Alabama Sales Tax (2026)
Alabama's state sales tax is 4%, and the average combined rate with local taxes is 9.46%.
Alabama sales tax at a glance
| State rate | 4% |
|---|---|
| Average local rate | 5.46% |
| Average combined rate | 9.46% |
| Highest local add-on | 8% |
| Groceries | Reduced state rate 2% (since 2025-09-01); local food taxes also apply. State 2% was suspended 2026-05-01 to 2026-06-30 only |
| Clothing | Taxable (annual July back-to-school holiday) |
| Vehicles | Reduced state automotive rate 2% of net price after trade-in (vs 4% general); local automotive rates also apply |
Sales tax on common purchases (9.46%)
| Price | Tax | Total |
|---|---|---|
| $20 | $1.89 | $21.89 |
| $100 | $9.46 | $109.46 |
| $500 | $47.30 | $547.30 |
| $1,000 | $94.60 | $1094.60 |
| $30,000 | $2838.00 | $32838.00 |
2026 changes
- 2026-05-01: 2% state tax on food suspended through 2026-06-30 (Act 2026-604 / HB 527); local food taxes unaffected
- 2026-07-01: 2% state food rate back in effect
Sources: taxfoundation.org · revenue.alabama.gov · revenue.alabama.gov · revenue.alabama.gov · alison.legislature.state.al.us
Frequently asked questions
What is the sales tax rate in Alabama?
The state rate is 4%. With local taxes, the average combined rate is 9.46%, and local add-ons can reach 8%.
Are groceries taxed in Alabama?
Reduced state rate 2% (since 2025-09-01); local food taxes also apply. State 2% was suspended 2026-05-01 to 2026-06-30 only
Is clothing taxed in Alabama?
Taxable (annual July back-to-school holiday)
How are car purchases taxed in Alabama?
Reduced state automotive rate 2% of net price after trade-in (vs 4% general); local automotive rates also apply