Alabama sales tax is filed online through My Alabama Taxes (MAT), the Alabama Department of Revenue's e-filing portal, and returns are due on the 20th day of the month after the reporting period. Filing is monthly unless the Department has approved a less frequent schedule, and a return is required even when there was no activity. The Department requires business taxpayers to file sales tax returns electronically.
This guide covers who files and how often, how to file in My Alabama Taxes, how Alabama's local taxes and the Simplified Sellers Use Tax (SSUT) program fit in, how to report no sales, how to amend a return, how to pay, and what late filing costs.
This article is educational information, not tax advice. Filing rules, thresholds, and penalties can change, so confirm current requirements with the Alabama Department of Revenue before you file.
Alabama sales tax filing at a glance
- Who administers it: Alabama Department of Revenue, Sales and Use Tax Division.
- Online portal: My Alabama Taxes. Online filing through the Department's system is free.
- Return: Filed in My Alabama Taxes for each sales tax account. Remote sellers in the SSUT program file a separate Simplified Sellers Use Tax return.
- Filing frequency: Monthly by default. Quarterly, semiannual, and annual filing can be requested if you meet the liability tests below.
- Due dates: The 20th of the month after the reporting period. Annual returns are due January 20 of the following year.
- Zero returns: Required every period.
- Payment: ACH debit in My Alabama Taxes, ACH credit with prior approval, or check where electronic payment is not required. Payments of $750 or more must be electronic.
- Economic nexus: Remote sellers with more than $250,000 in retail sales into Alabama in the previous calendar year.
Who has to file, and how often
Businesses that make retail sales of tangible personal property in Alabama register with the Department and file sales tax returns. The Department describes sales tax as a privilege tax collected by the seller from the customer and remitted to the state. Our Alabama sales tax guide covers registration and nexus in more detail. If you sell software, see our post on Alabama SaaS sales tax.
For sellers with no physical presence in Alabama, the Department says a remote seller with total retail sales, taxable and nontaxable, into Alabama above $250,000 in the previous calendar year must collect and remit Alabama tax. It can do so through the Simplified Sellers Use Tax program, which uses a flat 8% rate, or under Alabama's traditional state and local use tax rules. Remote sellers below the threshold may also apply to join SSUT. The threshold calculation counts retail sales made directly by the seller and leaves out wholesale sales where the buyer gave an Alabama sales tax license or resale certificate, and sales through an SSUT participating marketplace that collects Alabama tax.
Alabama sales tax is due monthly. Under Section 40-23-7, Code of Alabama, you can request a less frequent schedule based on your prior-year tax liability:
| Frequency | You may request it if | Due date |
|---|---|---|
| Monthly | Default | The 20th of the month after the month of sales |
| Quarterly | Liability under $2,400 for the preceding calendar year | The 20th of the month after the quarter (April 20 for the first quarter) |
| Semiannual | Liability under $1,200, or sales in no more than two 30-consecutive-day periods, in the preceding calendar year | July 20 and January 20 |
| Annual | Liability under $600, or sales in no more than one 30-consecutive-day period, in the preceding calendar year | January 20 of the following year |
Changes to your filing status can be requested only once a year, before February 20, to apply to that calendar year. SSUT returns can only be filed monthly.
Before you start: get into My Alabama Taxes
You need a tax account number with the Department before you can file. On the My Alabama Taxes logon window, use the "Register a business/Obtain a new tax account number" link in the Businesses section and choose the account type you need. If you are already a registered Alabama taxpayer, you enter your taxpayer ID, E-file sign-on ID, and E-file access code. If you have never registered, or you need your sign-on ID and access code again, the Department can mail them to the address it has on file. Our sales tax permit overview explains the wider registration process.
In Alabama, a resale certificate is officially called a Sales Tax License, and you can print a copy from your tax account in MAT. For wholesale sales, see our Alabama resale certificate guide for what to collect from buyers.
Before filing, gather your sales for the period, your exempt and wholesale sales with the supporting certificates, and your sales by city and county so you can report local taxes.
Step-by-step: filing an Alabama return in My Alabama Taxes
- Log in to My Alabama Taxes and locate your sales tax account.
- Open the return. Click "File or view a return" and select the period you are filing.
- Enter your sales and any exempt or wholesale amounts. Report withdrawals, meaning items bought tax-free for resale that you took out of inventory for your own use, as taxable.
