The Alabama state sales tax rate is 4.0% in 2026. When county and city taxes are added, the combined rate ranges from 4.0% in areas with no local additions up to 13.5% in the highest-taxed jurisdictions. The most populated areas of Alabama — including Jefferson County — have a combined rate of 9.0%.
Alabama has some of the highest local tax rates in the US, with certain cities exceeding 10%.
💡 Quick Reference: $100 purchase in Alabama at the average combined rate costs approximately $108.75 after tax. Use the calculator above to find the exact amount for any county or city in Alabama.
Groceries in Alabama are taxed at 3% state rate. Clothing purchases are taxable at full rate. Prescription drugs and medical devices are generally exempt from sales tax in Alabama, as they are in most US states.
Common Alabama Sales Tax Exemptions
💊
Prescription Medicine
Prescription drugs are fully exempt from Alabama sales tax.
🌾
Grocery Food
Unprepared groceries are taxed at 3% state rate in Alabama.
🏭
Manufacturing Equipment
Equipment used directly in manufacturing is generally exempt.
🌱
Agricultural Supplies
Seeds, livestock, and farm feed are generally exempt in Alabama.
👕
Clothing
Clothing is taxable at full rate in Alabama.
📚
Textbooks
Textbooks for educational use are often exempt or reduced rate.
How Does Alabama Sales Tax Work?
Sales tax in Alabama is collected at the point of purchase by retailers and remitted to the Alabama Department of Revenue. The total rate you pay is the sum of the Alabama state rate (4.0%) plus any applicable county and city rates in your location.
Businesses with a physical presence in Alabama — including offices, warehouses, or employees — have sales tax nexus and must collect and remit Alabama sales tax. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, remote sellers with $100,000+ in Alabama annual sales or 200+ Alabama transactions must also register and collect Alabama sales tax even without a physical presence.
📅 Alabama Sales Tax Filing: Returns are typically due on the 20th of the month following the reporting period. Filing frequency (monthly, quarterly, or annual) is assigned by the Alabama Department of Revenue based on your sales volume. File and pay online through the Alabama state tax portal.
The Alabama state sales tax rate is 4.0% in 2026. With county and city additions, combined rates range from 4.0% to 13.5% depending on your location. The most common combined rate in populated Alabama counties is around 8.75%. Use the calculator above to find the exact rate for your specific county and city.
Groceries in Alabama are taxed at 3% state rate. This applies to unprepared food items purchased at grocery stores. Prepared food (restaurant meals, hot food from a deli counter) is generally taxed at the full combined rate regardless of state grocery exemptions.
To calculate Alabama sales tax, multiply your purchase amount by the combined rate (as a decimal). For example, a $200 purchase in Jefferson County at 9.0%: $200 × 0.90 = $18.00 in sales tax, making the total $218.00. Or simply use the free Alabama sales tax calculator at the top of this page.
Yes, if you meet Alabama’s economic nexus threshold. Remote sellers must collect and remit Alabama sales tax if they have $100,000 or more in Alabama sales or 200+ separate Alabama transactions in a calendar year. This applies to all online sellers including Amazon FBA sellers, Shopify stores, and marketplace sellers. Marketplace facilitators like Amazon, Etsy, and eBay collect and remit on behalf of their sellers in Alabama.
Most services are not subject to Alabama sales tax, which primarily applies to the sale of tangible personal property. However, certain services are taxable in Alabama — including some digital services, repair services, and services that are inseparable from a taxable product. Consult the Alabama Department of Revenue or a tax professional for guidance on specific service types.
The highest combined sales tax rate in Alabama is 13.5%, which occurs in areas with the maximum local tax additions on top of the 4.0% state base rate. The lowest rate is the state base rate of 4.0% in areas with no local taxes. See the county-by-county table above for the exact rate in each area of Alabama.