Alabama Sales Tax

On this page you will find handy sales and use tax information about Alabama.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Alabama that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

4.000%

Range of Local Rates

0% – 9.0% Some local jurisdictions do not impose a sales tax.

Local Rates Apply to Use Tax

Yes/No  Some of the cities and counties do apply use tax.

AFFILIATE NEXUS

8/24/2012

REPORTING REQUIREMENTS

7/1/2017

ECONOMIC NEXUS

10/1/2018see state notice

MARKETPLACE NEXUS

1/1/2019

Annual Back to School Holiday

July 19-21, 2024

1. Clothing – $100 or less per article (excluding accessories and protective or recreational equipment)
2. Single purchases ($750 or less) of computers, computer software, and school computer supplies (excluding purchases for commercial use)
3. Noncommercial school supplies – $50 or less per item
4. Noncommercial purchases of books – $30 or less per item

Note: not all counties and municipalities are participating in the sales tax holiday. Click here to view an updated chart listing participation.

Annual Severe Weather Holiday

February 23-25, 2024

Severe weather preparedness items – $60 or less per item, except for generators and power cords, which are covered so long as they cost $1,000 or less. Note: not all counties and municipalities are participating in the sales tax holiday. Click here to view an updated chart listing participation.

Status

Inactive

Amnesty Filing Dates

June 30, 2016 - August 30, 2016

Go to Alabama Amnesty Page
AMNESTY INCLUSION PERIODS

Taxes due prior to January 1, 2015 or taxes for taxable periods that began before January 1, 2015 are eligible.

TAX TYPES AND CONDITIONS

All taxes administered by the Alabama Department of Revenue, except for motor fuel taxes and certain penalties

AMNESTY BENEFITS

50% of interest and all penalties waived.

Status

Inactive

Amnesty Filing Dates

July 1, 2018 - September 30, 2018

Go to Alabama Amnesty Page
AMNESTY INCLUSION PERIODS

Taxes due prior to January 1, 2017 and taxes for taxable periods that began before January 1, 2017.

TAX TYPES AND CONDITIONS

All taxes administered by the Alabama Department of Revenue except for motor fuel, motor vehicle, and property taxes.

AMNESTY BENEFITS

Waiver of penalties and interest. However, penalties may be imposed for reasons such as failing to comply with the amnesty provisions, providing false or fraudulent information, and/or cost of collection penalties.

Status

Active

Amnesty Filing Dates

Amnesty is provided to any eligible seller who applies and is accepted to participate in the Simplified Seller’s Use Tax (SSUT) Program

Go to Alabama Amnesty Page
AMNESTY INCLUSION PERIODS

Periods preceding October 1, 2019

TAX TYPES AND CONDITIONS

Simplified sellers use tax. Seller must apply for and be accepted into SSUT program. Amnesty isn’t available to any eligible seller who has received notice of an audit and the audit is not yet resolved.  Amnesty only applies to retailers responsible for collection of the tax and not for purchasers subject to consumer’s use tax.

AMNESTY BENEFITS

Waiver of penalties and interest, and no class action may be brought against an eligible seller in any court of this state on behalf of customers for an overpayment of simplified sellers use tax.

Administration Information
Streamlined Sales Tax Status

Advisory State

NUMBER OF TAXING AUTHORITIES

801 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

Yes – Combination; some are state administered

Sales Tax Sourcing (Intrastate)

Destination

Sales Tax Return Due Date

The 20th of the month following the reporting period

Exemption Information
RESALE CERTIFICATE

Alabama Resale Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: prescription drugs, gasoline and motor oil, fertilizer, seeds, livestock feed, labor to repair or install property if billed separately

 

Entity types of exemptions:  sales to the government, schools, city and county owned hospitals, and specific nonprofits,

 

Alabama Exemption Certificate Forms

State Links
History & Fun Facts
HISTORY

Alabama enacted its sales and use tax in 1936. It was re-enacted twice, once in 1939 and again in 1959.

FUN FACTS
  • Alabama is one of the five states with the highest combined state and local tax rates in 2022, at 9.24%.

Alabama Department of Revenue Announces Change in Tax Payment Processing

The Alabama Department of Revenue is changing banks, affecting how taxes are paid through My Alabama Taxes using accounts that employ a debit block requiring an Originating Company ID (debit block code) for ACH debits.

Key Sales Tax Updates Affecting the Southeastern United States

Picture this: an evolving sales tax landscape throughout the United States where sales tax rules resemble a puzzle, and being up to date on the Southeast region is the missing piece for compliance success.

