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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 Adopts Nexus Rule including Remote Affiliate Provisions

Out-of-state remote sellers with substantial nexus making retail sales of tangible personal property in Alabama are required to register with Alabama for a sales tax license and collect and remit sales tax on all sales made within the state, effective August 24, 2012

SST Governing Board Approves Origin-Sourcing Amendment

At a meeting on May 23-24, 2012, the Streamlined Sales Tax (SST) Governing Board voted to allow member states to apply origin-based sourcing to intrastate sales and discussed a number of other issues. The board approved an amendment to the…

U.S. Supreme Court Holds That 4-R Act Challenges Can be Based on Exemptions

The U.S. Supreme Court has held that a railroad may challenge Alabama sales and use taxes that apply to rail carrier’s purchases of diesel fuel but exempt those purchases by rail competitors such as interstate motor and water carriers, under…

Alabama Enacts Single Point of Filing Legislation

On May 3, 2012, Alabama Governor Robert Bentley signed into law S.B. 459, commonly referred to as the “ONE SPOT” bill. ONE SPOT stands for “Optional Network Election for Single Point Online Transactions.” Under the bill, businesses will have the…

Senate Introduces Marketplace Fairness Act

On November 9, 2011, a bi-partisan group of U.S. senators introduced legislation that would give states implementing simplification requirements the authority to require remote sellers to collect sales and use tax. The legislation, called the Marketplace Fairness Act, would not…

Congress Introduces Marketplace Equity Sales Tax Bill

A new online sales tax bill has been introduced in Congress. Contrary to the Main Street Fairness Act proposed this summer, participation in Streamlined Sales Tax is not required.

Main Street Fairness Act Introduced in Congress

Both houses of Congress introduced legislation on July 29, 2011 that would give member states of the Streamlined Sales and Use Tax (SST) Agreement to collect sales tax from remote sellers that do not qualify for the small-seller exception although…

Amnesty Chart

Updated regularly – awaiting legislation for additional programs which are added as enacted or announced: Click here for chart

U.S. House of Representatives Introduces Resolution Opposing Remote Collection Authority

The U.S. House of Representatives has introduced a resolution opposing any legislation that would grant state governments the authority to impose any sales tax collecting requirements on out-of-state small businesses that partake in online commerce. Introduced by Rep. Daniel Lungren,…

Mainstreet Fairness Act introduced in Federal Congress

On July 1, 2010, HR 5660 was introduced by Rep DeLaHunt from Massachusetts which would impose a sales and use tax collection responsibility on remote sales made into states that are full members of the Streamlined Sales Tax Agreement (SSUTA).…

Alabama Amends Rule on Exemption for Governmental Entities, Purchases Made by Purchasing Agents

The sales and use tax exemption rule on governmental entities and purchases made through purchasing agents has been amended. The rule is amended to include the ability to use Form ST:PAA-1, Purchasing Agent Appointment. This form will allow an exempt…

Charges for Deliveries Made by Common Carrier Taxable in Alabama

In an administrative law decision, a taxpayer\’s charges for deliveries made by common carrier were determined to be taxable.

Alabama Rules on Taxability of Paint Used on Government Aircraft

The Alabama Department of Revenue has ruled on a taxpayer’s claim that paint used on government aircraft was not subject to sales and use tax. The Department of Revenue disagreed with the taxpayer’s claim that the paint used on an…

Taxability of Cell Phone Discounts/Giveaways Varies by States

States vary on the treatment of cellular telephones and equipment when sold below cost and contingent on the purchase of airtime from a retailer or an independent carrier. It is a common practice for retailers to sell cellular phones for…

Alabama Trucking Company Held Liable for Tax on Construction Material Deliveries

A trucking company that contracted with customers to both furnish and deliver materials, was found to be reselling materials at retail. The trucking company contended that it was a construction contractor and that it correctly paid sales tax when it…

Alabama Announces Tax Amnesty Program

The Alabama Revenue Commissioner and State Governor announced a tax amnesty period from February 1, 2009 to May 15, 2009. The amnesty program, known as “Operation Clean Slate”, is for any outstanding taxes owed, including, but not limited to, sales…

Tickets Provided to Sponsors are Taxable in Alabama

In a recent hearing, Alabama court determined that tickets provided to sponsors in conjunction with sponsorships were subject to the gross receipts sales tax. The taxpayer conducted a wine tour that was open to the public. In addition to selling…

Seller Who Relied on Invalid Tax Certificate Not Liable in Alabama

An Alabama court determined that a taxpayer who relied on an invalid Uniform Multi-Jurisdiction Sales and Use Tax Certificate and sold repair parts tax-free to a service contractor was not subject to Alabama use tax on the sales because the…

Florida Provisions of Light Poles and Light Pole Fixtures Discussed

In response to a taxpayer\’s inquiry, the Florida Department of Revenue issued a Technical Assistance Advisement (\”TAA\”) clarifying three issues…

President Bush Signs Continuation of Ban on Internet Access Tax

On October 31, 2007, President Bush signed into law a seven-year extension of the moratorium on state and local taxes on internet access. The measure will amend the Internet Tax Freedom Act Amendments Act of 2007, includes a new definition…

Carbon Dioxide Used in Alabama Chicken Processing Plant Taxable

Alabama sales tax was due on carbon dioxide used in a chicken processing plant to cool the chicken immediately after it was cooked, so that it could be efficiently cut into pieces. Despite the fact that the carbon dioxide remained…

IRS Sales Tax Calculator Introduced

The Internal Revenue Service has introduced a new online tool – The Sales Tax Calculator – to help individual taxpayers determine the amount of optional general sales tax that they are eligible to claim on their tax return.

Alabama Adopts Permanent Sales Tax Holiday

Alabama has provided for an annual sales tax holiday beginning on the first Friday in August and ending the following Sunday. For 2007, the dates are August 3-5. The holiday covers articles of clothing selling for under $100., but does…

IRS Offers Standard Refunds for Wrongly Collected Long Distance Excise Tax

The IRS announced that any taxpayer who paid the long-distance telephone tax will get a refund on their 2006 federal income tax return.