How to Pay Alabama Business Privilege Tax Online

To pay the Alabama Business Privilege Tax online, log in to the state’s My Alabama Taxes (MAT) portal at myalabamataxes.alabama.gov, open your Business Privilege Tax account, file the correct return for your entity type (Form CPT or Form PPT), and submit payment by ACH debit or by credit or debit card.1Alabama Department of Revenue. Make A Payment ACH debit carries only a minimal processing fee; card payments add a 4% convenience fee on the transaction amount.2Alabama Department of Revenue. If I eFile How Do I Make a Payment

What to Have Ready Before You Log In

Gather everything first. A mismatched number mid-filing can route your payment to the wrong account, and starting over wastes time.

  • Your Federal Employer Identification Number, entered in the exact 99-9999999 format. If you’ve lost the original IRS assignment notice (CP 575), you can request a replacement verification letter (IRS Letter 147C) by calling the IRS Business and Specialty Tax Line at 1-800-829-4933.
  • Your Alabama Secretary of State ID, a six-digit number formatted as 999-999. You can enter all nines if you don’t have it, but the Department of Revenue recommends filing with the accurate number for proper verification.3Alabama Department of Revenue. What Taxpayers Must File an Alabama Business Privilege Tax Return
  • Your Business Privilege Tax account number, which appears on prior notices or correspondence from the Department of Revenue. You also need it to set up a MAT account.
  • Your financial figures: total assets, total liabilities, and net worth as of the first day of your tax year. Alabama defines net worth as the book value of assets minus liabilities, and you can subtract the book value of investments in other entities already doing business and paying privilege tax in Alabama.4Justia. Alabama Code 40-14A-23 – Definition of Net Worth
  • Your prior-year federal return, since federal taxable income apportioned to Alabama determines which rate tier the portal applies.

Set Up a My Alabama Taxes Account

If this is your first time, you need a MAT account before you can file or pay. Go to myalabamataxes.alabama.gov and choose the option to create a new account. You’ll need your tax account number, sign-on ID, and access code from the Department of Revenue.1Alabama Department of Revenue. Make A Payment Business accounts are separate from individual income tax accounts, so pick the correct account type during setup.

Once activated, the account lets you file returns, make payments, and pull records for any tax type the Department of Revenue administers. The system keeps your filing and payment history, so next year’s return goes faster.

Pick the Right Form

Alabama uses two forms for the Business Privilege Tax, and filing the wrong one causes delays.5Alabama Department of Revenue. Form PPT Instructions

  • Form CPT is for C-corporations, financial institution groups, insurance companies, REITs, business trusts, and any limited liability entity that elected to be taxed as a corporation for federal purposes.
  • Form PPT is for S-corporations, limited liability entities, and disregarded entities.

S-corporations filing Form PPT also owe a $10 Secretary of State corporate annual report fee on the return, along with a completed Schedule AL-CAR. Limited liability entities taxed as corporations don’t owe that fee.5Alabama Department of Revenue. Form PPT Instructions

File the Return and Submit Payment

In MAT, open your Business Privilege Tax account and select the return for the current tax year. The digital form walks you through entering total assets, applicable subtractions, and your net worth calculation. The portal applies the correct rate tier based on the taxable income figures you enter and calculates the tax due automatically. Rates range from $0.25 to $1.75 per $1,000 of net worth, with a $100 minimum for most entities and a $15,000 cap for general business entities.6Alabama Department of Revenue. Business Privilege Tax

When the calculated tax looks right, move to the payment screen. You have two electronic options:1Alabama Department of Revenue. Make A Payment

  • ACH debit pulls directly from your business bank account with minimal processing fees. This is the cheaper option.
  • Credit or debit card is accepted for all tax types, but carries a 4% convenience fee on the transaction amount. On a $15,000 tax bill, that’s an extra $600, so ACH is almost always the better choice at larger amounts.2Alabama Department of Revenue. If I eFile How Do I Make a Payment

After you click submit, the system generates a confirmation number. Save or print it right then. The MAT portal stores your filed return and payment history, but having that confirmation on hand is the fastest way to prove timely filing if a question comes up later.

Paying by Phone Instead

If you can’t complete the payment online, call the Taxpayer Assistance Group at (334) 353-8096. Both credit card and ACH debit options are available by phone.1Alabama Department of Revenue. Make A Payment

When the Payment Is Due

For the payment to count as on time, the return and payment deadline matches the due date of your corresponding federal return.7Alabama Department of Revenue. When Is the Alabama Business Privilege Tax Return Due

  • Calendar-year C-corporations: three and a half months after the start of the tax year, which is April 15.
  • C-corporations with a June 30 fiscal year: two and a half months after the start of the tax year, which is September 15.
  • Limited liability entities and S-corporations: two and a half months after the start of the tax year. For calendar-year filers, that’s March 15.

If This Is a Brand-New Entity

A new business doesn’t wait for the regular annual cycle. Alabama requires an initial privilege tax return on Form BPT-IN within two and a half months after the entity incorporates, organizes, qualifies, or starts doing business in the state.8Alabama Department of Revenue. Alabama Business Privilege Tax No extension is available for the initial return. Form an LLC in January and your BPT-IN is due by mid-March. After the initial return, the entity moves onto the regular annual schedule.

What a Late Payment Costs

Alabama charges interest on unpaid privilege tax balances. The Department of Revenue sets the rate quarterly under Alabama Code Section 40-1-44. As of early 2026, the annual rate is 7%, calculated daily (7% ÷ 365 × days late × tax owed).9Alabama Department of Revenue. Quarterly Interest Rates Because the rate can change each quarter, a bill left unpaid for months may span multiple rates. The Department can also assess penalties for failure to file. Filing on time with estimated figures and amending later costs far less than letting interest and penalties accumulate.