Alabama § 40-18-2 - Levied; Persons and Subjects Taxable.
Full text of Alabama Code of Alabama § 40-18-2 — Levied; Persons and Subjects Taxable., with citation guidance and answers to common questions.
§ 40-18-2. Levied; Persons and Subjects Taxable.
(a) In addition to all other taxes now imposed by law, there is hereby levied and imposed a tax on the taxable income, as defined in this chapter, which tax shall be assessed, collected, and paid annually at the rate specified herein and for each taxable year as hereinafter provided. Persons and subjects taxable under this chapter are:
(1) Every individual residing in the State of Alabama.
(2) Every corporation domiciled in the State of Alabama or licensed or qualified to transact business in the State of Alabama.
(3) Every corporation doing business in the State of Alabama or deriving income from sources within the State of Alabama, including income from property located in the State of Alabama.
(4) Every nonresident estate or nonresident trust receiving income from property owned or business transacted in the State of Alabama.
(5) Every resident estate and resident trust.
(6) Every nonresident individual receiving income from property owned or business transacted in the State of Alabama, except as provided in Section 40-18-2.2.
(b) Every natural person domiciled in the State of Alabama, and every other natural person who maintains a permanent place of abode within the state or spends in the aggregate more than seven months of the income year within the state, shall be presumed to be residing within the state for the purposes of determining liability for income taxes under this chapter.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-18-2
What does Code of Alabama § 40-18-2 cover?
Section 40-18-2 ("Levied; Persons and Subjects Taxable.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 40-18-2?
A common citation format is "Code of Alabama § 40-18-2" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 40-18-2 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.