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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 Sales Tax Rates
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.
Remote Seller Nexus Rules
AFFILIATE NEXUS

8/24/2012
REPORTING REQUIREMENTS

7/1/2017
ECONOMIC NEXUS

10/1/2018 – see state notice
MARKETPLACE NEXUS

1/1/2019
Sales Tax Holidays
Severe Weather Sales Tax Holiday

February 20, 2026 - February 22, 2026

No state sales or use tax is due on certain items you may purchase to deal with severe weather (Act 2012-256, Rule 810-6-3-.66). See here for the counties and municipalities that have notified ALDOR of their decision to participate or not participate in the holiday.
Back to School Sales Tax Holiday

July 17, 2026 - July 19, 2026

1. Clothing for $156 or less per article
2. Computers, computer software, and school computer supplies with sales price of $1,173 or less
3. Books with a sales price of $47 or less
4. School supplies, school art supplies, and school instructional material with sales price of $78 or less
Click here for a quick reference sheet of exempt items.
Grocery Tax Holiday

May 1, 2026 – June 30, 2026

Removes the 2% state-level sales tax on food. The suspension applies only to the state portion, meaning local city/county taxes may still apply. For more information, click here.
Sales Tax Amnesty
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
State Tax Web Page

Alabama Department of Revenue
Rate Look-Up Page

Alabama Sales Tax Rate Look-Up
Registration Link

Register for Alabama Sales Tax
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 to Temporarily Eliminate State Sales Tax on Groceries

Starting May 1 through June 30, 2026, Alabama will temporarily remove the state sales tax on most food items. The temporary tax break comes as part of Act 2026-604, which removes the state sales and use tax on qualifying food…

Alabama Reduced Machine Rate Applied to Propane and Oxygen Purchases to Process Metal

The Alabama Tax Tribunal ruled that propane and liquid oxygen used in cutting metal qualify for the reduced 1.5% machine rate under state sales and use tax laws. Get the key takeaways and what this means for manufacturers and processors.

Alabama Tax Tribunal Rules Private Waste Treatment Facility is Entitled to Exemptions

The Alabama Tax Tribunal ruled that certain private waste treatment facilities qualify for state sales and use tax exemptions under the pollution‑control exemption. Learn which equipment and purchases are now tax‑exempt and how facilities can claim the savings.

Alabama Reduced Manufacturing Sales Tax Rate Denied for Wet Yard Equipment

Alabama’s Department of Revenue rejects the use of the 1.5% manufacturing tax rate for “wet‑yard” equipment used outdoors. Learn why the reduced rate doesn’t apply and how to determine eligibility for manufacturing exemptions.

Back to School and Back to Sales Tax Holidays: A Quick History Lesson

Discover the history of back-to-school sales tax holidays and how they became a key tax break for shoppers. Learn when and why states adopted these popular events.

Alabama Authorizes Local Governments to Opt Out of New Sales Tax Exemptions

A new Alabama law lets local governments opt out of certain state sales tax exemptions. Learn how this affects exemption consistency and local sales tax compliance.

Alabama Passes Sales Tax Exemption for Menstrual and Maternity Products

Alabama now exempts menstrual and maternity products from sales tax. Learn which items qualify, when the change takes effect, and what it means for buyers.

Alabama Tax Certificates of Exemption for Governmental/Statutorily Exempt Entity Projects

Alabama Tax Certificates of Exemption for Governmental/Statutorily Exempt Entity Projects

Alabama Department of Revenue Begins Administering and Collecting Tuskegee Local Tax

Effective March 1, 2024, the Alabama Department of Revenue (DOR) begins administering local sales, use, rental and lodging taxes for the City of Tuskegee.

Alabama Updates Rules for Contractors and Subcontractors

Effective February 12, 2024, under the amended Reg. 810-6-3-.77, Alabama contractors and subcontractors saw changes to their requirements.

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.