Montgomery Sales Tax Guide 2025 (Alabama)
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This 2025 guide to Montgomery sales tax breaks down important sales tax rates, exemptions, and filing deadlines for Alabama businesses selling in Montgomery or out-of-state businesses selling to customers in Montgomery.
For more general info on Alabama sales tax, take a look at our 2025 Alabama Sales Tax Guide.
Montgomery Sales Tax Rate (Alabama)
In 2025, Montgomery, Alabama, imposes a total sales tax rate of 10%, comprising state, county, and city taxes. However, certain areas within Montgomery may have additional special taxing districts, leading to variations in the total sales tax rates.
| Tax Component | Rate |
|---|---|
| Alabama State Tax | 4.00% |
| Montgomery County Tax | 2.50% |
| Montgomery City Tax | 3.50% |
| Total Sales Tax Rate | 10.00% |
For the most accurate and up-to-date information, consider using Kintsugi's sales tax automation platform and integrations or consult the Alabama Department of Revenue or the City of Montgomery's official website.
To learn more about Alabama sales tax on SaaS and digital products, take a look at Kintsugi's easy guide: What Is Alabama SaaS Sales Tax and Why Does It Matter for Businesses?.
Montgomery AL Sales Tax Calculator
A retailer in Montgomery, Alabama, sells an item priced at $500. The total sales tax rate is 10%, comprising state, county, and city taxes. A customer purchasing a $500 item in Montgomery would pay $50.00 in sales tax, bringing the final total price to $550.00.
| Tax Type | Rate | Calculation | Tax Amount |
|---|---|---|---|
| Alabama State Tax | 4.00% | $500 × 4.00% | $20.00 |
| Montgomery County Tax | 2.50% | $500 × 2.50% | $12.50 |
| Montgomery City Tax | 3.50% | $500 × 3.50% | $17.50 |
| Total Combined Tax | 10.00% | $20.00 + $12.50 + $17.50 | $50.00 |
| Final Total Price | $500 + $50.00 | $550.00 |
To learn more about Alabama sales tax exemptions, take a look at Kintsugi's easy guide: Alabama Sales Tax Exemption Rules and Benefits for Your Business.
FAQ
What is the City of Montgomery sales tax?
As of February 2025, the total sales tax rate for Montgomery, AL is 10%, comprising 4% state tax, 2.5% county tax, and 3.5% city tax.
How do you get a sales tax permit in Alabama?
Apply online through the Alabama Department of Revenue’s My Alabama Taxes (MAT) portal. You'll need business details, an EIN or SSN, and there is no registration fee.
When do I need to complete a sales tax registration in Alabama?
You must complete your sales tax registration before making taxable sales or meeting the economic nexus threshold ($250,000 in sales), and understanding current tax rates is essential during this process.
What is the sales tax nexus threshold in Alabama?
In Alabama, the economic nexus threshold is $250,000 in gross sales in the state within the current or previous calendar year, with no transaction threshold requirement.
Is Alabama part of the Streamlined Sales Tax (SST) program?
No, Alabama is not part of the Streamlined Sales Tax (SST) program. However, it offers the Simplified Sellers Use Tax (SSUT) program for remote sellers.
What is considered "tangible personal property” in Alabama?
In Alabama, tangible personal property includes a collection of physical items that can be seen, weighed, measured, or touched, such as furniture, electronics, clothing, and vehicles. Digital goods may also be taxable.
When do I need to file sales tax returns in Alabama?
In Alabama, sales tax returns are due monthly, quarterly, or annually, based on sales volume, and utilizing a sales tax calculator can help ensure accurate calculations. Monthly returns are due by the 20th of the following month.
Montgomery Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Montgomery?
Sales tax collection in Montgomery is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Montgomery.
2. Economic Nexus: Out-of-state businesses exceeding $250,000 + Special Activities in Alabama.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Montgomery?
In Montgomery, Alabama, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Raw Materials, General Occasional Sales, Motor Vehicles Occasional Sales, General Optional Maintenance Contracts. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Montgomery
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://www.revenue.alabama.gov/sales-use/sales-tax.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://www.revenue.alabama.gov/sales-use/sales-tax by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Montgomery often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
Ready to Simplify Sales Tax Compliance in Montgomery?
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
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Find Sales Tax Information for Other Cities in Alabama
Looking for sales tax rates and compliance details for other cities in Alabama? Check out our comprehensive table of sales tax information for cities across the state in the table below
| City | Sales tax rate |
|---|---|
| Troy | 9.50% |
| Tuskegee | 11.50% |
| Tuskegee Institute | 11.50% |
| Union Springs | 10.00% |
| Verbena | 8.00% |
| Wetumpka | 9.00% |
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