How 2023 Sales Tax are calculated in Alabama

The state general sales tax rate of Alabama is 4%. In addition to the state-level sales tax, cities and municipalities in Alabama have the authority to levy their own sales tax rates. These local rates can add up to 5%, resulting in a combined maximum sales tax rate of 12.5% in certain regions.

Every 2023 combined rates mentioned above are the results of Alabama state rate (4%), the county rate (0% to 6%), the Alabama cities rate (0% to 5%), and in some case, special rate (0% to 3.95%).

Variations by Purchase Type

Alabama's sales tax rate may vary depending on the type of purchase. Examples of taxable categories may include:

• Consumer use tax
• Rental tax
• Sales tax
• Sellers use tax
• Lodgings tax

Alabama state rate(s) for 2023

Lowest possible rate: 4% (e.g., Cardiff, Alabama)
Other common rates: 5% .5.5%, 6%, 6.5%, 7%, 7.5%, 7.625%, 7.75%, 8%, 8.5%, 8.75%, 8.875%, 9%, 9.25%, 9.5%, 9.75%, 9.875%, 10%, 10.5%, 10.95%, 11%, 11.5%, 12%,
Highest possible rate: 12.5% (Arab, Alabama)
Average combined rate across Alabama: 8.778%

Other 2023 sales tax Facts for Alabama