Frequently Asked Questions

The Occupational Tax is a municipal tax levied on the gross receipts or compensation individuals earn from employment within the City of Leeds. It helps fund essential city services and local education.
Reference: Leeds Municipal Code Article 12-III

All individuals working within the city limits of Leeds must pay the Occupational Tax. This includes full-time, part-time, temporary employees, and non-residents working within the city.
Reference: Leeds Municipal Code §12-90

The tax rate is 1% of your gross earnings, which includes wages, salaries, commissions, bonuses, and other forms of compensation.
Reference: Leeds Municipal Code §12-77

Employers are responsible for withholding the Occupational Tax from their employees’ paychecks and remitting it to the City of Leeds. Employees do not need to take any action unless they are self-employed.
Reference: Leeds Municipal Code §12-79

You are still required to pay the Occupational Tax for the work you perform within Leeds. The tax applies to all work done within the city, regardless of where you live.
Reference: Leeds Municipal Code §12-78

If you are self-employed and conduct business within Leeds, you are responsible for calculating and paying the Occupational Tax based on your gross receipts. You must file monthly returns and pay the tax directly to the city.
Reference: Leeds Municipal Code §12-90

The Occupational Tax must be remitted by the 20th day of the month following the month in which the income was earned. For example, tax for income earned in January must be paid by February 20th.
Reference: Leeds Municipal Code §12-94

Failure to pay the Occupational Tax by the due date will result in interest and penalties. Interest accrues at 12% per annum, and a 10% penalty will be added to the unpaid amount.
Reference: Leeds Municipal Code §12-94

Employers must file monthly and annual returns using the forms provided by the City of Leeds. Self-employed individuals should also use these forms. Forms can be downloaded from the city's website or obtained from City Hall.
Reference: Leeds Municipal Code §12-95

Employers must include a summary of all taxes withheld, along with copies of IRS Form W-2 and Form W-3 for each employee. Self-employed individuals should include documentation of their gross receipts.
Reference: Leeds Municipal Code §12-79

You can contact the revenue examiner via phone at (205) 699-0940 or email at psmith@leedsalabama.gov. Our staff is available Monday through Thursday from 8:00 AM to 4:45 PM to assist you.

Yes, all information provided in Occupational Tax returns is confidential and is used solely for tax administration purposes. Unauthorized disclosure of this information can result in legal penalties.
Reference: Leeds Municipal Code §12-83