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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 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.

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.

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.

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.