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54% Cut in AL Unemployment Taxes is Welcome News for Struggling Small Businesses

January 18, 2023 Last Edit: June 5, 2025

This is the first time Alabama has dropped into the lowest tax rate schedule since 1997

54% Cut in AL Unemployment Taxes is Welcome News for Struggling Small Businesses

NFIB State Director Rosemary Elebash said the recent announcement that most employers in the state will see a 54% reduction in their 2023 unemployment insurance taxes is welcome news for Alabama‘s small businesses. “Small businesses have really struggled financially these past several years because of the pandemic, labor and supply chain issues, and inflation. This announcement is one more sign that things are turning around. “The money Main Street businesses save on unemployment insurance taxes is money they can spend on additional staff and other expenses.” This is the first time Alabama has dropped into the lowest tax rate schedule since 1997. This year’s average tax rate is also the lowest in recorded history. Additionally, no shared costs will be incurred by employers this year, following several years of shared-cost collections related to the pandemic. To learn more, read the statement from the Alabama Department of Labor.

Topics:

Taxes

State:

Alabama

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