- File your local returns. Local sales tax is reported for each city and county. My Alabama Taxes, through the ONE SPOT program, lets you file state-administered and many non-state administered local returns from one login.
- Submit the return. After submitting, you are taken to a confirmation page.
- Pay. Click "Yes, Make EFT Payment," choose a payment date if you are filing early, choose checking or savings, and enter your bank routing and account numbers. Submit, enter your system password, and save the 10-digit confirmation number.
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Local taxes, ONE SPOT, and rate pitfalls
Alabama has state sales tax plus local sales taxes that vary by city and county. The Department says it administers more than 200 city and county sales taxes, but not all of them, and advises businesses to contact every county and municipality where they do business to learn whether they must register with the locality. State-administered local returns are filed with the Department in My Alabama Taxes. Non-state administered local returns filed through My Alabama Taxes and ONE SPOT require an electronic payment, and the return and payment are sent to the local government or its tax administrator.
The Department publishes a local tax rate search and a local cities and counties tax rates text file. Our Alabama sales tax calculator shows rates by location. Using one rate for every sale leads to under- or over-collection, so check the rate for each place you sell.
Remote sellers in the SSUT program are different. The 8% flat tax applies to all sales regardless of the Alabama locality shipped to, and the Department says the collection of SSUT relieves the seller and purchaser from any additional state and local sales or use tax on that transaction.
Due dates and the weekend rule
Returns and remittances are due on or before the 20th day of the month after the period. You can see Alabama alongside other states on our Alabama sales tax due dates page:
| Period | Due date |
|---|---|
| Monthly | The 20th of the following month (January sales are due February 20) |
| Quarter 1 (January to March) | April 20 |
| Semiannual period 1 (January to June) | July 20 |
| Semiannual period 2 (July to December) | January 20 |
| Annual | January 20 of the following year |
The Department says that if the due date falls on a weekend or holiday, the return must be submitted electronically or postmarked on or before the next working day. Electronic payment information must be transmitted by 4 p.m. Central time on or before the due date to be considered timely paid.
Filing a zero return
You must file even if you had no activity. The Department's due date calendar states that even if there is no activity during the period, a return must be filed, and late returns are subject to the failure to timely file penalty. The Department's pages we reviewed do not describe the exact screens for a zero return, so confirm the steps in My Alabama Taxes or with the Department.
Amending a return
If you find an error on a return you already filed, the Department says to amend it. For a state return, you can do this in My Alabama Taxes:
- Locate the tax account and click "File or view a return."
- Find the period and click "View or Amend Return."
- Click "Amend Return," enter the correct information, and submit.
The amended return shows the total amount due without considering what you already paid, and the amount on the payment page is editable. If you owe more, deduct what you previously paid for that period before you pay. If you overpaid, a credit should post to the account in a few days.
For a state-administered local return, the Department says to use a copy of your original return or call 334-242-1490 for a blank one, mark it "AMENDED," write the confirmation number of the original return on it, and mail it with any additional tax, penalty, and interest. For a non-state administered local return filed through My Alabama Taxes, contact the locality's administrator for instructions.
Payment methods
- ACH debit: Made in My Alabama Taxes together with the return. There is no pre-registration, and if you file early you can schedule the payment for the due date.
- ACH credit: Requires pre-registration and Department approval. You initiate the payment through your bank, separate from filing the return, and you must give a business reason for using it instead of ACH debit.
- Check: Allowed only where electronic payment is not required. Mail it to the Sales & Use Tax Division at P.O. Box 327790, Montgomery, AL 36132-7790, with your account number, filing period, and confirmation number.
State law requires a business taxpayer to pay electronically whenever a payment to the Department is $750 or more. Electronic payment information must be transmitted by 4 p.m. Central time on the due date. If your bank uses a debit block, give it the Department's originating company ID for state and state-administered local payments (MAT6045055), because rejected payments can lead to late payment penalties and interest.
The timely payment discount
The Department's sales tax FAQ says a discount is allowed if the tax is paid before the 20th of the month in which it is due. It consists of 5% of the first $100 of tax due and 2% of tax over $100, not to exceed $400. The Department says the discount for state-administered local sales tax is the same, and non-state administered local taxes filed through ONE SPOT may use a different discount rate. SSUT participants may retain a 2% discount on timely SSUT, capped at $8,000 per month. Other Department pages may describe the discount differently, so confirm the amount that applies to your account in My Alabama Taxes.
