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% – 8.5% 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 20-22, 2018

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, 2018

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

Alabama Issues Notice on Changes to Simplified Sellers Use Tax Law

Effective July 1, 2017, the Alabama Department of Revenue can initiate monthly distributions of the Simplified Sellers Use Tax collections to the localities, and disclose names of eligible sellers.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Alabama Enacts Use Tax Notice and Reporting Requirements Legislation

On March 22, 2017, the Alabama Department of Revenue was authorized to require non-collecting remote sellers to remote Alabama sales to the DOR and notify Alabama customers of their use tax obligations.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Out of State Book Retailer Subject to Use Tax in Alabama

Alabama held that an out-of-state retailer that sold books and educational materials was subject to Alabama use tax since the taxpayer had sufficient contacts or nexus in Alabama to require it to collect, report, and remit use tax.

Freight and Transportation Charges Paid by Purchaser Not Taxable in Alabama

Alabama held that freight and transportation charges paid by purchaser were not subject to sales tax. More…

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…