Do I have to charge sales tax for online sales in Alabama?
Quick answer
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.
Remote sellers with more than $250,000 in Alabama retail sales must collect through the Simplified Sellers Use Tax program.
Rule summary
How Alabama treats each category.
| Economic nexus — sales threshold | $250,000 |
|---|---|
| Transaction-count threshold | None — sales volume only |
| Marketplace facilitator collection | Required — Amazon, Etsy and eBay collect on your behalf for their sales |
| Rate to charge | The buyer's destination rate (10% in covered Alabama metros) |
| Registration authority | Alabama Department of Revenue |
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Alabama Department of Revenue or a tax professional before relying on it for filing.
Combined rates in Alabama
What a taxable purchase actually costs in Alabama.
Frequently asked
Answers pulled from the same rule set.
- 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.
- Do marketplace sales count toward the Alabama threshold?
- Marketplaces collect and remit for their own sales, but most states still count those sales when measuring your $250,000 threshold. Check the Alabama Department of Revenue guidance before excluding them.
- Which rate does an online seller charge in Alabama?
- Alabama sources remote sales to the delivery address, so you charge the buyer's combined state, county, city and district rate, not your own location's rate.
More Alabama guides
Other Alabama rules that change the total.