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An official website of the Alabama State government.

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Services

Services

Business and License

Business and License

Collections

Collections

Entity Registration

Entity Registration

Human Resources

Human Resources

Income Tax

Income Tax

Legal

Legal

Motor Vehicle

Motor Vehicle

Property Tax

Property Tax

Sales and Use

Sales and Use

Tax Incentives

Tax Incentives

Tax Policy

Tax Policy

Quarterly Interest Rates

  • Quarterly Interest Rates

Formula example: 5% ÷ 365 = daily rate x number of days late x tax = interest due

Year1st Qtr2nd Qtr3rd Qtr4th Qtr
20223%4%5%
20213%3%3%3%
20205%5%3%3%
20196%6%5%5%
20184%5%5%5%
20174%4%4%4%
20163%4%4%4%
20153%3%3%3%
20143%3%3%3%
20133%3%3%3%
20123%3%3%3%
20113%4%4%3%
20104%4%4%4%
20095%4%4%4%
20087%6%5%6%
20078%8%8%8%
20067%7%8%8%
20055%6%6%7%
20044%5%4%5%
20035%5%5%4%
20026%6%6%6%
20019%8%7%7%
20008%9%9%9%
19997%8%8%8%
19989%8%8%8%
19979%9%9%9%
19969%8%9%9%
19959%10%9%9%
19947%7%8%9%
19937%7%7%7%
19929%8%8%7%

As established by 26 USCA 6621, According to Section 40-1-44, Code of Alabama 1975. According to Section 40-1-44 of the Code of Alabama 1975, the Alabama Department of Revenue will calculate interest on underpayments and overpayments (where applicable) at the same annual rate, with the exception of land sold by the state for taxes, which shall be calculated at 12% as provided for under Section 40-5-9.

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