Sales Tax and Reverse Sales Tax Calculator Alabama

ALABAMA [Multidirectional Calculator]
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  • Amount Before Tax ${{amountBeforeTax}}
  • Sales Tax Rate {{SalesTaxRate}}%
  • Amount Of Taxes ${{AmountOfTaxes}}
  • Amount After Taxes ${{AmountAfterTaxes}}



AL Sales Tax Calculator: User Guide

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 Facts:

  • The General Sales Tax rate in Alabama State is 4%.
  • Cities and/or municipalities of Alabama charges additional Sales tax at a rate ranging between 0 and 9%.
  • 391 out of 873 zip codes and 188 out of 596 cities in Alabama charges City Sales Tax in Alabama.
  • The smallest possible Sales tax rate (combined) is 4%, which is charged in Cardiff, Alabama.
  • The highest possible Sales tax rate (combined) is 11.5%, which is charged in Tuskegee, Alabama.
  • The average combined rate for every ZIP code in Alabama is 7.78%, which is ranked 9th highest across the nation.
  • Unlike many other states, Alabama doesn't exempt groceries and food from the state sales tax.
  • Most Prescription Drugs are exempt from the Alabama sales tax.
  • The Sales tax rate in Alabama is lower than 94.2% of states in the US.
  • Alabama State has two Sales Tax Holidays: Back-to-School and Severe Weather Preparedness.
  • 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.
  • Sales to the government, schools, city, and county-owned hospitals and specific nonprofits entities are exempted from Sales Tax.
  • Alabama State only requires collecting sales tax from all tangible, physical products being sold to a consumer. However, items intended for use in agricultural pursuits or industries are exempted.

How to calculate Alabama Sales Tax?

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:

  1. Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
  2. Location and Products or Service: The sales tax rate varies from product to product and location to location, so you must check the sales tax rate applicable to your product according to the product category, county, and city in Alabama.
  3. Exemptions: Not all goods are eligible for sales tax regulation, so you should check with Alabama state government as to which goods and services sold in Alabama are subject to sales tax.

To calculate Sales Tax in Alabama, follow the steps below:


Step 1 – Determine your Nexus:

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:

  • A place of business or an office in Alabama like a retail store
  • A warehouse or inventory stored in the Alabama state
  • The regular presence of traveling salespeople or other agents in AL
  • Remote entity nexus
  • Economic nexus (i.e., your sales or transactions into the Alabama state mean you are subject to Alabama's economic nexus rule)

Step 2 – Determine the Sales Tax Rate:

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:


Alabama Sales Tax Rates by Location:

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:

Sales Tax Rates Alabama(Updated December 2019)
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%

Alabama State Sales Tax Rates by Product Category:

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:

Alabama-AL SalesTax Rates by Product Category
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:

  • Some products, including prescription drugs, gasoline and motor oil items, etc. are exempted from Sales Tax under Alabama Sales and Use tax law. You can find the details here.

Step 3 – Calculate Sales Tax:

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:

  1. Input the $10 Net Price of Shirt as Amount Before Tax
  2. Input or select 9% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:

alabama-sales-tax-calculator

Reverse Sales Tax Calculation

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:

  1. Input the $50 Gross Price of Running Shoe as Amount after Tax
  2. Input or select 10% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the above image.

Also Check: Paycheck Calculator Alabama to Calculate your Paycheck in Alabama State including all taxes and take home pay.

FAQs

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.

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