The formulas
- Sales tax = sale x (4% + local rate)
- Nexus when counted sales are more than $250,000 in the previous calendar year
- Counted sales = direct sales only
How it works
Figures current as of November 2026.
The state general rate is 4 percent. The tool multiplies the sale amount by the statewide base rate plus the local rate you enter (county and city sales tax for the delivery address) and shows the state and local parts separately. The local rate depends on where the goods are delivered.
A seller with no physical presence in Alabama must register and collect once it has more than $250,000 of retail sales of tangible personal property into Alabama in the previous calendar year. Sales made through a marketplace facilitator do not count toward your own Alabama threshold; only your direct sales count.
An eligible remote seller can instead join the Simplified Sellers Use Tax program and collect a flat 8 percent on every Alabama sale in place of the state and local rates.
A seller with a physical presence in Alabama, such as staff, an office or inventory, must collect regardless of the threshold. The tool does not decide whether a product is taxable or exempt; enter the taxable price.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the Alabama sales tax rate?
The state general rate is 4 percent. Local rates are added on top by delivery address.
What is the Alabama economic nexus threshold?
More than $250,000 of retail sales of tangible personal property into Alabama in the previous calendar year.
Do marketplace sales count toward the Alabama threshold?
Sales made through a marketplace facilitator do not count toward your own Alabama threshold; only your direct sales count.
Sources
- Alabama Department of Revenue, State Sales and Use Tax Rates
- Alabama Department of Revenue, Simplified Sellers Use Tax (SSUT)
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.