Alabama Sales Tax Rate Table

Alabama statewide sales tax rate: 4.00%. Local governments in Alabama may add their own sales tax on top of the state rate, so the total rate you charge depends on the address of the sale. Combined state and local rates average about 9.46%. Alabama’s sales tax is administered by the Alabama Department of Revenue.

Rates reviewed August 2026. State rates reflect statutory rates in effect as of July 1, 2026. Local rates change frequently — always confirm the rate for the exact delivery address before you file.

Alabama Sales Tax Rates at a Glance

Alabama sales tax rate summary — reviewed August 2026
Statewide sales tax rate4.00%
Local sales taxesYes — up to 8.00% additional
Average local rate5.46%
Average combined rate9.46%
Administered byAlabama Department of Revenue
Registration documentAlabama sales tax license
Rate data reviewedAugust 2026

How Local Sales Tax Works in Alabama

Alabama has one of the highest average local sales tax burdens in the country. Counties and municipalities each levy their own rate on top of the 4% state rate, and local add-ons reach about 8% in the highest jurisdictions, pushing combined rates into double digits. Many Alabama localities are self-administered, although most accept returns through the state’s ONE SPOT local tax filing system.

Which Alabama Rate Should You Charge?

Alabama generally sources a sale to the place where the buyer takes delivery, so the county and city rates that apply are those of the delivery address. Eligible remote sellers may instead register for the Simplified Sellers Use Tax programme and collect a single flat 8% rate rather than tracking every local jurisdiction.

What Alabama Taxes — and What It Doesn’t

Alabama taxes most tangible personal property. Groceries are taxed at a reduced state rate rather than the general 4% rate, and prescription drugs are exempt. Most professional services are not taxed, but rentals, lodging and certain machinery have their own separate rates.

Look Up an Exact Alabama Sales Tax Rate

Publishing a fixed list of every Alabama city and county rate would be out of date within weeks, so we do not reproduce one here. The Department of Revenue publishes local rates and administers the ONE SPOT system that lists every city and county levy. Open the official Alabama Department of Revenue website at www.revenue.alabama.gov and use its rate lookup for the exact delivery address.

Registering to Collect Sales Tax in Alabama

Before you can legally charge Alabama sales tax you need to be registered with the Alabama Department of Revenue and hold a Alabama sales tax license. Our sales tax application service files the paperwork for you. See the Alabama sales tax application page for what Alabama asks for.

Ready to register in Alabama? Apply for your Alabama sales tax permit online – it only takes a few minutes.

Start your application »

Alabama Sales Tax Rate FAQs

What is the sales tax rate in Alabama?

The Alabama statewide rate is 4.00%. With local taxes added, the total rate at a given address is typically higher — the average combined rate is about 9.46% and local add-ons can reach 8.00%.

Do I need a permit before I collect sales tax in Alabama?

Yes. Collecting sales tax without a valid Alabama sales tax license is not permitted in Alabama. Register first, then start charging tax. You can apply for your Alabama sales tax permit here.

Do remote and online sellers have to collect Alabama sales tax?

Generally yes, once you cross Alabama’s economic nexus threshold or have a physical presence in the state. Marketplace facilitators such as Amazon and Etsy usually collect on their own sales, but sales through your own website normally remain your responsibility. See our sales tax registration overview for how nexus works.

How often do Alabama sales tax rates change?

The statewide rate changes rarely — local rates change far more often, frequently on 1 January, 1 April, 1 July or 1 October. Confirm the current rate with the Alabama Department of Revenue before filing a return.

Sales Tax Rates in Other States

Compare every state on our state sales and use tax rate hub, or check a neighbouring state:

Need to check a number you already have? Use our sales tax number verification page.

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