Alabama sales tax Calculator

Alabama's state sales tax rate is 4%, but local county and city taxes add significantly on top — often 4% to 6% more. Most major Alabama cities have combined rates of 9% to 10%. Birmingham and Montgomery typically reach 10%, while more rural areas may be 7% to 8%. Alabama has over 400 distinct taxing jurisdictions, making it one of the most complex states for sales tax.

Yes. Alabama is one of the few states that taxes most groceries at the full combined sales tax rate. This includes most unprepared food sold at grocery stores. There is a state-level effort to reduce or eliminate the grocery tax, but as of 2026 Alabama still taxes most food purchases, which is a significant burden given the high combined local rates.

Yes. Alabama holds two annual sales tax holidays. The back-to-school holiday falls on the third Friday through Sunday of July — covering clothing under $100 per item, school supplies under $50, and computers under $750. A Severe Weather Preparedness holiday is held the last weekend of February for emergency supplies.

Birmingham is in Jefferson County. The combined rate depends on the exact location within the city — the standard combined rate is approximately 10%, consisting of the 4% state rate plus Jefferson County and City of Birmingham local taxes. Some special districts within Birmingham may have slightly different rates.

Yes. Alabama charges sales tax on used vehicle purchases. The rate varies by county since local taxes apply. However, Alabama caps the sales tax on vehicle purchases at $1 on vehicles purchased from a dealer — a significant consumer protection. Private party vehicle purchases are subject to the state's 2% rate without the cap.

Alabama's high combined rates stem from its low state property tax base — Alabama has some of the lowest property taxes in the nation. Local governments rely heavily on sales taxes to fund schools, infrastructure, and services, resulting in some of the highest local sales tax additions in the country.