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Sales Tax by State

Alabama Sales Tax Calculator

Alabama's state rate of 4.00% looks modest, but local jurisdictions can add up to 7.50% on top — pushing combined rates to 9.29% on average. Reduced state grocery rate of 3% effective 2023. Local taxes still apply to groceries.

Total with tax
$109.29
Combined rate 9.290%
Purchase amount$100.00
State tax (4.000%)$4.00
Local tax (5.290%)$5.29
Total tax$9.29
Alabama notes: Reduced state grocery rate of 3% effective 2023. Local taxes still apply to groceries. Statewide average combined rate: 9.29%. Max local rate: 7.50%. Groceries: taxed at 3%.
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How Alabama sales tax works

Alabama applies a 4.00% state sales tax to most retail purchases. Counties, cities, and special districts can add up to 7.50% on top, so the actual rate you pay varies by jurisdiction. The statewide average combined rate is 9.29%.

Unlike most states, Alabama taxes groceries — but at a reduced rate of 3.00% rather than the full 4.00%. Local sales taxes generally still apply to grocery purchases at the full local rate. Prepared and restaurant food is taxed at the regular combined rate.

For exact rates by ZIP code or address, use the Alabama Department of Revenue's online lookup. The combined rate at the register is whatever the state rate plus the local jurisdiction add to — and local rates can shift each year as cities pass new measures. Run any purchase amount through the calculator above to see the breakdown.

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Frequently asked questions

What is Alabama's sales tax rate?

The Alabama state sales tax rate is 4.00%. After typical local taxes, the average combined rate is 9.29%.

Does Alabama tax groceries?

Yes, but at a reduced rate of 3.00%. Local sales taxes generally still apply at the full local rate.

Is clothing taxed in Alabama?

Yes — clothing is taxable in Alabama at the standard sales tax rate.

What about online purchases shipped to Alabama?

Online retailers with "economic nexus" in Alabama (typically $100,000+ in annual sales or 200+ transactions per year) must collect Alabama sales tax at checkout. Marketplaces like Amazon, eBay, and Etsy generally collect it automatically. For purchases from out-of-state sellers that don't collect, Alabama expects buyers to remit "use tax" — though enforcement on individuals is rare.

What is Alabama's state income tax rate?

Alabama's top marginal state income tax rate is 5.00%. For details on self-employment tax including state-by-state combined rates, see our Self-Employment Tax Calculator.

Where do I look up the exact rate for my address in Alabama?

Use the Alabama Department of Revenue's online address lookup. Combined rates can vary by ZIP code, especially when special tax districts (transit, stadiums, redevelopment zones) overlap with parts of a city.

Sales tax in nearby states

Mississippi
Avg 7.07%
Georgia
Avg 7.38%
Tennessee
Avg 9.55%
Florida
Avg 7.02%

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Disclaimer: This calculator provides estimates for informational purposes only and does not constitute financial, tax, accounting, or legal advice. Tax rates, regulations, and economic data change frequently. Consult a qualified accountant or tax professional for advice specific to your situation.