Alabama sales tax rules
Quick answer
Alabama charges a 4% statewide sales tax, plus local county, city and district add-ons. What gets taxed matters as much as the rate: below is how Alabama treats each category that commonly changes a receipt total.
Direct answers
Each answer has its own page with the full rule and exceptions.
Is there sales tax on groceries in Alabama?
Partly. Alabama taxes grocery food at a reduced 2% state rate instead of the full 4%, and local rates may still apply on top.
Is clothing taxed in Alabama?
Yes. Clothing is fully taxable in Alabama at the combined state and local rate.
Is shipping taxable in Alabama?
It depends on how you invoice it. In Alabama, separately stated delivery is generally exempt, while bundled shipping-and-handling is taxable.
Do I have to charge sales tax for online sales in Alabama?
Only after you cross economic nexus. Once you exceed $250,000 in sales into Alabama over 12 months, you must register with the Alabama Department of Revenue and charge the buyer's destination rate.
Does Alabama have a tax-free weekend?
Yes. Alabama runs a sales tax holiday: Back-to-school holiday in July and a severe weather preparedness holiday in February. Qualifying purchases skip the full combined rate, which runs 10% in covered Alabama metros.
Alabama rates by city
Combined state, county, city and district rates.