Read verified reviews from business owners, find state/local incentives, and understand key decision data.

Target Industries

Advanced Manufacturing

Birmingham has a rich history in manufacturing, and this sector continues to evolve with a focus on high-tech areas like aerospace, automotive, and medical devices. The city offers a skilled workforce, research facilities, and competitive land costs, making it a hub for innovative manufacturers.

Logistics and Distribution

Birmingham's central location in the Southeast, coupled with excellent highway access and air cargo facilities, makes it ideal for logistics companies. This makes it a strategic point for distribution and transportation networks.

Financial Services

Birmingham is home to several major banks and financial institutions, making it a significant financial center in the region. The city welcomes companies across the financial spectrum, from banking and insurance to investment firms and fintech startups.

Tax Rates

Sales Tax: The sales tax rate is 10%, which equates to $10 per $100.   
Corporate Income Tax: The corporate income tax rate is 6.5%, translating to $6.50 per $100.   
Property Tax: The property tax rate is approximately 0.65%, or $0.65 per $100. 

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Business Incentives

Performance-Based Cash Incentive

Receive cash rewards for surpassing performance expectations, encouraging job creation and increased investment, ultimately enhancing profitability.

Property Tax Abatement

Reduce property tax burdens during the initial stages of business establishment, freeing up resources for vital investments, especially beneficial for capital-intensive projects.

Chapter 313 Agreements with School Districts

Customize tax breaks in collaboration with local school districts, focusing on project-relevant areas, potentially yielding substantial long-term tax savings.

Business Climate Overview

Birmingham, Alabama, is strategically located in the north-central region of the state, serving as a significant hub within the Southeastern United States. Its proximity to major highways such as Interstate 65, Interstate 20, and Interstate 59 facilitates easy access to other major city centers, including Atlanta, Nashville, and Memphis, enhancing its appeal for businesses and residents alike.
Demographics: Birmingham boasts a diverse population, with a workforce that reflects a wide range of skills and industries. The city's demographic profile is a blend of young professionals, families, and an increasing number of retirees, attracted by the city's amenities and lifestyle. The workforce is well-supported by local educational institutions, providing a steady stream of skilled graduates in various fields.
Wages: The median household income in Birmingham is around $35,000, while the median rent for a home is approximately $900. These figures reflect the city's affordability, especially when compared to other major urban centers in the United States.
Key Industries: Birmingham has historically been a center for steel production, but in recent years, the city has diversified its economic base. Key industries now include healthcare, banking, and finance, as well as education and technology. The city's economic landscape is also characterized by a growing startup scene, particularly in the biotechnology and information technology sectors.
Quality of Life: Birmingham offers a high quality of life, with a cost of living that is below the national average. Residents enjoy a variety of outdoor and recreational activities, thanks to the city's parks, museums, and cultural festivals. The nearby Appalachian Mountains provide opportunities for hiking, biking, and camping, making Birmingham a great place for outdoor enthusiasts.
Education: The city is home to several higher education institutions, including the University of Alabama at Birmingham (UAB), Birmingham-Southern College, and Samford University. These institutions not only contribute to the local workforce but also engage in significant research and development activities, particularly in the fields of medicine and healthcare.
Businesses: Birmingham is home to several top corporations and companies, including Regions Financial Corporation, Shipt, and the health care services provider Encompass Health. These companies, along with a burgeoning small business and entrepreneurial ecosystem, contribute significantly to the city's economic vitality.
Economic Development Organizations: Economic development in Birmingham is supported by several organizations, including the Birmingham Business Alliance, Innovation Depot, and REV Birmingham. These organizations play a crucial role in fostering a business-friendly environment, supporting startups, and attracting investment to the city.

Map

Birmingham, AL image

Our Team

Cornell Wesley	 photo
Cornell Wesley

Director

City of Birmingham
cornell.wesley@birminghamal.gov

Sarah McMillan photo
Sarah McMillan

Manager of Talent and Workforce Development

City of Birmingham
sarah.mcmillan@birminghamal.gov

Coreata Houser photo
Coreata Houser

Deputy Director

City of Birmingham
coreata.houser@birminghamal.gov

Media

FAQ

Birmingham's key industries include advanced manufacturing, logistics and distribution, financial services, healthcare, and technology/startups.
The local sales tax rate is 4%, the state sales tax rate is 4%, and the county sales tax rate is 2%, resulting in a combined rate of 10%. Corporate income tax is 6.5%, and property tax rates vary but are typically around 20% of the assessed value for commercial and industrial properties.
Birmingham provides incentives such as Performance-Based Cash Incentives for exceeding expectations, Property Tax Abatement to reduce tax burdens, and Chapter 313 Agreements with School Districts for customized tax breaks.
Birmingham offers a strategic location with easy access to major highways and transportation hubs, a diverse and skilled workforce, and a supportive environment for startups and established companies alike.
Birmingham Business Alliance's Talent Initiative connects businesses with skilled workers through training programs, job fairs, and career resources. Partnerships with local educational institutions offer customized training programs and access to qualified talent.
Birmingham boasts a strategic location with excellent transportation infrastructure, including major highways and an international airport. The city also offers business incubation centers, low-interest loan programs, and access to duty-free trade options.
Birmingham is home to major employers like Regions Financial Corporation, HealthSouth, AT&T, Honda, and Mercedes-Benz, along with a growing number of startups and tech companies supported by organizations like Innovation Depot.
Birmingham provides a high quality of life with a low cost of living, a vibrant food scene, a rich history, and numerous outdoor recreational activities, including parks, hiking trails, and cultural festivals throughout the year.