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The .gov means it's official

Government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on an official government site.

The site is secure

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Rental or Leasing Tax

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  • Rental or Leasing Tax

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Authority

Section 40-12-220 through 40-12-227, Code of Alabama 1975.

Privilege tax on persons engaging in the business of leasing or renting tangible personal property.

4% of gross proceeds from leasing or rental of tangible personal property.

1.5% of gross proceeds from leasing or renting automotive vehicles, truck trailers, semi-trailers, or house trailers.

2% of gross proceeds from leasing or rental of linens or garments.

In addition to the above, counties and municipalities may levy local rental or lease taxes ranging in rate between 0.375% to 7%. Some of the local rental taxes are collected by ALDOR, third party administrators, and others are self-administered.

General Fund.