Alabama Sales Tax Calculator
Calculate the exact sales tax for any purchase in Alabama. Get instant breakdowns of state, county, and city taxes. Updated with current 2026 rates.
AL Base State Rate: 4% (up to 11% combined)
Jefferson
Total Amount
$106.00
$100.00 + $6.00 tax
Tax Components
Alabama Sales Tax Highlights
Alabama has a 4% state sales tax rate
Local taxes can add up to 7%, for combined rates up to 11%
Groceries are fully taxed (no exemption)
Prescription drugs are exempt
Alabama Sales Tax FAQ
What is Alabama's sales tax rate?
Alabama has a 4% state sales tax. However, local taxes (county and city) can add significantly more. The average combined rate is about 9.25%, with some areas reaching 11%.
Are groceries taxed in Alabama?
Yes, Alabama is one of the few states that taxes groceries at the full rate. Both state and local sales taxes apply to grocery purchases.
Alabama Sales Tax Rate Structure in 2026
Alabama imposes a 4% state sales tax on most retail purchases. Local jurisdictions — counties, cities, and special districts — add their own taxes on top of the state rate, and these local additions can be substantial. The average combined rate across Alabama is approximately 9.25%, with the highest combined rates reaching 11% in certain municipalities.
Alabama is an origin-based sourcing state, meaning sellers collect the tax rate for the location where the sale originates rather than where the buyer is located. This makes the seller's business address the determining factor for which local rate applies to in-person transactions.
| Area | State Rate | Local Rate | Combined Rate |
|---|---|---|---|
| Birmingham (Jefferson Co.) | 4% | 6% | 10% |
| Mobile (Mobile Co.) | 4% | 5% | 9% |
| Huntsville (Madison Co.) | 4% | 2.5% | 6.5% |
| Montgomery (Montgomery Co.) | 4% | 6% | 10% |
| Tuscaloosa (Tuscaloosa Co.) | 4% | 6% | 10% |
Tax-Exempt Items and Special Rules in Alabama
Alabama has fewer exemptions than most states. Notably, groceries are fully taxable at both the state and local level — Alabama is one of only a handful of states that taxes grocery food at the full rate. Prescription drugs are exempt from Alabama sales tax.
| Category | Taxable? | Notes |
|---|---|---|
| Groceries | Yes — full rate | State + local tax applies |
| Clothing | Yes | No exemption |
| Prescription drugs | Exempt | Requires valid prescription |
| Over-the-counter medicine | Yes | Taxable at full rate |
| Motor vehicles | Yes | Title Ad Valorem Tax may apply instead in some cases |
| Farm equipment | Exempt | Used directly in agricultural production |
Alabama offers a limited annual back-to-school sales tax holiday (typically the third weekend in July), during which clothing, computers, and school supplies below certain thresholds are exempt from the state 4% tax. Local jurisdictions may or may not participate.
Filing and Compliance for Alabama Sales Tax
The Alabama Department of Revenue (ALDOR) administers state sales tax collection. Businesses must obtain a sales tax license and file returns on a monthly, quarterly, or annual basis depending on their tax liability. Monthly filers are those with more than $2,400 in annual tax liability.
Alabama established economic nexus rules effective October 1, 2018, requiring remote sellers with more than $250,000 in annual sales to Alabama customers to collect and remit sales tax. Marketplace facilitators (Amazon, eBay, etc.) must also collect tax on behalf of third-party sellers under the Simplified Sellers Use Tax (SSUT) program.
| Filing Detail | Requirement |
|---|---|
| Economic nexus threshold | $250,000 in annual Alabama sales |
| Marketplace facilitator rule | Yes — must collect on behalf of sellers |
| Filing frequency | Monthly (>$2,400/yr), Quarterly, or Annual |
| State agency | Alabama Department of Revenue (ALDOR) |
| Late filing penalty | 10% of tax due or $50 minimum |
Alabama's Simplified Sellers Use Tax (SSUT) program offers a flat 8% rate for remote sellers, simplifying compliance by eliminating the need to calculate individual local rates. Participation is voluntary but popular among out-of-state sellers.
Related Calculators
Official References
This calculator uses current sales tax rates based on official sources:
- Alabama Department of Revenue
Official Alabama tax authority
Tax rates are updated regularly but may change. Always verify current rates with local tax authorities for official transactions.