2026 rates
Alabama Sales Tax Calculator
The Alabama state sales tax rate is 4%. With local additions, the average combined rate is 9.46%, rising to about 12% in the highest-taxing areas.
Sales tax by city in Alabama
| City | Combined rate |
|---|---|
| Birmingham | 10% |
| Montgomery | 10% |
| Huntsville | 9.50% |
| Mobile | 10% |
| Tuscaloosa | 10% |
How Alabama sales tax works
The headline rate in Alabama is 4%, but that is the smaller half of what a buyer actually pays. Local jurisdictions add 5.46% on average, more than the state itself, taking the typical combined rate to 9.46% and up to 12% in the highest-taxing areas.
That combined rate ranks Alabama number 4 of 51 US jurisdictions, 2.89% above the national average of 6.57%.
City rates inside Alabama are not uniform. Birmingham sits at 10% while Huntsville is 9.50%, a spread of 0.50% on the same product. Because most states tax on where the buyer takes delivery rather than where you ship from, that spread follows the shipping address and not your warehouse.
Owing tax and being required to collect it are separate questions. Alabama sets its economic nexus threshold at $250,000 in sales into the state. Below that you generally have no obligation to register; above it you do, and the obligation applies from the point you cross rather than retroactively across the whole year. Check your own sales into Alabama against that figure before you register anywhere.
Rates below are the published 2026 figures. Local rates change more often than state rates, so verify with the Alabama revenue authority for a transaction of any size, and remember that the rate is only one input: whether the product is taxable at all, and whether shipping is taxable, both vary by state.
Alabama sales tax questions
What is the sales tax rate in Alabama?
The state rate is 4%. With local additions averaging 5.46%, the typical combined rate is 9.46%.
Does Alabama have local sales taxes?
Yes. Local rates average 5.46% and go as high as 8%, so the combined rate depends on the buyer's address.
When do I have to register for sales tax in Alabama?
Once your sales into Alabama pass $250,000 you cross the economic nexus threshold and are generally required to register and collect. Below that there is usually no obligation.
How do I work out sales tax backwards from a total?
Divide the tax-inclusive total by one plus the combined rate to recover the pre-tax price, then subtract. At 9.46% you divide by 1.0946. The main calculator has a reverse mode that does this.
Is sales tax charged on shipping in Alabama?
It depends on how the charge is presented and whether the items are taxable. Some states tax shipping when it is part of a taxable sale and others do not. Confirm the current position with the Alabama revenue authority before setting it in your checkout.
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