What is the sales tax rate in Alabama?

Alabama has a state sales tax rate of 4.000%. However, counties and cities add their own local sales taxes, so the total rate varies by location. Combined rates typically range from 5% to 11%.

Does Alabama have local sales tax?

Yes, Alabama allows counties and cities to impose local sales taxes on top of the 4.000% state rate. Local rates vary significantly across the state, which is why it's important to calculate the exact rate for your specific location.

What city in Alabama has the highest sales tax?

Several Alabama cities have combined rates around 10-11%. The total rate depends on the combination of state, county, and municipal taxes. Use our calculator to find the exact rate for any Alabama city.

Are groceries taxed in Alabama?

Yes, Alabama taxes groceries, but at a reduced state rate. As of September 1, 2025, the state tax on food and groceries is 2% (reduced from 3%). Local sales taxes still apply, so the total rate varies by location. This makes Alabama one of the few states that still taxes groceries.

Is clothing taxed in Alabama?

Yes, clothing and footwear are subject to Alabama's sales tax. There are no special exemptions for clothing regardless of price, unlike some other states.

Do I pay sales tax on used cars in Alabama?

Yes, Alabama charges sales tax on motor vehicle purchases. The rate is 4.000% state tax plus applicable local taxes. The tax is calculated on the purchase price and collected when you register the vehicle.

When did Alabama last change its sales tax rate?

Alabama's general state sales tax rate has been 4.000% for decades. However, Alabama recently reduced the state tax on groceries from 3% to 2% as of September 1, 2025. Local rates change more frequently as cities and counties adjust their rates.

Do I pay AL sales tax on online purchases?

Yes, online purchases delivered to Alabama addresses are subject to sales tax. Since the 2018 Supreme Court ruling, most major online retailers collect Alabama sales tax at checkout.

Sales Tax Calculator

Alabama Sales Tax
Calculator

Calculate Alabama sales tax instantly for any city. Enter any amount to see the exact tax and total with local rates included.

State Rate

4.000%

Select City

Amount before tax

About Alabama Sales Tax

State rate: 4.000%

Local rate in Madison County: 5.000%

Combined rate in Huntsville: 9.000%

State Rate

4.000%

Local Tax

Yes

Max Combined

Lauderdale County

8.500%

Standard Rate

42,053

City	County	Standard Rate	Special District	Population
Huntsville	Madison	9.000%	Standard Rate	230,402
Mobile	Mobile	10.000%	Standard Rate	201,367
Birmingham	Jefferson	10.000%	Standard Rate	196,357
Montgomery	Montgomery	10.000%	Standard Rate	195,818
Tuscaloosa	Tuscaloosa	10.000%	Standard Rate	114,288
Hoover	Shelby	8.500%	Standard Rate	92,606
Auburn	Lee	9.000%	Standard Rate	76,143
Dothan	Houston	9.000%	Standard Rate	71,072
Decatur	Morgan	9.000%	Standard Rate	57,938
Florence	Lauderdale	8.500%	Standard Rate	42,053
Vestavia Hills	Jefferson	10.000%	Standard Rate	39,102
Phenix City	Russell	8.750%	Standard Rate	38,817
Prattville	Autauga/Elmore	9.500%	Standard Rate	37,781
Gadsden	Etowah	9.000%	Standard Rate	33,945
Alabaster	Shelby	9.000%	Standard Rate	33,487
Opelika	Lee	9.000%	Standard Rate	32,107
Northport	Tuscaloosa	9.000%	Standard Rate	31,125
Daphne	Baldwin	9.500%	Standard Rate	29,156
Enterprise	Coffee	9.000%	Standard Rate	28,711
Athens	Limestone	9.000%	Standard Rate	27,156
Homewood	Jefferson	8.000%	Standard Rate	26,414
Bessemer	Jefferson	9.000%	Standard Rate	26,019
Pelham	Shelby	10.000%	Standard Rate	24,318
Fairhope	Baldwin	9.000%	Standard Rate	23,307
Albertville	Marshall	8.000%	Standard Rate	22,386
Anniston	Calhoun	10.000%	Standard Rate	21,564
Oxford	Calhoun	10.000%	Standard Rate	21,537
Prichard	Mobile	10.000%	Standard Rate	18,816
Selma	Dallas	10.000%	Standard Rate	17,971
Madison	Madison	9.000%	Standard Rate	5,657

Note: Rates include state, county, and city taxes. Local rates may change; verify current rates for large purchases.

