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Alabama Department of Revenue · Sales Tax Rate Lookup · Sales Tax Rate Questions: (334) 242-1490 · Technical Support: 866-353-3468 or [email protected] · © 2025 Alabama Department of Revenue | 50 North Ripley Street - Montgomery, Alabama 36104 ·
It was also a bit of a warning shot to the mayors of Alabama’s largest cities. The leadership umbrella for the state’s 67 counties said that if the 8-year-old Simplified Sellers Use Tax (SSUT) is tinkered with, the alternative could be disastrous. Under SSUT, adopted in 2015, a flat 8% tax is applied to online sales. It differs from Alabama’s conventional sales tax rate on in-store purchases at brick-and-mortar stores, which varies by municipality and county.Tuscaloosa, for instance, taxes in-store purchases at 10%. The distribution formulas are also different, which Tuscaloosa and other mayors in larger cities say is unfair because they claim a majority of online sales are conducted in bigger communities.Under SSUT, half of the amount – 4% — goes to the state with the remaining 4% going to cities and counties. Of that, 1.6% goes to the counties while 2.4% goes to municipalities in a formula that is also prorated based on Census population. The conventional sales tax sends 4% to the state.The city claims it is projected to lose $14.6 million in local tax revenues through a calculation that takes the difference between the portion of the SSUT that is distributed to the city versus the approximate amount of revenue Tuscaloosa would get if the internet sale was taxed at a conventional sales tax rate. The Tuscaloosa lawsuit names Vernon Barnett, the commissioner of the Alabama Department of Revenue (ADOR), as the defendant.
For information regarding municipal tax rates in several taxation categories, please click on the links below: · NOTE: The Alabama League of Municipalities takes no responsibility for and makes no assertions as to the accuracy of this tax rate information
You are invited to attend one of four meetings at the Chelsea Community Center located at 11101 Chelsea Road, Chelsea, AL 35043, to learn more about zoning and the zoning initiation process in the Chelsea South Zoning Beat. Sales, Use, Rental, Lodging, & Tobacco Tax · Shelby County Water Bill · State of Alabama Drivers License Renewals · Traffic Ticket · /QuickLinks.aspx · View · Community Resource Guide · County Bid System (eBid) County History · County Holiday Calendar ·Coosa Alabama River Improvement Association, Inc.New STAR IDs can ONLY be issued at ALEA License exam offices.INVITATION TO BID - The "JG" Surface Treatment of Various Roads Read on... View All News
Maddox invited mayors from Alabama’s 50 largest cities to Tuscaloosa on Monday to talk about the issue. They looks at how much those cities are losing when it comes to the internet sales tax and what they call a “loophole” in that tax. Tuscaloosa’s sales tax rate, for example, is 10%. According to the Alabama Department of Revenue, an eligible seller sells tangible property or a service into the state from an inventory or location outside Alabama but does not have a physical presence in the state.Maddox, however, says delivery services like Doordash and GrubHub that fall under the SSUT’s 8% sales tax rate but also have a physical presence in their cities should have to pay the same sales tax as other businesses.He blames the Simplified Sellers Use Tax (SSUT), or Alabama’s internet sales tax.Maddox wants leaders to attended the meeting to talk to their state delegations about changing Alabama’s internet sales tax to what he and others believe is a fairer rate.
The state portion of the grocery tax will fall from 3% to 2%, the result of campaigning by both liberal and conservative groups. “This is great news for the people of Alabama. The latest grocery tax reduction – the second in three years – will make it easier for every Alabamian to make ends meet, especially in this time of persistently high food prices,” said Robyn Hyden, executive director of Alabama Arise, a civil rights advocacy organization that has been at the forefront of efforts to reduce the tax.HB 386, sponsored by Rep. Danny Garrett, R-Trussville and passed during the 2025 legislative session, does not directly impact grocery taxes imposed by city or county governments, though the law allows local governments to cut those taxes if they wish.A message was sent to the Alabama Grocers Association seeking comment. Most states exempt groceries from sales taxes. Alabama for years was one of a handful of states that fully taxed groceries, and had done so since the state first imposed sales taxes in 1939.General Manager Brian Horak walks down an aisle at Post 60 Market in Emerson, Neb. Alabama's state grocery tax will fall from 3% to 2% on Monday as the result of a law passed in the spring.
