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


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.






10/1/2018see state notice



Annual Back to School Holiday

July 16-18, 2021

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 26-28, 2021

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.



Amnesty Filing Dates

June 30, 2016 - August 30, 2016

Go to Alabama Amnesty Page

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


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


50% of interest and all penalties waived.



Amnesty Filing Dates

July 1, 2018 - September 30, 2018

Go to Alabama Amnesty Page

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


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


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.



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

Periods preceding October 1, 2019


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.


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


801 Sales Tax Jurisdictions


Yes – Combination; some are state administered

Sales Tax Sourcing (Intrastate)


Sales Tax Return Due Date

The 20th of the month following the reporting period

Exemption Information

Alabama Resale Certificate


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

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

  • Alabama was one of the five states with the highest combined state and local tax rates in 2018, at 9.10%.

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.

Economic Nexus State Guide

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.

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.

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.

Alabama Supreme Court Holds That All Computer Software is Taxable

The Alabama Supreme Court held that all software, including custom software created for a particular user, is “tangible personal property” and therefore taxable.

Alabama Updates Amnesty Provisions for Eligible Sellers in Simplified Sellers Use Tax Remittance Program

Alabama has codified a new amnesty period for eligible sellers in the state’s Simplified Sellers Use Tax Remittance Program for periods before October 1, 2019.

October 1, 2018 Remote Seller Deadline for Multiple States

The October 1, 2018 remote seller compliance deadline is approaching for a number of states. Click on the links below for our previous news items with more details. Alabama Enacts Economic Nexus Provision Illinois Enacts Economic Nexus Legislation Indiana Enacts…

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

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.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

Alabama Enacts Marketplace Nexus Provisions

Alabama has enacted legislation containing marketplace nexus provisions, effective January 1, 2019.

2018 Tax Holidays Chart

We update our Sales Tax Holidays Chart regularly. Information is updated as states announce dates and participation. On the chart, you can find sales tax holidays by state and get additional details including the tax holiday dates, the type of…

Alabama Enacts Changes to Administration and Collection of Local Taxes

Alabama has amended provisions relating to the administration and collection of local sales, use, rental, and lodging taxes.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Alabama Enacts 2018 Tax Amnesty Program

Alabama has enacted a tax amnesty program that will take place July 1, 2018 through September 30, 2018.

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.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.