Alabama sales tax rates (July 1, 2026)
| State rate | 4.00% |
|---|---|
| Average local rate | 5.46% (population-weighted; your address may differ) |
| Average combined rate | 9.46% |
| Rank among the 50 states and DC | 5 of 51, where 1 is the highest combined rate |
The 4.00% state rate applies everywhere in Alabama; local rates vary by city, county and special district, which is why the calculator lets you switch between the statewide average and your own local rate. For deliveries, the rate at the delivery address usually applies.
Sales tax on common purchases in Alabama
| Purchase | State tax only (4.00%) | Tax at 9.46% | Total |
|---|---|---|---|
| $10 | $0.40 | $0.95 | $10.95 |
| $25 | $1.00 | $2.37 | $27.37 |
| $50 | $2.00 | $4.73 | $54.73 |
| $100 | $4.00 | $9.46 | $109.46 |
| $250 | $10.00 | $23.65 | $273.65 |
| $500 | $20.00 | $47.30 | $547.30 |
| $1,000 | $40.00 | $94.60 | $1,094.60 |
| $5,000 | $200.00 | $473.00 | $5,473.00 |
Worked example: a $250 purchase
Combined rate = 4.00% state + 5.46% average local = 9.46%
Sales tax = $250 × 0.0946 = $23.65 ($10.00 state, $13.65 local)
Total = $250 + $23.65 = $273.65
To back the tax out of a receipt total, divide by 1 plus the rate: $273.65 ÷ 1.0946 ≈ $250.00. The reverse sales tax calculator does this for any rate.
Alabama compared with nearby states
| State | State rate | Avg. local | Combined | Tax on $250 |
|---|---|---|---|---|
| Alabama | 4.00% | 5.46% | 9.46% | $23.65 |
| Mississippi | 7.00% | 0.06% | 7.06% | $17.65 |
| Tennessee | 7.00% | 2.61% | 9.61% | $24.03 |
| Georgia | 4.00% | 3.56% | 7.56% | $18.90 |
| Florida | 6.00% | 0.98% | 6.98% | $17.45 |
Average combined rates are lower in Florida, Mississippi and Georgia. Before shopping across the border, note that states with a sales tax also charge use tax on taxable goods bought elsewhere and brought home untaxed, and vehicles are taxed where they are registered.
What's taxed and what's exempt in Alabama
- Groceries are taxed at a reduced 2% state rate since September 1, 2025 (local taxes still apply), and the state food tax was suspended from May 1 to June 30, 2026.
- The July 17–19, 2026 back-to-school holiday exempted clothing up to $156 an item, computers up to $1,173 and school supplies up to $78 from state tax, and many localities joined in.
Frequently asked questions
What is the sales tax rate in Alabama in 2026?
The state rate is 4.00%. Cities, counties and districts add an average of 5.46%, for a combined average of 9.46% as of July 1, 2026.
How much is the sales tax on $100 in Alabama?
About $9.46 at the 9.46% average combined rate, for a total of $109.46. The 4.00% state share alone is $4.00.
How does Alabama's sales tax compare with other states?
Alabama ranks 5 of 51 for combined state and average local sales tax, where 1 is the highest. Nearby, Florida (6.98%), Mississippi (7.06%) and Georgia (7.56%) are lower. Tennessee (9.61%) is higher.
Do I pay Alabama sales tax on online orders?
Yes, in most cases. Larger online sellers and marketplaces collect Alabama sales tax based on the delivery address. If a seller doesn't, Alabama residents owe use tax at the same rate on taxable items, usually reported on the state income tax return.
What else should shoppers know about sales tax in Alabama?
Groceries are taxed at a reduced 2% state rate since September 1, 2025 (local taxes still apply), and the state food tax was suspended from May 1 to June 30, 2026.
Rates are averages for planning — not tax advice. Source: Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (rates as of July 1, 2026). Local rates vary by address and can change during the year; the Alabama revenue department publishes the official rate for each location.