It was also a bit of a warning shot to the mayors of Alabama’s largest cities. The leadership umbrella for the state’s 67 counties said that if the 8-year-old Simplified Sellers Use Tax (SSUT) is tinkered with, the alternative could be disastrous. Tuscaloosa, for instance, taxes in-store purchases at 10%. The distribution formulas are also different, which Tuscaloosa and other mayors in larger cities say is unfair because they claim a majority of online sales are conducted in bigger communities.Under SSUT, half of the amount – 4% -- goes to the state with the remaining 4% going to cities and counties. Of that, 1.6% goes to the counties while 2.4% goes to municipalities in a formula that is also prorated based on Census population. The conventional sales tax sends 4% to the state.The city claims it is projected to lose $14.6 million in local tax revenues through a calculation that takes the difference between the portion of the SSUT that is distributed to the city versus the approximate amount of revenue Tuscaloosa would get if the internet sale was taxed at a conventional sales tax rate. The Tuscaloosa lawsuit names Vernon Barnett, the commissioner of the Alabama Department of Revenue (ADOR), as the defendant.The biggest concern is that if the SSUT is undone through the judicial system, an alternative program could be implemented that includes taxing internet sales through conventional sales taxes applied by hundreds of jurisdictions throughout Alabama.
Starting that day, Alabama’s state sales tax on food drops by one percentage point. Also that day, Alabama will stop collecting the state sales tax on diapers and other baby products.Starting Sept. 1, the state sales tax on food will drop from 3% to 2%.Local sales taxes on food will not be affected.But the bill did make it easier for cities and counties to reduce their sales tax on food if they choose.
But while state officials marked the moment with smiles, a reality remains: Alabama is still one of only 10 states that tax groceries, and there’s little reason to believe that will change anytime soon – if ever. Even if the remaining 2 percent state tax is eventually removed, the burden won’t disappear. Local governments still collect grocery taxes - that don’t go to the state and for their own use - in all 67 counties and by more than 460 municipalities across Alabama.However, in cities, the local taxes are required since sales for food items provide the revenue needed to pay for the salaries of police officers, firefighters, and code officials, while purchasing dump trucks, asphalt and the salaries of workers who keep the rights of way along streets mowed.Eliminating the 2% sales tax would result in an approximately $3.6 million deficit, according to Mayor Sherry Sullivan. Fairhope, with a population over 26,000, is home to numerous grocery stores including three Publix locations, Walmart, and several other chains. “I’m all for cutting taxes if it makes sense,” said longtime Councilman Jack Burrell, who was re-elected last month.Groceries in Daphne are taxed at 7.5%. “It’s a council decision and no one on our council has brought it up just because of the amount of money it takes out of the budget … $5 million to $7 million out of a $55 million budget is over 10 percent,” he said. “That is a little difficult to swallow for all of the things going on in Daphne and with (maintaining) the size of our police and fire and everything else (within city government).”
