Free Alabama Sales Tax Calculator

Alabama Sales Tax Calculator

Found our Free Alabama Sales Tax Calculator useful? Bookmark and share it.

Facebook
X
LinkedIn
Email
WhatsApp
Print
Alabama map covered in USD

How to Use the Alabama Sales Tax Calculator

Our Alabama Sales Tax Calculator is designed to be user-friendly and provide accurate sales tax calculations quickly. Here’s a step-by-step guide on how to use it:

Choose Your Input Method

  • ZIP Code: If you know the ZIP code of the location where the purchase will be made, select the “ZIP Code” tab.
  • Tax Region: If you don’t know the ZIP code but know the specific tax region name (e.g., “LEEDS,” “TUSCALOOSA”), select the “Tax Region” tab.

Select the Location

  • ZIP Code Tab:
    • Start typing the ZIP code into the field. A dropdown list will appear with matching ZIP codes.
    • Select the correct ZIP code from the list.
  • Tax Region Tab:
    • Choose the relevant tax region from the dropdown list.

Enter Purchase Amount

  • In the “Purchase Amount ($)” field, enter the total cost of the goods or services you’re purchasing.

Include Special Rate (Optional)

  • Check the box: If the purchase is subject to a special tax rate (e.g., certain groceries, prepared food), check the “Include Special Rate” box.
  • Leave unchecked: If the purchase is not subject to a special rate, leave the box unchecked.

Calculate Sales Tax

  • Click the “Calculate Sales Tax” button.

View Results

The calculator will display a detailed breakdown of the sales tax calculation, including:

  • State tax
  • County tax
  • City tax
  • Special tax (if applicable)
  • Total sales tax
  • Total cost (purchase amount + total sales tax)

Understanding Alabama Local Tax Notices

Sales tax in Alabama can be a bit complex because it’s not just the state that levies taxes. Counties and cities within Alabama also have the power to impose their own local sales taxes. This means that the total sales tax rate you pay on a purchase can vary depending on where in Alabama you are.

To keep track of these local sales taxes, the Alabama Department of Revenue (ALDOR) has a system of Local Tax Notices. These notices inform the public about any changes to local sales, use, rental, lodgings, tobacco, or gasoline taxes.

Here's a breakdown of what the Local Tax Notices tell you:

  • Posted Date: This is the date ALDOR received the notice from the county or city.
  • Locality: This specifies the county or city that is making a change to its local taxes.
  • Administrator: This indicates who is responsible for administering the tax. It could be:
    • STATE: The Alabama Department of Revenue administers the tax.
    • SELF: The county or city administers the tax itself.
    • AVENU: A third-party company, Avenu Insights & Analytics, administers the tax.
  • Subject: This explains what kind of change is being made to the tax. It could be:
    • New Tax: A brand new tax is being implemented.
    • Rate Change: The rate of an existing tax is increasing or decreasing.
    • Administration Change: There’s a change in who administers the tax (e.g., from SELF to STATE).
    • Agency Change: A different agency within the locality will be handling the tax.
  • Statutory Effective Date: This is the date when the new tax or tax change officially goes into effect.

Why is this important for you?

  • Awareness: By checking the Local Tax Notices, you can stay informed about the latest sales tax rates in different parts of Alabama.
  • Accuracy: This information helps ensure that businesses and individuals calculate the correct amount of sales tax for their transactions.
  • Compliance: Being aware of local tax changes helps businesses remain compliant with Alabama tax laws.

Where to find Local Tax Notices:

You can find the most up-to-date Local Tax Notices on the Alabama Department of Revenue’s website.

Alabama flag

Alabama Local Tax Notices

Posted Date Locality Administrator Subject Statutory Effective Date
01/22/2025 Houston County AVENU New Tax 02/01/2025
01/22/2025 Henry County STATE New Tax 02/01/2025
01/22/2025 Chilton County STATE Administration Change 02/01/2025
12/31/2024 Owens Cross Roads State New Tax 01/01/2025
12/31/2024 Trussville Self Rate Change 01/01/2025
12/23/2024 Jefferson County Self Agency Change 01/01/2025
12/20/2024 Rehobeth STATE Admin Change 01/01/2025
11/25/2024 Cherokee County STATE Admin Change 12/01/2024
11/25/2024 Riverview STATE New Tax 12/01/2024
11/24/2024 Saraland AVENU Rate Change 12/01/2024
11/14/2024 St Florian State Admin Change 12/01/2024
10/24/2024 Camden AVENU Rate Change 11/01/2024
10/23/2024 Tallassee STATE Agency change 11/01/2024
09/26/2024 Bon Air SELF New Tax 10/01/2024

Data Retrieved From: https://www.revenue.alabama.gov/

Alabama logo

Alabama State Tax Rates

Tax Type Rate Type Rate
CONSUMERS USE AUTO 2.000%
CONSUMERS USE FARM 1.500%
CONSUMERS USE GENERAL 4.000%
CONSUMERS USE FOOD/GROCERY (Effective September 1, 2023) 3.000%
CONSUMERS USE MFG. MACHINE 1.500%
LODGINGS TAX GENERAL (MOUNTAIN LAKES AREA) 5.000%
LODGINGS TAX GENERAL (ALL OTHER AREAS) 4.000%
RENTAL TAX AUTO 1.500%
RENTAL TAX LINENS/GARMENTS 2.000%
RENTAL TAX GENERAL 4.000%
SALES TAX AUTO 2.000%
SALES TAX FARM 1.500%
SALES TAX GENERAL \ AMUSEMENT 4.000%
SALES TAX FOOD/GROCERY (Effective September 1, 2023) 3.000%
SALES TAX MFG. MACHINE 1.500%
SALES TAX VENDING (FOOD PRODUCTS) 3.000%
SALES TAX VENDING (ALL OTHER) 4.000%
SELLERS USE AUTO 2.000%
SELLERS USE FARM 1.500%
SELLERS USE GENERAL 4.000%
SELLERS USE FOOD/GROCERY (Effective September 1, 2023) 3.000%
SELLERS USE MFG. MACHINE 1.500%

Data Retrieved From: https://www.revenue.alabama.gov/

Alabama State Tax Rates

In addition to local sales taxes, Alabama also has state-level taxes that apply to various goods and services. These state tax rates are important to understand because they form the base rate upon which local taxes are added.

