Providing A Welcoming Tax and Business Climate

The City of Hoover and the State of Alabama offer an attractive taxation environment.  In addition, the city and the state can offer a number of tax incentives to assist with a cost-effective start-up and to provide continued operational savings for qualifying businesses and industries.  To learn more, contact the City’s Office of Economic Development. Also, visit the Alabama Department of Revenue's Tax Incentives Page for further details, forms, etc.

State Corporate Income Tax

• Corporate income tax rate of 6.5 percent
• Full deduction for all federal income taxes apportioned to Alabama creating a significantly reduced net effective rate.
• 15-year carry-forward of net operating losses

No Occupational Tax is imposed in the City of Hoover, providing less burden to businesses and their employees.

State Business Privilege Tax

The business privilege tax is an annual tax paid by corporations and limited liability entities (including disregarded entities) for the privilege of conducting business in Alabama. For detailed information, visit the Alabama Department of Revenue’s Business Privilege Tax website

State and Local Property (Ad Valorem) Tax

Industrial and commercial real property in Alabama are assessed at 20% of fair market value. See the rates below the City, Jefferson and Shelby Counties, and the State.

Statutory Tax Abatements 

State law allows for the abatement of city, county, and state non-educational sales/use taxes and non-educational property taxes for up to 10 years for qualifying projects. Based off a review of the local impact, these are approved by the Hoover City Council. Please contact our staff for more information. 

State and Local General Sales Tax