The lawsuit, filed in Montgomery County Circuit Court, targets the state’s Simplified Sellers Use Tax (SSUT) — an 8-year-old program that Tuscaloosa officials say unfairly shortchanges cities by taxing millions of internet sales at lower rates than in-store purchases. “Alabama’s Simplified ... The lawsuit, filed in Montgomery County Circuit Court, targets the state’s Simplified Sellers Use Tax (SSUT) — an 8-year-old program that Tuscaloosa officials say unfairly shortchanges cities by taxing millions of internet sales at lower rates than in-store purchases. “Alabama’s Simplified Sellers Use Tax taxes revenue generated in our community and sends it elsewhere,” said Tuscaloosa Mayor Walt Maddox in a statement.Like much of the SSUT debate, the lawsuit is likely to face opposition from the Association of County Commissions of Alabama (ACCA). Supporters for the current tax structure said changing it could jeopardize millions of dollars in revenues to the state.The case also cites DoorDash, UberEats, Shipt and other food delivery service operators who also pay the lower SSUT tax. Tuscaloosa and other cities claim these companies have a physical presence in the cities they operate, including employees, trucks and stores where products are picked up before delivery.As such, they claim the companies should be paying conventional sales taxes to the state and local governments. The lawsuit also cites the June 2018 ruling by the U.S. Supreme Court in the Wayfair vs. South Dakota, which bolstered states’ abilities to collect taxes on online sales.
But while state officials marked the moment with smiles, a reality remains: Alabama is still one of only 10 states that tax groceries, and there’s little reason to believe that will change anytime soon – if ever. Even if the remaining 2 percent state tax is eventually removed, the burden won’t disappear. Local governments still collect grocery taxes - that don’t go to the state and for their own use - in all 67 counties and by more than 460 municipalities across Alabama.However, in cities, the local taxes are required since sales for food items provide the revenue needed to pay for the salaries of police officers, firefighters, and code officials, while purchasing dump trucks, asphalt and the salaries of workers who keep the rights of way along streets mowed.Eliminating the 2% sales tax would result in an approximately $3.6 million deficit, according to Mayor Sherry Sullivan. Fairhope, with a population over 26,000, is home to numerous grocery stores including three Publix locations, Walmart, and several other chains. “I’m all for cutting taxes if it makes sense,” said longtime Councilman Jack Burrell, who was re-elected last month.Groceries in Daphne are taxed at 7.5%. “It’s a council decision and no one on our council has brought it up just because of the amount of money it takes out of the budget … $5 million to $7 million out of a $55 million budget is over 10 percent,” he said. “That is a little difficult to swallow for all of the things going on in Daphne and with (maintaining) the size of our police and fire and everything else (within city government).”
This weekend, Alabama families can gear up for another school year by shopping during the state’s annual sales tax holiday. The holiday is from July 18 to July 21. Certain items are exempted from the state sales tax. Local cities and counties may also opt to waive their local sales or use tax.Madison County is the latest locality to join the tax-free weekend.To see which areas are participating in the tax-free weekend, go to the Department of Revenue website.
How does Alabama’s tax code compare? Alabama has a graduated state individual income tax, with rates ranging from 2.00 percent to 5.00 percent. There are also jurisdictions that collect local income taxes. Alabama has a 6.50 percent corporate income tax rate. Alabama does not have an estate tax or inheritance tax. Alabama has a 30.2 cents per gallon gas tax rate and a $0.675 cigarette excise tax rate. The State of Alabama collects $4,227 in state and local tax collections per capita. Alabama has $6,833 in state and local debt per capita and has a 72 percent funded ratio of public pension plans.Each state’s tax code is a multifaceted system with many moving parts, and Alabama is no exception. The first step towards understanding Alabama’s tax code is knowing the basics. How does Alabama collect tax revenue? Click the tabs below to learn more!Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978. 24 min read ... Some European countries have raised their statutory corporate rates over the past year, including Czechia, Estonia, Iceland, Lithuania, and Slovenia. 3 min read ... Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections.The One Big Beautiful Bill’s changes to the taxation of international income have surprising implications for state codes, yielding tax increases and a revised tax base that, through quirks of state incorporation, bears very little resemblance to the federal base and almost nothing of its purpose. 10 min read ... Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 24 percent of combined state and local tax collections.
