The Sales tax calculator can be used for easy Reverse sales tax calculation and regular Alabama sales tax calculation. Simple information such as the amount before tax and tax rate needs to be entered to immediately get Sales tax results which would otherwise be too much work if calculated manually. The same is for Reverse sales tax quick calculation by simply entering the amount before tax and tax rate. Alabama State has a state sales tax rate of 4%. On top of that, various counties levy local income tax that adds to raise total sales tax up to 9.24%.
Are you bothering with Sales Tax as a seller in Alabama? Looking for an accurate tool to determine the applicable sales tax for in Alabama? Then our Alabama Sales Tax Calculator is just for you.
Its dual functioning is something rarely found. You have an ability to calculate the "amount after sales tax" of a product, or you can work the other way around to calculate the net price (amount before tax) of a product using the Reverse Sales Tax Calculation Method. So you have two functions in a single tool.
Wondering how to use our Alabama Sales Tax Calculator? Well! Just continue reading and let us explain everything to you.
Alabama Sales Tax is a privilege tax charged on the retail sale of taxable items sold in Alabama by businesses located in Alabama. The Business owners are responsible for collecting, managing, and transferring the sales tax Alabama Department of Revenue while remaining in compliance with state laws and avoid penalties and interest.
The sales tax depend on three factors:
To calculate Sales Tax in Alabama, follow the steps below:
You, as a Business owner, are only required to collect sales tax in Alabama if you have Sales Tax Nexus in the Yellowhammer State. And to determine your Nexus in Alabama, you must have any of the following:
Once you have determined that your Nexus is with Alabama, next is to deduce the Sales Tax rate (State + Local Sales Tax) applicable on your product, for which you can refer the tables below:
The General Sales Tax rate is Alabama is 4%. Besides, many cities and counties levy additional local sales tax on taxable goods and services. Following are the Sales Tax rate on State, County, and city-level in for 100 largest cities in Alabama:
City | State Rate | County + City Rate | Total Sales Tax |
---|---|---|---|
Alabaster | 4.00% | 5.00% | 9.00% |
Albertville | 4.00% | 5.00% | 9.00% |
Alexander City | 4.00% | 6.00% | 10.00% |
Andalusia | 4.00% | 6.00% | 10.00% |
Anniston | 4.00% | 6.00% | 10.00% |
Arab | 4.00% | 5.00% | 9.00% |
Athens | 4.00% | 5.00% | 9.00% |
Atmore | 4.00% | 6.00% | 10.00% |
Attalla | 4.00% | 6.00% | 10.00% |
Auburn | 4.00% | 5.00% | 9.00% |
Bay Minette | 4.00% | 6.00% | 10.00% |
Bessemer | 4.00% | 6.00% | 10.00% |
Birmingham | 4.00% | 6.00% | 10.00% |
Boaz | 4.00% | 5.00% | 9.00% |
Brewton | 4.00% | 6.00% | 10.00% |
Calera | 4.00% | 5.00% | 9.00% |
Center Point | 4.00% | 6.00% | 10.00% |
Chelsea | 4.00% | 6.00% | 10.00% |
Chickasaw | 4.00% | 6.00% | 10.00% |
Clanton | 4.00% | 6.00% | 10.00% |
Clay | 4.00% | 6.00% | 10.00% |
Cullman | 4.00% | 5.00% | 9.00% |
Daphne | 4.00% | 5.50% | 9.50% |
Decatur | 4.00% | 5.00% | 9.00% |
Demopolis | 4.00% | 5.00% | 9.00% |
Dothan | 4.00% | 5.00% | 9.00% |
Enterprise | 4.00% | 5.00% | 9.00% |