Here’s a breakdown of the Alabama state tax rates:

Sales and Use Tax

  • Auto: 2.000% This applies to the sale, use, or rental of automobiles.
  • Farm: 1.500% This applies to certain farm equipment and supplies.
  • General/Amusement: 4.000% This is the general sales tax rate that applies to most goods and services, including amusement and entertainment.
  • Food/Grocery (Effective September 1, 2023): 3.000% This is a reduced rate specifically for food and groceries.
  • Manufacturing Machine: 1.500% This applies to machinery used in manufacturing.
  • Vending (Food Products): 3.000% This applies to food products sold through vending machines.
  • Vending (All Other): 4.000% This applies to non-food items sold through vending machines.

Lodgings Tax

  • General (Mountain Lakes Area): 5.000% This applies to lodging accommodations in the Mountain Lakes region of Alabama.
  • General (All Other Areas): 4.000% This applies to lodging accommodations in all other areas of Alabama.

Rental Tax

  • Auto: 1.500% This applies to the rental of automobiles.
  • Linens/Garments: 2.000% This applies to the rental of linens and garments.
  • General: 4.000% This is the general rental tax rate that applies to most other rental transactions.

Important Notes:

  • Consumers Use Tax vs. Sellers Use Tax: These are essentially the same tax. “Consumers Use Tax” is levied on purchases made outside of Alabama but used within the state. “Sellers Use Tax” applies to businesses that purchase goods for resale but use them instead.
  • Effective Dates: Pay close attention to effective dates, especially for rate changes. For example, the food/grocery tax rate was reduced to 3% on September 1, 2023.
  • Combined Rates: Remember that these are just the state tax rates. To get the total sales tax rate, you need to add the applicable local taxes (county and city) as well. Our Alabama Sales Tax Calculator helps you do this by combining state and local rates.
  • Additional Information: For detailed information about specific tax rates, exemptions, or other tax-related questions, consult with a tax professional or the Alabama Department of Revenue.

Alabama Severe Weather Preparedness Sales Tax Holiday

Alabama offers a helpful sales tax holiday to encourage residents to prepare for severe weather. During this holiday, you can purchase certain essential items without paying state sales tax. Here’s what you need to know:

What is it?

The Severe Weather Preparedness Sales Tax Holiday is a specific period when the state of Alabama waives its usual sales tax on a variety of items related to storm preparedness. This allows residents to save money while equipping themselves for potential severe weather events.

When is it?

The holiday takes place annually on the last full weekend of February. In 2025, this falls on:

  • Start: Friday, February 21st, 12:01 AM
  • End: Sunday, February 23rd, midnight

Which items are included?

While a comprehensive list can be found on the Alabama Department of Revenue website, here are some examples of commonly exempt items:

  • Portable generators: Useful for power outages.
  • Batteries: To power flashlights, radios, etc.
  • Weather radios: To stay updated on weather alerts.
  • Flashlights: Essential for navigating during power outages.
  • First aid kits: Important for treating injuries.
  • Cell phone chargers: To keep communication devices charged.
  • Tarps and other waterproof sheeting: To protect belongings from water damage.

Local participation:

It’s important to note that while the state waives its sales tax, counties and cities in Alabama can choose whether or not to participate. This means that you might still need to pay local sales taxes on these items, even during the holiday.

  • Check the list: The Alabama Department of Revenue provides an updated list of participating localities on their website.
  • Our calculator can help: Our Alabama Sales Tax Calculator can help you determine the exact sales tax rate for your location, including during the holiday period. Simply select your ZIP code or tax region to see the applicable rates.

Tips for the holiday:

  • Plan ahead: Make a list of the items you need before the holiday starts.
  • Compare prices: Take advantage of the tax savings by comparing prices from different retailers.
  • Shop early: Don’t wait until the last minute, as popular items may sell out.
  • Be aware of local participation: Remember to check if your county or city is participating to avoid any surprises at checkout.
Alabama Big Al mascot

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

Trusted By

Trusted by 3.2M+ Employees: 21 Years of Service Across Startups to Fortune 500 Enterprises

Join our ever-growing community of satisfied customers today and experience the unparalleled benefits of TimeTrex.

Logo for H&R Block
Hilton Hotels and Resorts logo
HP computers logo
Oracle logo black and white
PWC brand logo
Texas A&M University logo
Mcdonald's brand logo
New York Stock Exchange Logo black and white
Walmart brand logo
London Drugs logo black and white

Strength In Numbers

Join The Companies Already Benefiting From TimeTrex

Users
0
Companies
0
Years
0

Time To Clock-In

Start your 30-day free trial!

Experience the Ultimate Workforce Solution and Revolutionize Your Business Today

TimeTrex Mobile App Hand