Estimate only — not tax advice. For decisions specific to your situation, consult a qualified professional. See methodology and sources.
Alabama Sales Tax
State + average local combined rate, category exemptions, and how it compares to neighbors.
State rate
4.00%
Average combined (state + local)
9.29%
Category exemptions
| Category | Rule | Detail |
|---|---|---|
| Groceries | Reduced rate | Reduced 3% state rate (eff. Sep 2023); local rates may add 4-5% |
| Clothing | Taxed (full rate) | Everyday apparel and footwear. |
| Prescription drugs | Exempt | Prescribed medications dispensed by a licensed pharmacist. |
Alabama sales tax holiday
Back-to-School Holiday
When: Late July (3rd weekend)
Items: Clothing < $100, computers < $750, school supplies < $50
Per-item cap: $100/item
Example: $100 purchase
- State sales tax only: $4.00
- Combined (state + average local): $9.29
- Total with combined tax: $109.29
Major cities in Alabama
| City | Combined rate | vs state avg |
|---|---|---|
| Birmingham | 10.00% | +0.71% |
| Montgomery | 10.00% | +0.71% |
| Mobile | 10.00% | +0.71% |
| Huntsville | 9.00% | -0.29% |
| Tuscaloosa | 10.00% | +0.71% |
Border shopping — vs neighboring states
For larger purchases, driving to a neighbor with lower combined rate can save real money.
| State | State rate | Avg combined | vs AL | Save on $1,000 |
|---|---|---|---|---|
| Alabama (current) | 4.00% | 9.29% | — | — |
| Florida | 6.00% | 7.00% | -2.29% | $22.90 |
| Mississippi | 7.00% | 7.07% | -2.22% | $22.20 |
| Georgia | 4.00% | 7.38% | -1.91% | $19.10 |
| Tennessee | 7.00% | 9.55% | +0.26% | — |
Common questions
- What is the sales tax rate in Alabama?
- Alabama levies a 4.00% state sales tax. With local taxes added, the statewide average combined rate is 9.29%. Actual rate at the register depends on your city and county.
- Does Alabama tax groceries?
- Alabama applies a reduced rate to groceries. Reduced 3% state rate (eff. Sep 2023); local rates may add 4-5%
- Does Alabama have a sales tax holiday?
- Yes. Alabama runs Back-to-School Holiday late july (3rd weekend). Eligible items: clothing < $100, computers < $750, school supplies < $50 (per-item cap: $100/item).
- Who collects sales tax in Alabama?
- The Alabama Department of Revenue collects state-level sales tax; counties and cities add local rates that are remitted through the same return. Out-of-state sellers shipping to Alabama must collect if they exceed economic nexus thresholds (typically $100k in sales or 200 transactions).
Full data sources and formulas: /sources.
Estimate only — not tax advice. Local rates vary by city and county — your actual rate at the register may differ from the state average. Category-specific exemptions (groceries, prescription drugs, clothing) and tax holidays change by year; check the Alabama DOR for current rules. All states →
Last reviewed: · Beforeview Editorial · editorial policy