Alabama Sales Tax Guide: Rate, Rules & Filing
The Alabama state sales tax rate is 4%; combined rates with local taxes range from 5% to 13%, most commonly 10% (as of October 2026).
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What is the sales tax rate in Alabama?
The Alabama state sales tax rate is 4%; combined rates with local taxes range from 5% to 13%, most commonly 10% (as of October 2026).
- State rate
- 4%
- Most common
- 10%
- Combined rates
- 5%–13%
- Rates as of
- October 2026
Most common is the combined rate found in the most ZIP codes. Source: Kintsugi's rate table, updated monthly. Official source: Alabama DOR — State Sales & Use Tax Rates.
Do I need an Alabama sales tax permit?
You need one once you have nexus in Alabama, from a physical presence or from sales. Alabama economic nexus applies once your retail sales into the state exceed $250,000 in the previous calendar year, a higher threshold than most states. Nexus and registration rules
When is Alabama sales tax due?
Alabama assigns monthly, quarterly, or annual filing based on tax volume. Returns are due the 20th of the month following the reporting period, filed through My Alabama Taxes. Filing frequency and deadlines
Key Takeaways
Alabama's state sales tax rate is 4%, and local city and county taxes push combined rates to about 10% in major cities; remote sellers can instead collect a flat 8% through the Simplified Sellers Use Tax (SSUT) program [1][2]. You have economic nexus once retail sales into Alabama exceed $250,000 in the prior calendar year, with no transaction-count trigger [2]. SaaS is not taxable in Alabama, and groceries are taxed at a reduced 2% state rate as of September 1, 2025 [1]. A final assessment must be appealed within 60 days to the Alabama Tax Tribunal [6].
What is taxable in Alabama?
SaaS
Exempt
Clothing
Taxable
Groceries
Taxable
Digital Goods
N/A
What are the sales tax rates in Alabama?
Alabama levies a 4% state sales and use tax. City and county taxes are high, pushing combined rates to about 10% in major cities and over 11% in a few places. Remote sellers can avoid the local-rate complexity by enrolling in the Simplified Sellers Use Tax (SSUT) program and collecting a flat 8%.
Component | Rate | Scope |
|---|---|---|
State | 4.00% | Statewide |
Local (city + county) | up to ~7% | Varies by location |
Combined | 4.00%–~11% | Varies by location |
SSUT (remote sellers) | 8.00% | Flat, optional |
To find the combined rate for a specific address, use our US sales tax calculator.
What are the sales tax rates by county in Alabama?
The combined rate is the 4% state rate plus any county, city and special district taxes. The range covers every ZIP code in the county, and the most common rate is the one found in the most of them. Select a column heading to sort, or look up an exact address with the sales tax calculator.
Rates as of 67 counties with a local tax
| Autauga County | 2.5% | 5%–10.5% | 10% | 4 |
|---|---|---|---|---|
| Baldwin County | 3% | 7%–11% | 10% | 15 |
| Barbour County | 1.5% | 9.5% | 9.5% | 4 |
| Bibb County | 4% | 8%–10% | 10% | 3 |
| Blount County | 3% | 9%–10% | 9% | 8 |
| Bullock County | 2.5% | 8.75%–10% | 8.75% | 3 |
| Butler County | 1.5% | 5.5%–11% | 5.5% | 3 |
| Calhoun County | 1% | 7%–10% | 10% | 9 |
| Chambers County | 6% | 10% | 10% | 1 |
| Cherokee County | 3.5% | 7.5%–10% | 10% | 4 |
| Chilton County | 3% | 8%–11% | 10% | 5 |
| Choctaw County | 3% | 7%–11% | 10% | 7 |
| Clarke County | 1% | 5%–10% | 10% | 6 |
| Clay County | 2% | 6%–9.5% | 6% | 3 |
| Cleburne County | 2% | 6%–9% | 9% | 4 |
Places are the post-office towns of the ZIP codes, so a large city can count more than once. A ZIP code can cross a city or district line, so confirm the rate for the exact address. Source: Kintsugi's rate table, updated monthly from state and local rate data.
What is the sales tax registration and nexus threshold in Alabama?
Alabama economic nexus applies once your retail sales into the state exceed $250,000 in the previous calendar year, a higher threshold than most states. There is no transaction-count trigger. Physical presence creates nexus immediately.
What is the marketplace facilitator law in Alabama?
Alabama's marketplace-facilitator collection requirement took effect January 1, 2019, under Act 2018-539 and its implementing rules, administered through the Simplified Sellers Use Tax (SSUT) program. A marketplace facilitator with $250,000 or more in retail sales into Alabama in the preceding 12 months — combining its own direct sales with sales made through its marketplace by marketplace sellers — must either register to collect and remit the flat 8% SSUT on those sales or comply with notice-and-reporting requirements instead. Sales made through a participating facilitator that collects SSUT are excluded from the marketplace seller's own $250,000 threshold calculation, though sellers remain responsible for tax on their own direct sales and on sales made through non-participating facilitators.[8]
What are the sales tax filing frequencies and deadlines in Alabama?
Alabama assigns monthly, quarterly, or annual filing based on tax volume. Returns are due the 20th of the month following the reporting period, filed through My Alabama Taxes. SSUT returns follow the same monthly schedule. For the portal, return, and step-by-step, see our guide to filing Alabama sales tax online.
What is exempt from sales tax in Alabama?
Alabama taxes groceries at a reduced state rate (cut to 2% in September 2025), though local taxes may still apply. Prescription drugs are exempt. SaaS is not taxable in Alabama.
How do resale and exemption certificates work in Alabama?
Alabama issues a certificate of exemption for qualifying resale and exempt purchases, applied for on Form ST: EX-A1 [5]. Unlike many states, the certificate is valid for only one year and must be renewed annually before the end of its expiration month [5]. A seller who accepts a valid certificate in good faith is relieved of tax on that sale [5].
For the official form, multistate certificate rules and expiry, see the Alabama resale certificate guide.
What are the sales tax penalties in Alabama?
Late filing or payment carries a penalty of 10% of the tax due (or $50 for a late return, whichever is greater), plus interest from the due date. Our Alabama filing guide lists late filing penalties, interest, and what to do if you missed a return.
How do sales tax audits and appeals work in Alabama?
After an audit, the Department of Revenue issues a final assessment for tax owed. You have 60 days from the date the final assessment is mailed or personally served to file a written notice of appeal with the independent Alabama Tax Tribunal [6]. Missing the 60-day window makes the assessment final [6].
Sources
[2] Alabama DOR — Simplified Sellers Use Tax (economic nexus, flat 8%)
[3] Alabama DOR — Rule 810-6-1-.37 (computer software taxable)
[5] Alabama DOR — Certificate of Exemption validity and renewal
[6] Alabama DOR — Appeal rights for a final assessment (60 days)
[8] Alabama Department of Revenue — Simplified Sellers Use Tax (SSUT)
Verified July 2026 against Alabama Department of Revenue published guidance.
More Alabama sales tax topics
Guides and tools for specific Alabama sales tax questions.
Frequently Asked Questions
Related Reading
US Sales Tax Calculator
Results
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This is an estimate based on location alone. The tax you owe also depends on what you sell, who you sell to and the exact delivery address. If you intend to rely on these rates, use the Kintsugi platform (opens in a new tab).