Rates verified January 2026 · Source: Alabama Dept. of Revenue

Alabama Sales Tax Calculator 2026

Birmingham 10% · Mobile 10% · Huntsville 9% · AL base 4%

Alabama has a 4% state sales tax but some of the highest combined rates in the country due to city and county additions. Birmingham, Mobile, and Montgomery all reach 10%. Alabama also taxes groceries, creating one of the highest everyday tax burdens in the US.

State guide Shipping rules Grocery tax Reverse formula

Quick answer

Use 10% as the starting Alabama sales tax rate.

The calculator below lets you add tax to a price or remove tax from a receipt total. Pick a city when available, or type the exact local rate from the official source.

State base rate

Average combined

9.24%

Birmingham rate

10% combined

Calculator

City (optional — fills rate)

Sales tax rate — type any % (editable)

Change this anytime — no extra click. Verify final rates with your state or country tax authority.

Amount before tax

Quick amounts

Enter an amount to see the result.

Educational tool only — not tax advice. Confirm rates before filing or pricing for customers.

Alabama combined rates by city — 2026 reference

Birmingham
Jefferson County · State 4% + County 1% + City 4% + Special 1%
10%
Mobile
Mobile County · State 4% + County 1% + City 5%
10%
Montgomery
Montgomery County · State 4% + County 1% + City 4% + Special 1%
10%
Huntsville
Madison County · State 4% + County 0.5% + City 4.5%
9%
Tuscaloosa
Tuscaloosa County · State 4% + County 1% + City 4% + Special 1%
10%
Hoover
Jefferson/Shelby · State 4% + County 1% + City 4%
9%
Dothan
Houston County · State 4% + County 1% + City 4.5%
9.5%
Auburn
Lee County · State 4% + County 0.5% + City 4.5%
9%
Decatur
Morgan County · State 4% + County 0.5% + City 4.5%
9%
Madison
Madison County · State 4% + County 0.5% + City 4.5%
9%

ZIP and district rules can differ. Verify on Alabama Dept. of Revenue.

Formula

How to calculate Alabama sales tax

Multiply the taxable price by the combined state and local rate. Then add the tax amount to the original price to get the final checkout total.

Sales tax formula

Sales tax = item price x (rate / 100)

Final total = item price + sales tax

Enter the item price before tax.
Use the city rate above or type the exact local rate from the official source.
Calculate the sales tax amount and final total instantly.

Example	Formula	Tax	Total
$100 purchase in Birmingham	$100.00 x 10%	$10.00	$110.00
$250 purchase in Mobile	$250.00 x 10%	$25.00	$275.00
Reverse tax from $110 in Birmingham	$110 ÷ 1.10000 ≈ $100.00 pre-tax; about $10.00 was sales tax.	$100.00 before tax	$100.00 before tax

Alabama sales tax examples

Common receipt calculations using high-search city rates.

$100 purchase in Birmingham

$110 total

$100.00 × 10% = $10.00 sales tax in Birmingham, Alabama.

$250 purchase in Mobile

$275 total

$250.00 × 10% = $25.00 sales tax in Mobile, Alabama.

Reverse tax from $110 in Birmingham

$100.00 before tax

$110 ÷ 1.10000 ≈ $100.00 pre-tax; about $10.00 was sales tax.

State rate: 4%

Avg combined: 9.24%

Economic nexus: $250,000 in Alabama sales in the prior calendar year

Filing: Monthly or Quarterly

How Alabama Sales Tax Works

Alabama levies a 4% state sales tax. Cities and counties add aggressively on top, resulting in some of the highest combined sales tax rates in the US. Alabama is also one of the few remaining states that taxes groceries, making everyday shopping more expensive for residents.

Alabama Grocery Tax

Alabama reduced its state grocery tax from 4% to 3% in September 2023. However, local county and city taxes on groceries remain. As of 2026, Alabama is one of only a handful of states still levying any sales tax on unprepared grocery purchases.

Often taxable in Alabama

General merchandise
Electronics
Clothing
Restaurant meals
Groceries (taxed, reduced state rate)

Common exemptions

Prescription drugs
Medical equipment
Agricultural production items

Common mistakes to avoid

Using only the state rate

Alabama's 4% state rate is only the starting point. Birmingham is 10% combined.

Subtracting tax from a gross total

To reverse sales tax, divide by 1 + (rate ÷ 100). Do not subtract the percentage from the tax-inclusive price.

Treating groceries and clothing the same

Exemptions differ by item. Review Alabama rules for food, apparel, medicine, and digital goods before invoicing.

Quoting the average rate for every address

The 9.24% average is useful for estimates; use address-level rates for compliance and customer quotes.

Official Alabama sales tax source

Rates and rules on this page were last reviewed in January 2026 against Alabama Dept. of Revenue. Use the linked authority for filing, registrations, or address-specific compliance.

Rates on this page were compared to Alabama official Department of Revenue publications as of January 2026.
Birmingham is listed at 10% combined (State 4% + County 1% + City 4% + Special 1%). Confirm ZIP-level rates before filing.
Destination-based rules usually apply to shipped orders — use the delivery address rate, not the seller's warehouse rate, unless official guidance says otherwise.

Alabama sales tax — frequently asked questions

What is the Alabama sales tax rate in 2026?

Alabama's state rate is 4%, but combined with county and city taxes, major cities reach 9%–10%. Birmingham, Mobile, Montgomery, and Tuscaloosa are all at 10%.

Does Alabama tax groceries?

Yes. Alabama taxes groceries. Alabama reduced its state grocery tax from 4% to 3% in 2023, but local taxes still apply on food, making Alabama one of the highest grocery-tax states in the US.

Why is Alabama combined sales tax so high?

Alabama allows cities and counties to levy significant local sales taxes. Birmingham's 10% rate reflects 4% state, 1% county, 4% city, and 1% in special district taxes — all stacked.

What is the sales tax rate in Birmingham, AL?

Birmingham uses about 10% combined sales tax (State 4% + County 1% + City 4% + Special 1%). Always verify the current rate for your exact address.

Is clothing taxable in Alabama?

Clothing and footwear are generally taxable in Alabama at the combined state and local rate unless a specific exemption applies.

Does Alabama charge sales tax on online purchases?

Remote sellers and marketplaces that exceed Alabama's economic nexus threshold ($250,000 in Alabama sales in the prior calendar year) generally must collect Alabama sales tax based on the delivery address.

How do I reverse Alabama sales tax from a receipt total?

Divide the tax-inclusive total by 1 plus the combined rate as a decimal. At 9.24% combined: $108 ÷ 1.08 ≈ $100 before tax.

Is shipping taxable in Alabama?

Rules differ by state. See our shipping tax calculator and Alabama Department of Revenue guidance to learn whether delivery, freight, and handling are taxable on your order.

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Use the correct Alabama sales tax rate

Use this page for quick Alabama sales tax estimates, receipt checks, and reverse tax calculations. For the most accurate result, choose the closest city rate or verify the exact address-level rate with the official source, then enter that percentage in the calculator.

Open all-state calculator

Disclaimer: Rates are for informational and educational purposes and may be incomplete or outdated. Always verify with the official Alabama revenue authority or a qualified professional before filing or making business decisions.