SCorpDesk / 2026 S-Corp & QBI Guides / Alabama (AL) 2026 S-Corp Tax Calculator, PTET Election & Franchise Tax Guide
Alabama (AL) 2026 S-Corp Tax Calculator, PTET Election & Franchise Tax Guide
What are the 2026 S-Corp tax and PTET rules in Alabama?
In Alabama (AL), the 2026 S-Corporation election rule is: Recognizes Federal Form 2553. For the Pass-Through Entity Tax (PTET) deduction: 5.0% Electing Pass-Through Entity Tax (PTET). Entity-level franchise/minimum tax: $100 Min Business Privilege Tax (Exempt if under threshold).
In Alabama (AL), the 2026 S-Corporation election rule is: Recognizes Federal Form 2553. For the Pass-Through Entity Tax (PTET) deduction: 5.0% Electing Pass-Through Entity Tax (PTET). Entity-level franchise/minimum tax: $100 Min Business Privilege Tax (Exempt if under threshold).
Open Alabama 2026 S-Corp & 20% Permanent QBI Calculator
2026 Alabama (AL) S-Corporation Statutory Tax Matrix
| Alabama S-Corp Compliance Area | 2026 Statutory Rule |
|---|---|
| State S-Corp Election Recognition | Recognizes Federal Form 2553 |
| Pass-Through Entity Tax (PTET) Election | 5.0% Electing Pass-Through Entity Tax (PTET) |
| Annual Minimum / Franchise Tax | $100 Min Business Privilege Tax (Exempt if under threshold) |
| Federal Section 199A QBI Deduction | Up to 23% of qualified K-1 income under Public Law 119-21 |
| Home Office & Mileage Deduction Method | Must use an IRC Section 62(c) Corporate Accountable Plan |
Frequently Asked Questions
Does Alabama require a separate state S-Corp election in 2026?
For Alabama (AL): Recognizes Federal Form 2553.
What is the Alabama S-Corp franchise or minimum tax for 2026?
In Alabama: $100 Min Business Privilege Tax (Exempt if under threshold).