How Alabama Sales Tax Works
Alabama's state government imposes a 4.00% sales tax on most retail purchases. Counties, cities, and special districts can layer additional local sales tax on top — pushing combined rates to a population-weighted average of 9.29% statewide.
Alabama has the 5th-highest combined state and local sales tax in the country, driven by aggressive local rates rather than the moderate 4% state rate.
Groceries in Alabama
Alabama reduced its state grocery tax to 3% in 2023, with a path toward 2%; localities can still add their own rate on groceries.
How Alabama Compares to Neighboring States
Sales tax on a $1,000.00 purchase in Alabama versus neighboring states, using each state's average combined rate (state + local):
| State | State Rate | Combined Rate | Tax on $1,000 | vs. Alabama |
|---|---|---|---|---|
| Alabama (here) | 4.00% | 9.29% | $92.90 | — |
| Florida | 6.00% | 7.00% | $70.00 | -$22.90 |
| Georgia | 4.00% | 7.40% | $74.00 | -$18.90 |
| Tennessee | 7.00% | 9.55% | $95.50 | +$2.60 |
| Mississippi | 7.00% | 7.06% | $70.60 | -$22.30 |
A negative "vs." figure means a lower sales tax bill on the same purchase. Specific addresses can vary materially from the state-wide average.
Frequently Asked Questions
What is the Alabama sales tax rate for 2026?
Alabama's state sales tax rate is 4.00% for 2026. When combined with the average local sales tax of 5.29%, most Alabama residents pay a typical combined rate of 9.29%.
How much sales tax will I pay on a $100 purchase in Alabama?
On a $100 purchase, expect approximately $4.00 in state sales tax, or about $9.29 including average local sales tax (combined 9.29%). Total cost: roughly $109.29.
Are groceries taxed in Alabama?
Alabama reduced its state grocery tax to 3% in 2023, with a path toward 2%; localities can still add their own rate on groceries.
Is sales tax calculated before or after discounts in Alabama?
Alabama follows the standard rule used by virtually all states: sales tax is calculated on the final discounted price, not the original price. If a $200 item is on sale for $150, you pay sales tax on $150. Manufacturer coupons can be treated differently in some states.
How is this Alabama sales tax estimate calculated?
The calculator applies Alabama's 4.00% state sales tax rate plus whatever local rate you enter (city + county + special districts). The default Local Rate is 0%; click a city in the table above to fill in its local portion, or look up your specific address with Alabama's Department of Revenue tool.