Alabama Sales & Use Tax

Alabama levies a 4% state sales tax on all purchases of tangible personal property unless the transaction is specifically exempted. There are more than 200 city and county sales taxes imposed in addition to the 4% state sales tax rate. Alabama’s range of sales tax rates is between 4% and 11%. The average combined sales tax rate is 9.25%.

Use tax (same rate) is imposed on tangible personal property brought into Alabama for storage, use, or consumption in the state when the seller did not collect seller’s use tax on the sale of the property. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. 

Alabama provides exemption opportunities for the following industries: 

• Manufacturing
• High Technology
• Healthcare

Statute for Refunds: 36 Months

Utility Exemption: Yes, predominant use for water (over 50%); apportionment use for electricity used in electrolytic or electrothermal manufacturing/compounding and certain natural gas used as a raw material/component or in chemical conversion.

Alabama Sales & Use Tax State Links

• AL Sales & Use Tax Page
• AL Sales & Use Tax Statutes
• AL Sales & Use Tax Rules
• AL Sales & Use Tax Forms

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