- Alabama’s statewide sales tax rate is 4%, with additional local taxes varying by location.
- Sales tax applies to tangible personal property and certain services; examples include clothing, prewritten software, and non-prescription drugs.
- Nexus is established by physical presence or $250,000+ in sales (economic nexus) in the previous year.
- Exemptions include most services, qualifying agricultural items, prescription drugs, and sales to certain entities with proper exemption certificates.
- Filing and payment are primarily done electronically through My Alabama Taxes (MATS); payments of $750 or more must be made electronically.
Source: sovos.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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