Alabama Sales Tax

Rates

  • State sales tax rate 4%
  • Local rate1% - 7%
  • Combined rate5% - 11%
  • *Local rates are set by the county, city or other taxing district.
  • *Shipping is not taxable if separately stated

Major Cities/Counties

  • Birmingham 10%
  • Mobile 10%
  • Montgomery 10%
  • Huntsville 9%
  • Tuscaloosa 9%
  • Anniston 10%
  • Gadsden 10%
  • Decatur 9%

Alabama Sales & Use Tax Information

The Alabama (AL) state sales tax rate is currently 4%, ranking 40th-highest in the U.S. Depending on local municipalities, the total tax rate can be as high as 11%. The average local rate is 5.15%. The average combined tax rate is 9.15%, ranking 5th in the US.

In some of the cities and counties, local taxes apply to both intra-state and inter-state transactions.

The Alabama's state tax rate varies depending of the type of purchase: auto - 2%, farm machinary - 1.5%, general goods - 4%, food from vending machine - 3%. Some of the Alabama tax type includes: consumers use, lodging tax, rental tax, sales tax, sellers use, and lodgings tax.

In Alabama, prescription drugs, gasoline and motor oil items, fertilizer/insecticides/fungicides for agricultural purposes, seeds for planting purposes, feed for livestock and poultry, and livestock are considered tax exempt. Alabama is one of the few states that does not exempt groceries and food from the state sales tax.

Alabama has two annual sales tax holiday weekends this year: Back to school holiday (7/20/2018 - 7/22/2018) and Severe Weather Holiday (2/23/2018 - 2/25/2018).

Alabama starts collecting online sales taxes Oct 1, 2018. SSUT, already utilized by Amazon, allows merchants to pay a flat 8 percent sales taxes and avoid navigating the more than 200 different city and county sales taxes across the state.

Lowest Tax Rates

  • Altoona 5%
  • Ashford 5%
  • Attalla 5%
  • Birmingham 5%
  • Boaz 5%
  • Calvert 5%
  • Campbell 5%
  • Chatom 5%

Highest Tax Rates

  • York 11%
  • Fort Deposit 10.5%
  • Adamsville 10%
  • Alexander City 10%
  • Allgood 10%
  • Alton 10%
  • Andalusia 10%
  • Anniston 10%