Sales Tax by State – Alabama

Alabama Sales Tax Fact Sheet

Last updated on: April 1, 2021

Alabama Sales Tax Rate Lookup by Address:

Use USgeocoder Sales Tax FREE Online Lookup Tool to search state-wide, county, city and special district sales tax rates and tax reporting details for any physical address and PO Box in State of Alabama.

Learn more about how sales and use tax works in Alabama

Alabama Sales tax components:
Statewide tax
Local district tax: County Tax + Municipality Tax (or Police Jurisdiction Tax)

Alabama Statewide Sales Tax Rate:
4.00%

Highest Total Local District Sales Tax Rate in Alabama:
8.50%

Highest Total Sales Tax Rate with Local District Sales Tax in Alabama:
12.50%

Incorporated city with the Highest Total Sales Tax Rate in Alabama:
Arab in Cullman County (12.50%)
Piedmont in Cherokee County (12.50%)

Number of Counties in  Alabama:
67

Number of Municipalities (Incorporated cities) in Alabama:
460

Special District Sales Tax in Alabama:
Police Jurisdiction Sales and Use tax

Learn more about Alabama Police Jurisdiction

Can I Use Zip Codes to Determine Correct Sales Tax Rates in Alabama?
Not recommended

Zip codes cross city boundaries. Different cities might have different local district rates. In addition, city taxes only apply to areas within the respective incorporated city. If an address is in an un-incorporated area, city taxes do not apply.

You should look for an address-based solution such as USgeocoder that can identify if the address is within an incorporated city to determine its sales tax rates in Alabama.

Learn more about how postal zip codes, mailing cities and incorporated cities work. 

Can I Use County and City to Determine Correct Sales Tax Rates in Alabama?
Not recommended

Many special districts are in unincorporated areas or in portions of respective counties or incorporated cities. County or city boundary lines do not accurately define such special district areas. In Alabama, some incorporated cities charge Police Jurisdiction sales and use tax. Police jurisdictions are within 1.5 miles or 3 miles from their city boundaries.

To find out the correct sales tax rate for a particular address in Alabama, try USgeocoder online tool to lookup its rates and taxing jurisdiction details.

Are Sales Tax Rates and Use Tax Rates the Same in Alabama?
Yes

Does Alabama Have Tax Codes for Tax Return Reporting Purpose?
Yes

Sales and Use Tax Rate Update Schedule in Alabama:
Update Frequency: Monthly
Last update: April 1, 2021

Does Alabama Have an Origin-Based or Destination-Based Sales Tax Collection?
Destination

Origin-based: sales tax is charged based on where the seller is located.
Destination-based: sales tax is charged based on where the buy is located

Is Alabama a Full Member of Streamlined State?
No

A streamlined Full Member State is a state that has been found to be in compliance with the Streamlined Sales and Use Tax Agreement (SSUTA) and its laws, rules, regulations, and policies and bring them into compliance are in effect. See details on Streamlined Sales Tax Governing Board’s website.

Does Alabama Have Sales Tax Holidays?
Yes: Back-to-School and Severe Weather Preparedness

Wayfair Sales Tax Implementation in Alabama:
Sales Thresholds: $250,000

Wayfair sales tax implementation applies to out-of-state sales, remote sales, Internet sales and online sales. See details on https://revenue.alabama.gov/2018/07/ador-announces-sales-and-use-tax-guidance-for-online-sellers/

Does Alabama Charge Sales Tax on Digital Goods?
Yes

Does Alabama Charge Sales Tax on Services?
Generally no.

Does Alabama Charge Sales Tax on Shipping?
If delivery is made by common carrier or the U.S. Postal Service, the transportation charges shall not be subject to sales or use tax if billed as a separate item and paid directly or indirectly by the purchaser.

Alabama State Sales and Use Tax Authority:
Alabama Department of Revenue
Website: Alabama Sales & Use Tax

Other Resources:

1. Alabama Sales and Use Tax Rules
2. Alabama Sales Tax Holidays
3. Sales and Use Tax FAQ by Alabama Department of Revenue
4. Local Sales and Use Tax Notice

Looking for an Online Solution that provides real-time sales tax rates for your application? 

Try USgeocoder API. It provides all the information you get from USgeocoder Live Demo.

USgeocoder live demo is free to use. You can use it to lookup sales tax rate information one address at a time. However if you have a large number of addresses and would like to save time, USgeocoder can do it for you through batch processing service.

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SALES TAX BY STATE

STATES WITH STATE AND LOCAL SALES TAX:
California, New York, Washington State, George, Colorado, Alabama

STATES WITH NO SALES TAX:
Delaware, Montana, New Hampshire, Oregon

STATES WITH ONLY STATE-WIDE SALES TAX AND NO LOCAL SALES TAX:
Connecticut (6.35%), District of Columbia (6.00%), Indiana (7.00%), Kentucky (6.00%), Maine (5.5%), Maryland (6.00%), Massachusetts (6.25%), Michigan (6.00%), New Jersey (6.625%), Rhode Island (7.00%)

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DISCLAIMERS:

SALES AND USE TAX INFORMATION ON THIS BLOG REFERS TO THE GENERAL SALES OF TANGIBLE PERSONAL PROPERTY. IN MANY STATES, THERE ARE DIFFERENT RATES FOR RENTAL, LEASING, AND TANGIBLE ITEMS SUCH AS VEHICLE, EQUIPMENT, FOOD, OR CLOTHING. SOME STATES HAVE DIFFERENT SALES TAX RATES THAN USE TAX RATES. EACH STATE HAS ITS OWN RULES ON EXEMPTIONS. PLEASE REFER TO THE SALES AND USE TAX LAW OF INDIVIDUAL STATES FOR DETAILS.

USGEOCODER LLC IS NOT ASSOCIATED WITH ANY GOVERNMENT AGENCIES IN ANY MANNER. ALL INFORMATION PROVIDED ON THIS WEBSITE IS PREPARED FOR GENERAL INFORMATIONAL PURPOSES ONLY. YOU SHOULD CONSULT YOUR OWN TAX, LEGAL AND ACCOUNTING ADVISORS TO ADDRESS YOUR SPECIFIC QUESTIONS AND BEFORE ENGAGING IN ANY TRANSACTION RELATED TO SALES AND USE TAX.