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Alabama

Sales Tax Rules

4%
State Rate
11%
Max Combined
Exempt
SaaS
$250k
Nexus Threshold

Full Tax Details

State Sales Tax Rate4%
Max Combined Rate11%
Economic Nexus (Sales)$250,000
Economic Nexus (Transactions)N/A
SaaS TaxableNo
Digital Goods TaxableYes
Groceries ExemptNo
Clothing ExemptNo
Filing FrequencyMonthly, Quarterly, or Annual
Online FilingAvailable

SaaS Tax Details

True SaaS (remote access) is generally not taxable; downloaded software is.

Grocery Details

Groceries are taxed at a reduced state rate of 3% (SNAP eligible).

Official Source

Alabama Department of Revenue

View Official Site →

Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.