Taxpayer Challenges Audit Assessment in Alabama

An audit assessment issued to an Alabama taxpayer was largely upheld upon challenge, with several adjustments being made upon review by the Alabama Tax Tribunal.

Alabama Tax Tribunal Upholds Fraud Penalties in Recordkeeping Case

The Alabama Tax Tribunal ruled against a taxpayer\’s audit appeal and affirmed both the Department of Revenue\’s assessment of additional tax due and the fraud penalty that was assessed on the basis of the taxpayer\’s underreporting of sales and inconsistent records.

Alabama Lowers Sales Tax Rate on Food Effective September 1, 2023

Effective September 1, 2023, Alabama’s state-level sales and use tax rate on food for home consumption decreases from 4% to 3%.

Alabama Extends Filing Deadline for Taxpayers in Declared Disaster Areas

The Alabama Department of Revenue (ALDOR) is offering tax relief to Alabama taxpayers who reside or have a business in federally declared disaster areas in Alabama where damage was caused by severe weather in January.

Antimicrobial Agents Did Not Qualify for Wholesale Exemption in Alabama

A taxpayer that operates a poultry processing plant in Alabama was not entitled to a refund of sales and use tax paid on purchases of antimicrobial agents since it failed to prove that the purchases were non-taxable as a “wholesale sale.”

Audit Assessment in Alabama Upheld due to Failure to Maintain Records

The Alabama Tax Tribunal affirmed that a convenience store operator (taxpayer) was properly assessed sales and use tax and fraud penalties under audit.

Alabama Denies Exemption Certificate For Contractor After Completion of Government Project

An electrical subcontractor working on a project for the University of Alabama was denied their request for a sales and use exemption certificate by the Alabama Tax Tribunal.

Certain Agricultural Products Exempt from Sales and Use Tax in Alabama

The governor of Alabama, Kav Ivey (R) recently signed various bills applying to tax relief, one including agricultural products being exempt from sales and use tax under certain circumstances.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Alabama Manufacturer Requests Reduced Machine Rate

An Alabama taxpayer that manufactures rockets requested a partial sales tax refund for tax paid on helium and nitrogen.

State Sales Tax Rates

This chart lists the standard state level sales and use tax rates. The range of local taxes is also included as a quick reference. Chart is updated monthly.

Alabama Blocks City Tax on Railway Fuel Purchases

BNSF Railway Company is receiving a $1.25 million diesel fuel tax refund from the City of Birmingham, Alabama.

How Home Rule States Have Responded to Wayfair

Let’s take a look at three of the primary home rule states that also have a state-wide sales tax—Alabama, Colorado, and Louisiana—to understand steps taken what remote out-of-state sellers can expect.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Sales Tax Holiday Season is Here

With sales tax holiday season right around the corner, now is a good time to look at how sales tax holidays work and examine the different types of holidays that states offer.

Three Years of South Dakota v. Wayfair: Local Tax Issues

Learn why managing local taxes is such a large challenge for taxpayers post-Wayfair and about local efforts to simplify compliance. This is part 4 of our 5 part series on three years of the Wayfair decision.

Post-Wayfair Remote Seller Nexus: What’s Going on in the Southeast?

Like the rest of the country, the Southeast region of the U.S. is not immune to the changes created by the South Dakota v. Wayfair decision. In fact, 2020 presented a slew of changes in the southeast that have big…

Alabama Tax Licenses Must Be Renewed Annually

Effective November 1, 2020, taxpayers are required to renew their Alabama tax licenses on an annual basis.

Membership Fees Not Taxable as Lump-Sum Admission Fees in Alabama

A taxpayer’s charges for annual and family memberships constituted exempt membership dues and not taxable lump-sum admissions fees in Alabama.

Alabama Denies Taxpayer Appeal Since Tax Assessment Was Not Final

A taxpayer’s Alabama sales and use tax appeal was denied since a final assessment had not been entered against the taxpayer.

Sales of Coffee and Tea Brewing Equipment Qualify for Reduced Manufacturing Rate in Alabama

A manufacturer’s sales of coffee and brewing equipment were subject to Alabama’s reduced sales and use tax rate since the products qualify as machines used to process tangible personal property.

Total Amount of Bundled Transaction Subject to Tax in Alabama

The Alabama Department of Revenue has issued a revenue ruling providing guidance on the application of sales and use tax to bundled transactions.