How to Calculate Sales Tax in Alabama

Sales Tax Calculation

Alabama

Example: Birmingham Purchase

Determine the purchase price

Purchase price (before tax) $500.00

Multiply by the tax rate

$500.00 × 10.000% (0.10)

Sales tax $50.00

Add to the original price

$500.00 + $50.00

TOTAL AMOUNT DUE $550.00

Thank you for your purchase

Reverse Calculation

Know the total? Divide by 1.10 to find the pre-tax price (using 10% rate). Example: $110.00 ÷ 1.10 = $100.00

What's Taxed?

Taxable: Most items including groceries

Exempt: Prescription drugs, some medical items

Special Alabama Sales Tax Rules

Grocery Tax

Alabama is one of the few states that taxes groceries. As of September 1, 2025, the state tax on food is 2% (reduced from 3%), plus applicable local taxes. Most other retail items are taxed at the full 4% state rate.

Recent Change: Alabama reduced the state grocery tax from 4% to 3% in September 2023, then to 2% in September 2025. Local taxes still apply to groceries. Restaurant meals and prepared foods are taxed at the full rate.

Local Rate Variations

Alabama allows extensive local taxation, resulting in significantly different rates across the state

•
County Taxes: Each county can impose its own sales tax
•
City Taxes: Municipalities add additional rates on top of county rates
•
Special Districts: Some areas have special district taxes
•
Range: Combined rates typically range from 5% to 11%

How Alabama Compares to Neighboring States

Here's how Alabama's sales tax stacks up against nearby states

4.000%

Georgia

+ up to 4.00% local tax

4.000%

Florida

+ up to 1.50% local tax

6.000%

Tennessee

+ up to 2.75% local tax

7.000%

Mississippi

+ up to 1.00% local tax

7.000%

Tennessee

7.000%

+ up to 2.75%
local tax

Mississippi

7.000%

+ up to 1.00%
local tax

Alabama

4.000%

+ Local taxes

Combined: 5% - 11%

#8 of 50 states

Georgia

4.000%

+ up to 4.00%
local tax

Florida

6.000%

+ up to 1.50%
local tax

Alabama shares the same 4% state rate with Georgia, but Alabama's extensive local taxes result in much higher combined rates. Tennessee and Mississippi have higher state rates (7%), while Florida's 6% state rate plus lower local taxes typically results in lower combined rates than Alabama.

Got Questions?

Frequently Asked Questions

Alabama Sales Tax Rate History

Alabama's general state sales tax rate has been stable at 4% for decades. However, the state has recently reduced the tax rate on groceries:

Effective Date	Rate	Change	Notes
September 1, 2025	2.000%	▼ -1.000%	State tax on groceries reduced to 2%
September 1, 2023	3.000%	▼ -1.000%	State tax on groceries reduced to 3%
Many decades	4.000%	—	General state rate (stable for decades)
1936	—	—	Sales tax first enacted in Alabama

Note: The 4% general state rate has been stable for decades and applies to most items. The grocery tax reductions (2023, 2025) only affect food purchases. Local rates change frequently as counties and cities adjust their rates.

Related Calculators & Resources

Calculator

Reverse Sales Tax

Find original price from total

State Calculator

Tennessee

Calculate TN sales tax

State Calculator

Mississippi

Calculate MS sales tax

All Calculators

View All State Calculators

Calculate sales tax for all 50 US states

Resources

Official AL Tax Info

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Disclaimer: This calculator provides estimates based on current Alabama sales tax rates as of January 2025. Tax rates are subject to change by state and local legislation. For official tax rates and specific guidance on your situation, please consult the Alabama Department of Revenue or a qualified tax professional.

Not Legal or Tax Advice: The information provided on this page is for informational purposes only and should not be construed as legal or tax advice. Always verify current rates before making large purchases or business decisions.

Sources: Alabama Department of Revenue, Alabama Code Title 40 (Revenue and Taxation)

Last updated: October 10, 2025