Eufaula | 4.00% | 5.50% | 9.50% |
Fairfield | 4.00% | 6.00% | 10.00% |
Fairhope | 4.00% | 5.00% | 9.00% |
Florence | 4.00% | 5.50% | 9.50% |
Foley | 4.00% | 6.00% | 10.00% |
Fort Payne | 4.00% | 5.00% | 9.00% |
Fultondale | 4.00% | 6.00% | 10.00% |
Gadsden | 4.00% | 6.00% | 10.00% |
Gardendale | 4.00% | 6.00% | 10.00% |
Greenville | 4.00% | 6.00% | 10.00% |
Gulf Shores | 4.00% | 6.00% | 10.00% |
Guntersville | 4.00% | 5.00% | 9.00% |
Hamilton | 4.00% | 5.00% | 9.00% |
Hartselle | 4.00% | 5.00% | 9.00% |
Helena | 4.00% | 5.00% | 9.00% |
Homewood | 4.00% | 6.00% | 10.00% |
Hoover | 4.00% | 5.50% | 9.50% |
Hueytown | 4.00% | 6.00% | 10.00% |
Huntsville | 4.00% | 5.00% | 9.00% |
Irondale | 4.00% | 6.00% | 10.00% |
Jacksonville | 4.00% | 6.00% | 10.00% |
Jasper | 4.00% | 5.00% | 9.00% |
Lanett | 4.00% | 6.00% | 10.00% |
Leeds | 4.00% | 6.00% | 10.00% |
Lincoln | 4.00% | 6.00% | 10.00% |
Madison | 4.00% | 5.00% | 9.00% |
Midfield | 4.00% | 6.00% | 10.00% |
Millbrook | 4.00% | 4.50% | 8.50% |
Mobile | 4.00% | 6.00% | 10.00% |
Monroeville | 4.00% | 5.00% | 9.00% |
Montevallo | 4.00% | 6.00% | 10.00% |
Montgomery | 4.00% | 6.00% | 10.00% |
Moody | 4.00% | 6.00% | 10.00% |
Muscle Shoals | 4.00% | 5.00% | 9.00% |
Northport | 4.00% | 6.00% | 10.00% |
Oneonta | 4.00% | 6.00% | 10.00% |
Opelika | 4.00% | 5.00% | 9.00% |
Opp | 4.00% | 6.00% | 10.00% |
Orange Beach | 4.00% | 6.00% | 10.00% |
Oxford | 4.00% | 3.00% | 7.00% |
Ozark | 4.00% | 5.00% | 9.00% |
Pelham | 4.00% | 5.00% | 9.00% |
Pell City | 4.00% | 6.00% | 10.00% |
Phenix City | 4.00% | 5.50% | 9.50% |
Pike Road | 4.00% | 4.75% | 8.75% |
Pinson | 4.00% | 6.00% | 10.00% |
Pleasant Grove | 4.00% | 6.00% | 10.00% |
Prattville | 4.00% | 2.00% | 6.00% |
Prichard | 4.00% | 6.00% | 10.00% |
Rainbow City | 4.00% | 5.00% | 9.00% |
Roanoke | 4.00% | 6.00% | 10.00% |
Robertsdale | 4.00% | 5.00% | 9.00% |
Russellville | 4.00% | 5.00% | 9.00% |
Saraland | 4.00% | 6.00% | 10.00% |
Satsuma | 4.00% | 6.00% | 10.00% |
Scottsboro | 4.00% | 5.00% | 9.00% |
Selma | 4.00% | 6.00% | 10.00% |
Sheffield | 4.00% | 5.00% | 9.00% |
Southside | 4.00% | 2.00% | 6.00% |
Spanish Fort | 4.00% | 4.50% | 8.50% |
Sylacauga | 4.00% | 4.00% | 8.00% |
Talladega | 4.00% | 6.00% | 10.00% |
Tallassee | 4.00% | 1.00% | 5.00% |
Tarrant | 4.00% | 6.00% | 10.00% |
Troy | 4.00% | 3.50% | 7.50% |
Trussville | 4.00% | 6.00% | 10.00% |
Tuscaloosa | 4.00% | 6.00% | 10.00% |
Tuscumbia | 4.00% | 5.00% | 9.00% |
Tuskegee | 4.00% | 7.50% | 11.50% |
Valley | 4.00% | 6.00% | 10.00% |
Vestavia Hills | 4.00% | 6.00% | 10.00% |
Wetumpka | 4.00% | 5.00% | 9.00% |
Following is the list of Sales Tax rates applied to different product categories levied on State level. These rates don't include local sales taxes but are also due, and these rates vary. You can refer to the comprehensive list of state tax rates by Alabama Revenue department or see the tables below:
Tax Type | Rate Type | Rate |
---|---|---|
CONSUMERS USE | AUTO | 2.000% |
CONSUMERS USE | FARM | 1.500% |
CONSUMERS USE | GENERAL | 4.000% |
CONSUMERS USE | MFG. MACHINE | 1.500% |
LODGINGS TAX | GENERAL (MOUNTAIN LAKES AREA) | 5.000% |
LODGINGS TAX | GENERAL (ALL OTHER AREAS) | 4.000% |
RENTAL TAX | AUTO | 1.500% |
RENTAL TAX | LINENS/GARMENTS | 2.000% |
RENTAL TAX | GENERAL | 4.000% |
SALES TAX | AUTO | 2.000% |
