Alabama Sales Tax Calculator

If your business sells physical products or certain types of services, you will need to collect and pay sales tax. In Alabama, the first step is visiting the revenue department website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit. 

Use our Sales Tax Calculator to determine your exact sales tax rate and total purchase amount. 

What Products and Services Are Subject to Sales Tax in Alabama?

All retail sales of tangible goods are subject to sales tax in Alabama. Services are rarely subject to sales tax. Prescription drugs and gasoline are exempt from sales tax in Alabama.

Alabama Sales Tax Rate

The state sales tax rate in Alabama is 4%.

Alabama sales tax rates vary depending on which county and city you’re in. Check Alabama Department of Revenue site for the exact rates.

How to Register for Alabama Sales Tax

In Alabama, acquire a seller’s permit by following the Department of Revenue’s detailed instructions for registration: 

1. Go to the My Alabama Taxes website. 
2. Register for an account.
3. Fill out the business tax registration form.

Conclusion 

In Alabama, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.