponding federal income returns are required to be filed as provided under federal law. If the due date falls on a Saturday, Sunday, or state holiday, the return will be due the following business day. Taxpayers whose business privilege tax is calculated to be $100 or less are not required to file a Business Privilege Tax Return (BPTIN/CPT/PPT).Official source
Grace
An extension to file does not extend the time to pay.
Last verified Oct 25, 2026 — source and quotation
An extension of time granted to file is not an extension of time for payment of the tax.Official source
Use your formation date with a supported filing rule to find a date for your calendar.
What does it cost?
Alabama Business Privilege Tax
Late penalty
Late filing: 10% of tax due or $50, whichever is greater. Late payment: 1% per month, up to 25%.
Last verified Oct 25, 2026 — source and quotation
The penalty for failure to timely file an Alabama business privilege tax return by the due date is 10% of the tax shown due with the return or $50, whichever is greater. The penalty for failure to timely pay the amount of tax shown due on an Alabama business privilege tax return equals to 1% of the amount of tax shown due on the return for each month the tax is unpaid – not to exceed 25% of the amount shown due on the return.Official source
Confirm the charges and conditions for your application with the official agency.
Which official sources support this guide?
Official sources and verification (6)
Last verified Oct 25, 2026. Each quotation supports the corresponding published value.
Alabama Business Privilege Tax
Alabama Business Privilege Tax
Form PPT and CPT are due on the same date as the corresponding federal income returns are required to be filed as provided under federal law. If the due date falls on a Saturday, Sunday, or state holiday, the return will be due the following business day. Taxpayers whose business privilege tax is calculated to be $100 or less are not required to file a Business Privilege Tax Return (BPTIN/CPT/PPT).Official source
Last verified Oct 25, 2026
Llc; foreign llc; corporation; foreign corporation
llc; foreign_llc; corporation; foreign_corporation
Every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama is required to file an Alabama Business Privilege Tax Return.Official source
Last verified Oct 25, 2026
Forms PPT and CPT are due with the corresponding federal income returns. Weekend or state-holiday deadlines move to the next business day.
Form PPT and CPT are due on the same date as the corresponding federal income returns are required to be filed as provided under federal law. If the due date falls on a Saturday, Sunday, or state holiday, the return will be due the following business day. Applies to: PPT/CPT filers; taxpayers with calculated business privilege tax of $100 or less are exempt from filing for taxable years beginning after December 31, 2023.
Form PPT and CPT are due on the same date as the corresponding federal income returns are required to be filed as provided under federal law. If the due date falls on a Saturday, Sunday, or state holiday, the return will be due the following business day. Taxpayers whose business privilege tax is calculated to be $100 or less are not required to file a Business Privilege Tax Return (BPTIN/CPT/PPT).Official source
Last verified Oct 25, 2026
An extension to file does not extend the time to pay.
An extension to file does not extend the time to pay.
An extension of time granted to file is not an extension of time for payment of the tax.Official source
Last verified Oct 25, 2026
https://myalabamataxes.alabama.gov/
File and Pay Business Privilege Tax OnlineOfficial source
Last verified Oct 25, 2026
Late filing: 10% of tax due or $50, whichever is greater. Late payment: 1% per month, up to 25%.
Late filing: 10% of tax due or $50, whichever is greater. Late payment: 1% per month, up to 25%.
The penalty for failure to timely file an Alabama business privilege tax return by the due date is 10% of the tax shown due with the return or $50, whichever is greater. The penalty for failure to timely pay the amount of tax shown due on an Alabama business privilege tax return equals to 1% of the amount of tax shown due on the return for each month the tax is unpaid – not to exceed 25% of the amount shown due on the return.Official source
Last verified Oct 25, 2026
Not yet verified: alabama business privilege tax: fee — see the official agency.
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Last verified Oct 25, 2026.
Official sources (2)
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