Alabama Sales Tax Guide for E-Commerce Retailers
Fast Facts About Alabama Sales Tax
| Alabama state sales tax rate | 4% |
| Does Alabama have local sales tax rates? | Yes |
| Alabama taxing authority | Department of Revenue |
| Alabama sales tax questions phone number | 334-242-1584 |
Am I required to collect sales tax in Alabama?
Businesses that have an employee, location (including inventory in a warehouse), or who do other business in the state are required to register for a sales tax permit and collect sales tax from buyers in Alabama.
E-commerce businesses with economic nexus in Alabama are also required to register and collect.
You have economic nexus in Alabama if you made more than $250,000 in sales to buyers in Alabama in the previous calendar year.
How to Register for an Alabama Sales Tax Permit
Register for an Alabama sales tax permit online at the Alabama Department of Revenue My Alabama Taxes page.
Need help? Contact us for help with your Alabama sales tax registration.
How to Collect Alabama Sales Tax
Alabama is a destination-based sales tax state. This means that whenever you make a sale to a buyer in Alabama you are required to collect the sales tax rate (state + any local sales tax) at the buyer’s location.
For example, say you live in Mississippi but make a sale to a buyer in Alabama. You’d be required to charge the Georgia state rate, plus any local city, county and special taxing district rates to your buyer.
Learn more about origin and destination-based sales tax sourcing here. Learn more about how to collect the right amount of state plus local sales tax here.
Is shipping taxable in Alabama?
No, as long as the shipping charges are separately stated on the invoice then the shipping charges your customers pay to transport the item are not taxable in Alabama.
Alabama Sales Tax Due Dates
Alabama sales tax is due the 20th day of the month following the filing period end date.
For example, a monthly sales tax return for tax collected in the month of January 2025 would be due February 20, 2025.
How to File Sales Tax in Alabama
When your Alabama sales tax due date rolls around, you can either file yourself online or let a partner like HOST take this onerous task off your plate.
Learn more about handing off your sales tax filings to HOST here!
More about Alabama Sales Tax
Learn more about Alabama sales tax at the Alabama Department of Revenue.