Penalties and interest for late payment
Returns filed after the due date are subject to a failure to timely file penalty equal to the greater of 10% of the tax required to be paid on the return or $50. Payments received after the due date are subject to a failure to timely pay penalty of 10% of the delinquent tax. If tax is not timely paid, interest is also due at the rate established by the Secretary of the Treasury under 26 U.S.C. 6621, and the Department points to its interest rates page for the current rate.
To ask for a penalty waiver, log in to My Alabama Taxes, click the applicable tax account, and use the "Ask a question" link in the "I want to" section. You must give a valid explanation of why you are asking, and an agent will review your account and reply.
Common mistakes to avoid
- Skipping zero returns. A return is required even with no activity.
- Paying after 4 p.m. Central on the due date. Late electronic payment information is not timely paid.
- Ignoring local taxes. Not every locality is state-administered, so contact each county and city where you do business.
- Using one rate for every sale. Local rates vary by city and county.
- Forgetting the $750 rule. Payments of $750 or more must be made electronically.
- Missing the February 20 deadline. Requests to change filing frequency are only accepted before February 20 each year.
- Mailing a paper return. Business taxpayers must file electronically in My Alabama Taxes.
If you receive a sales tax notice
A missed or late return often leads to a letter. Our Alabama sales tax notices guide explains what notices from the Alabama Department of Revenue mean, why businesses usually receive them, and what to do next. It also points to how to ask for penalty relief where the state publishes a process. Check the date on the notice, match it to your filing period, and follow the instructions on the notice itself.
More state filing guides
Filing in more than one state? These step-by-step guides cover the portals, due dates, and penalties in other states. See them all in our state-by-state guide to filing sales tax online.
- How to file Georgia sales tax online
- How to file Tennessee sales tax online
- How to file Mississippi sales tax online
Let Kintsugi file for you
If you sell in Alabama and other states, Kintsugi's sales tax filing software prepares and files returns on each state's assigned schedule and remits payment. Monitoring across every US state is free, so you know when you cross a threshold. Filing starts at $75 per filing, with no per-state subscription. See pricing, start free, or book a demo.
Frequently asked questions
Can I file Alabama sales tax online for free?
Yes. The Department says online filing through its filing and payment system is free of charge, and business taxpayers are required to file electronically through My Alabama Taxes.
When is Alabama sales tax due?
The 20th of the month after the reporting period. Monthly returns are due the 20th of the following month, and annual returns are due January 20. If the 20th falls on a weekend or holiday, the due date is the next working day.
Do I have to file if I had no sales?
Yes. The Department says a return must be filed even if there is no activity during the period, and late returns are subject to a penalty of the greater of 10% of the tax or $50.
What is the economic nexus threshold in Alabama?
For remote sellers, more than $250,000 in total retail sales into Alabama in the previous calendar year, counting taxable and nontaxable sales made directly by the seller. Remote sellers can meet the obligation through the Simplified Sellers Use Tax program or Alabama's traditional use tax rules.
Do I file local sales tax with the state?
For localities the Department administers, yes, through My Alabama Taxes. The Department does not administer every city and county tax, so contact each locality where you do business. Many non-state administered local returns can also be filed through My Alabama Taxes using ONE SPOT.
What if I miss the deadline?
File and pay as soon as possible. Penalties are the greater of 10% or $50 for late filing and 10% of the delinquent tax for late payment, plus interest, and you can ask for a penalty waiver through My Alabama Taxes.
Sources
Checked September 29, 2026.
- Alabama Department of Revenue, Sales Tax
- Alabama Department of Revenue, When is the sales tax due?
- Alabama Department of Revenue, Due Date Calendar for Taxes
- Alabama Department of Revenue, Is there a penalty imposed for not timely filing and paying the sales tax due?
- Alabama Department of Revenue, How do I request a waiver of a penalty on a tax return filed after the due date?
- Alabama Department of Revenue, How do I amend a return?
- Alabama Department of Revenue, E-Filing, Payments and Assistance
- Alabama Department of Revenue, ONE SPOT and ONE SPOT Filing through My Alabama Taxes
- Alabama Department of Revenue, EFT Threshold of $750
- Alabama Department of Revenue, Local Sales Tax
- Alabama Department of Revenue, Simplified Sellers Use Tax (SSUT)
- Alabama Department of Revenue, What is the effect of the Wayfair decision?
- Alabama Department of Revenue, Are all remote sellers required to register in Alabama?