SBA.gov's business licenses and permits search tool allows you to get a listing of federal, state and local permits, licenses, and registrations you'll need to run a business. Taxpayer identification numbers (TIN) Alabama state website · Small business events in your area · Office of the Secretary of State · Business entities - Office of the Secretary of State · Business licensing · Department of Economic and Community Affairs ·Alabama state links
The Alabama Department of Revenue has developed B.E.S.T. resources and learning modules to help business owners gain and understand the tax information they need to open and operate a business in Alabama. The CHOOSE Act makes refundable income tax credits called education savings accounts available to Alabama’s K-12 students, beginning in the 2025-2026 school year.Visit My Alabama Taxes for filing Individual Income Tax returns, including free filing of federal returns, visit the Alabama Individual Income Tax Electronic Filing OptionAn official website of the Alabama State government.
Many other laws passed this year took effect July 1 or before. And many will take effect Oct. 1. They must have a password to allow an adult to deactivate and reactivate the filter. This story was edited on Sept. 2 to say that adult diapers are included in the tax exemption.Two tax breaks passed by the Alabama Legislature and signed by Gov.Starting today, Alabama’s state sales tax on food drops by one percentage point -- from 3% to 2%.Also starting today, Alabama will stop collecting the state sales tax on diapers and other baby products.
Birmingham, Alabama: Putting People First. What Do You Need To Do Today? File taxes, renew business licenses, and find helpful information.The City of Birmingham offices will be closed on Monday, Sept. 1 in observance of the Labor Day holiday. All trash routes will be delayed by one day.
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The 2025 Alabama legislative session marked a productive period for taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Below are the key taxpayer-friendly provisions passed during the session, emphasizing their potential to foster economic growth while acknowledging areas where complexity persists. One of the standout pro-growth measures passed is Act 2025-334 (formerly House Bill 379), effective January 1, 2026. This legislation establishes a 30-day safe harbor for nonresident employees, exempting their compensation from both Alabama income tax and employer withholdingWithholding is the income an employer takes out of an employee’s paycheck and remits to the federal, state, and/or local government.It is calculated based on the amount of income earned, the taxpayer’s filing status, the number of allowances claimed, and any additional amount the employee requests. requirements for work performed in the state for 30 or fewer days in a calendar year. This policy mirrors approaches adopted by other states to streamline tax administration for mobile workers.By reducing the tax compliance burden on businesses with nonresident employees and providing clarity for workers, this law enhances Alabama’s attractiveness to employers with flexible, cross-border workforces. However, professional athletes, entertainers, and public figures remain subject to taxation on Alabama-sourced income.Another significant tax reform, Act 2025-344 (House Bill 543, with companion Senate Bill 300), raises the business tangible personal property (TPP) tax exemption from $40,000 to $100,000 in market value, effective October 1, 2025. This exemption applies to assets like machinery, equipment, and office furnishings, offering substantial relief to small and medium-sized businesses. Crucially, businesses below this threshold are also relieved of the obligation to file TPP returns, significantly reducing administrative costs.
Sales and Use Taxes are due no later than the 20th day of the month, following the end of the preceding month. Montgomery County follows the Tax Laws of the State of Alabama in administering these taxes. Effective April 1, 2008, if you owe $500 or more in taxes, you will be required to file ... Sales and Use Taxes are due no later than the 20th day of the month, following the end of the preceding month. Montgomery County follows the Tax Laws of the State of Alabama in administering these taxes. Effective April 1, 2008, if you owe $500 or more in taxes, you will be required to file the return online and pay the tax online.This local Montgomery County Rental tax is not eligible for ONE SPOT and cannot be filed or remitted electronically through ONE SPOT. Paper returns and remittances are required. ... Please include your Montgomery County Alabama local eight-digit taxpayer id/jurisdiction number on all returns and correspondence.The Tax & Audit Department is located in the Montgomery County Courthouse Annex III Building, located at 101 S. Lawrence Street. The offices are located on the 2nd floor. The mailing address is P. O. Box 4779 Montgomery, AL 36103.The phone number to contact the department is (334) 832-1697. The office is located in the Montgomery County Courthouse Annex at 101 South Lawrence Street. The mailing address for all correspondence is: Montgomery County Commission Tax & Audit Department PO Box 4779 Montgomery, AL 36103-4779