Sales tax by state · Alabama
Alabama Sales Tax Rate
The statewide sales tax in Alabama is 4%, the 21st-highest statewide rate (tied with 4 other states). With local taxes added, shoppers in Birmingham pay 10%. Here’s how that compares nationally and what you pay in the state’s major cities.
- Alabama state rate 4% statewide base rate
- National rank 21st of 51, highest first
- Birmingham combined 10% state + local, ZIP 35203
- Tax on $100 $10.00 in Birmingham
Sales tax in Alabama
Alabama charges a statewide sales tax of 4%, 1.02 percentage points below the 5.02% average across all states. Counties, cities and special districts can add their own taxes on top, so the total at the register is usually higher than the state rate.
Combined rates in Alabama’s major cities
The combined rate for one downtown ZIP code in each city, broken down by who charges it:
| City | State | County | City | Special | Combined |
|---|---|---|---|---|---|
| Birmingham 35203 | 4% | 1% | 4% | 1% | 10% |
| Montgomery 36104 | 4% | 2.5% | 3.5% | 0% | 10% |
What sales tax adds in Birmingham
At the 10% combined rate in Birmingham, sales tax adds:
For any other address in Alabama, enter its ZIP code in the sales tax calculator to get the exact combined rate.
How Alabama compares
Among all 51 states and DC, Alabama’s 4% is the 21st-highest statewide rate (tied with 4 other states). The average statewide rate is 5.02%, and the highest is California’s 7.25%. See every state ranked on sales tax by state.
Alabama sales tax — FAQ
What is the sales tax rate in Alabama?
The statewide sales tax rate in Alabama is 4%. That is the 21st-highest statewide rate (tied with 4 other states) and 1.02 percentage points below the 5.02% average across all states. Local taxes can add more depending on where you shop.
What is the sales tax in Birmingham, Alabama?
The combined sales tax rate in downtown Birmingham (ZIP 35203) is 10%: 4% state, 1% county, 4% city, 1% special district. Rates in other parts of the city can differ.
How do I calculate sales tax in Alabama?
Multiply the price by the combined rate where you buy. In Birmingham, a $100 purchase carries $10.00 in tax (10%), for $110.00 total. For any other location, enter the ZIP code in the sales tax calculator.
Is Alabama's sales tax high compared with other states?
Among all 51 states and DC, Alabama’s 4% is the 21st-highest statewide rate (tied with 4 other states), 1.02 percentage points below the 5.02% average across all states. The highest is California’s 7.25%.
Rates as of September 2026. City rates are for one downtown ZIP code and can differ elsewhere in the city.
Data: State departments of revenue, via APIVerve. Our tables, charts and text are licensed CC BY 4.0: reuse them freely, including commercially, as long as you credit us. Cite as: Digest Your Finances, “Sales Tax by State”, https://digestyourfinances.com/studies/sales-tax-by-state/alabama/ — based on State departments of revenue. CC BY 4.0.
