Major Taxes

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.

Millage rates: City of Hoover within Jefferson County

State of Alabama

6.5 mills

City of Hoover

6.5 mills

Hoover Schools

24.0 mills

Hoover Schools (special district)

13.9 mills

Jefferson County

13.5 mills

County-wide school tax

8.2 mills

TOTAL

72.6 mills

Millage rates: City of Hoover within Shelby County

State of Alabama

6.5 mills

City of Hoover

6.5 mills

Hoover Schools

24.0 mills

Hoover Schools (special district)

6.0 mills

Shelby County

7.5 mills

County-wide school tax

16.00 mills

TOTAL

66.5 mills

State and Local General Sales Tax

General sales tax rates: City of Hoover within Jefferson County

State of Alabama

4.0%

City of Hoover

3.5%

Jefferson County

1.0%

Jefferson County Special

1.0%

TOTAL

9.5%



General sales tax rates: City of Hoover within Shelby County

State of Alabama

4.0%

City of Hoover

3.5%

Shelby County

0.5%

Shelby County Schools

0.5%

TOTAL

8.5%