Alabama sales tax calculator
Get accurate Alabama sales tax calculations instantly. Whether you're creating invoices, checking receipts, or planning pricing, our free calculator delivers the precise tax figures you need – no downloads, no sign-ups required.
- Calculate exact sales tax for any transaction amount
- Determine the right tax to add to your Alabama prices
- Avoid costly calculation errors and stay compliant
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Alabama Sales Tax Rates
Understanding Alabama's sales tax structure is essential for accurate pricing and compliance. Here are the current rates
- State Sales Tax Rate: 4.00%
- Average Local Tax Rate: 5.44%
- Maximum Combined Tax Rate: 11.00%
- Average Combined Rate: 9.44%
How to Register for Sales Tax in Alabama
Follow these steps to register your business online through the My Alabama Taxes portal. The process is free and takes 3-5 business days. Alabama Business Tax Registration System.
Access the My Alabama Taxes (MAT) Portal
Visit the online portal and create a new account. Log in and select the option to register a new business for sales tax.
Provide Your Business Information
Fill out the required fields with your business details, including your legal name, FEIN, and addresses.
Submit and Receive Your Account Number
Submit your application online at no cost. After a 3-5 days, you will receive your official sales tax account number.
Alabama Tax Filing Deadlines
Your business's filing frequency is assigned by the Alabama Department of Revenue based on your tax liability. It is critical to file a return for every period on time—even those with no sales—to avoid penalties. Electronic payments must be submitted by 4 p.m. Central Time on the due date.
- Monthly: Returns are due by the 20th of the month after the sales period ends.
- Quarterly: Due by the 20th after the quarter ends. Deadlines are Apr 20, Jul 20, Oct 20, & Jan 20.
- Semiannual: Your two deadlines are July 20 (for Jan-Jun) and January 20 (for Jul-Dec).
- Annual: Your return for the entire previous year is due by January 20.
Local tax rates vary significantly across Alabama's counties and cities.
State rate remains fixed at 4%, local rates can range from 0% to 7%, resulting in combined rates between 4% and 11% depending on location.
Alabama's Sales Tax Due Date Calendar
Simplify Alabama Sales Tax with Xero
Xero automates your entire Alabama sales tax process. It automatically applies correct tax rates to every invoice and generates compliant, one-click reports for filing. Eliminate spreadsheet errors, ensure accuracy, and spend more time focusing on growing your business instead of on tax compliance.
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FAQs on Xero’s sales tax calculator
Common exemptions include prescription medications, certain agricultural supplies, and manufacturing equipment. Check with the Alabama Department of Revenue for a complete list of exemptions specific to your business.
Common exemptions include prescription medications, certain agricultural supplies, and manufacturing equipment. Check with the Alabama Department of Revenue for a complete list of exemptions specific to your business.
Yes, if you have nexus in Alabama through physical presence, economic activity exceeding $250,000 in sales, or other connections to the state.
Yes, if you have nexus in Alabama through physical presence, economic activity exceeding $250,000 in sales, or other connections to the state.
Filing frequency depends on your tax liability – most small businesses file monthly, but you may qualify for quarterly or annual filing based on your sales volume.
Filing frequency depends on your tax liability – most small businesses file monthly, but you may qualify for quarterly or annual filing based on your sales volume.
Operating without required registration can result in penalties, interest charges, and potential criminal prosecution for willful non-compliance.
Operating without required registration can result in penalties, interest charges, and potential criminal prosecution for willful non-compliance.
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