SALES TAX | FARM | 1.500% |
SALES TAX | GENERAL \ AMUSEMENT | 4.000% |
SALES TAX | MFG. MACHINE | 1.500% |
SALES TAX | VENDING (FOOD PRODUCTS) | 3.000% |
SALES TAX | VENDING (ALL OTHER) | 4.000% |
SELLERS USE | AUTO | 2.000% |
SELLERS USE | FARM | 1.500% |
SELLERS USE | GENERAL | 4.000% |
SELLERS USE | MFG. MACHINE | 1.500% |
Note:
After the determination of the Sales Tax rate according to the location and product category, it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.
Example # 1:
For instance, you are selling a shirt on your store in Alabaster, Alabama, having a net price tag of $10. The amount that a buyer has to pay (including sales tax) on a cash counter would be:
Manual Method:
Net Price (amount before Tax) of a shirt: $10
Total Sales Tax rate: 4% (Alabama State) + 1% (Shelby County) + 4% (Alabaster) = 9%
Total Sales Tax amount = $10 x 9% = $0.9
Gross Price (Amount after Tax) = 10 + 0.9 = $10.9
It means the amount the buyer has to pay for a shirt on a cash counter would be $10.9.
Using our Sales Tax Calculator:
All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:
Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:
In the example above, we have explained to you to calculate the Sales Tax amount payable in a product, and the Gross Price of the Product.
But there are also instances when you are required to deduce how much sales tax buyer has actually paid on a product or you may want to check the accuracy of the sales tax indicated on your item's receipt.
This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our Alabama Sales Tax Calculator can perform this calculation like a Pro.
Example:
Your buyer has paid $50 for a pair of running shoes at your store in Homewood, Alabama. Now the buyer is inquiring how much the running shoe actually cost before the sales tax was added. So you need to follow the steps below to determine the amount before tax (net price) of a running shoe:
Gross Price (Amount after Tax) of Running Shoe: $50
Total Sales Tax rate: 4% (Alabama State) + 2% (Jefferson County) + 4% (Homewood) = 10%
Manual Method:
Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]
50 = [Net Price x ((10/100) + 1)]
50 = Net Price x 1.1
$45.45 = Net Price
So the original Price (net price) of the running shoes was $45.45.
Using our Sales Tax Calculator:
You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the above mentioned manual method. All you need is:
Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the above image.
Answer: Alabama levies 4% of Sales Tax of State level. Several cities and counties in Alabama also collect additional Local Sales Tax.
Answer: In Mobile City, Alabama, the Total Sales Tax rate is 10%, which includes 4.5% of Mobile City Sales Tax, 1.5% of Mobile County Sales tax, and 4% of Alabama State Sales Tax.
Answer: Services are generally not taxable for Sales Tax except the services include creating or manufacturing a product.
Answer: The sellers use tax is equal to the combined sales tax rate of 4% on State level as well as local taxes depending on the county and city in Alabama.
Answer: Fertilizer, Livestock feed, Prescription drugs, gasoline and motor oil, seeds, labor to repair, or install property (if billed separately) are among products that are exempted from Sales Tax.