Take-home pay in Alabama by business structure

At $100,000 of profit, an owner in Alabama keeps $78,197 as an LLC taxed as an S corp and $73,253 as a sole proprietor, after 2026 taxes and fees. Change the profit to see your own numbers.

$78,197 a year

kept from $100,000 of profit as an LLC taxed as an S corp in Alabama, after every tax and fee counted here. That is $9,467 more than as a C corporation.

Alabama, 2026: $100,000 profit, single filer

Structure	Taxes and fees	You keep	Share
Sole proprietorship	$26,747	$73,253	73%
Single-member LLC	$26,747	$73,253	73%
LLC taxed as an S corp most	$21,803	$78,197	78%
S corporation	$21,803	$78,197	78%
C corporation	$31,270	$68,730	69%

What Alabama takes from a business owner

Alabama taxes personal income in 3 brackets, from 2% to 5% (2025, single filer).revenue.alabama.gov, checked Oct 20, 2026
An LLC pays the state no yearly report feerevenue.alabama.gov, checked Oct 20, 2026.
Alabama Business Privilege Tax applies to LLC, LLC as S corp, S corp, C corprevenue.alabama.gov, checked Oct 20, 2026.
An S corp in Alabama can elect to pay the state's income tax itself, a pass-through entity tax of 5%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totalrevenue.alabama.gov.
An S corp owner on payroll pays Alabama unemployment tax at 2.7% on the first $8,000 of salary in the first yearworkforce.alabama.gov, checked Oct 20, 2026.

What you keep at each profit

Profit	Sole prop	LLC	LLC as S corp	S corp	C corp
$50,000	$38,210	$38,210	$38,488	$38,488	$35,889
$100,000	$73,253	$73,253	$78,197	$78,197	$68,730
$150,000	$105,688	$105,590	$113,522	$113,522	$97,623
$250,000	$172,144	$172,003	$182,461	$182,461	$157,016
$500,000	$308,465	$308,171	$336,582	$336,582	$299,528

Single filer, no other income, revenue 1.5 times profit, the default salary for S and C corps. The most kept at each profit is green.

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