State tax debt in Alabama is collected by Alabama Department of Revenue, not the IRS. Payment plans are up to the department. Call Collection Services at 334-242-1220 or use My Alabama Taxes. Interest keeps adding up during the plan.
Key facts for Alabama
- State income tax
- 2% to 5%. The 5% rate starts at $3,000 of taxable income for single filers. Source
- Payment plan
- Payment plans are up to the department. Call Collection Services at 334-242-1220 or use My Alabama Taxes. Interest keeps adding up during the plan. Source
Two debts, two sets of rules
- The IRS collects federal taxes, with its own letters and plans.
- Alabama Department of Revenue collects Alabama taxes, with its own rules.
- A plan with the IRS does not stop the state from collecting, and the other way around.
Common questions in Alabama
Who collects state taxes in Alabama?
The Alabama Department of Revenue. It is separate from the IRS. A plan with one does not stop the other from collecting.
Can I get a payment plan for Alabama taxes?
Payment plans are up to the department. Call Collection Services at 334-242-1220 or use My Alabama Taxes. Interest keeps adding up during the plan.
Can TaxTruce help with Alabama tax debt?
Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Alabama. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.
Results depend on your situation. Not every case qualifies.
Sources
Facts on this page come from Alabama Department of Revenue and are linked. Rules change. Check with Alabama Department of Revenue or a licensed tax pro before you act. We are not affiliated with Alabama Department of Revenue.