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Florida vs Alabama Sales Tax: 7.00% vs 9.46%, Nexus 2026

Updated

Reviewed by Nexus by State research team using official state tax sources. Last reviewed .

Compare Florida and Alabama sales tax rates: Florida shows a 7.00% combined state and average local rate with a $100,000 economic nexus threshold, while Alabama shows 9.46% with a $250,000 threshold. This guide focuses on seller sales-tax obligations rather than personal income-tax returns.

MetricFloridaAlabama
Economic nexus threshold$100,000$250,000
Transaction thresholdNoneNone
State rate6.00%4.00%
Avg. local rate1.00%5.46%
Combined state + local7.00%9.46%
Marketplace facilitatorYesYes
Effective since2021-07-012018-10-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in Florida because of its $100,000 threshold. If you cross that first, you register there first.

On rate: Florida is friendlier for customers with a combined state + local rate of 7.00% vs 9.46%.

Neither state has a transaction-count trigger — only the dollar threshold matters.

Florida — nexus note

Florida sales tax nexus and economic nexus threshold: effective July 1, 2021, an out-of-state retailer with no Florida physical presence must register, collect, report, and remit Florida sales tax and discretionary sales surtax once it has taxable remote Florida sales exceeding $100,000 over the previous calendar year. Florida uses a sales-only threshold -- no transaction-count test. Registered marketplace providers collect and remit Florida tax on taxable retail sales they facilitate; marketplace sellers with Florida physical presence or more than $100,000 in taxable remote Florida sales outside the marketplace must register and collect on those outside-marketplace sales.

Alabama — nexus note

Alabama sales/use tax nexus and economic nexus threshold: out-of-state sellers and marketplace facilitators with more than $250,000 in retail sales into Alabama during the previous calendar year must collect Alabama tax, and remote sellers may participate in the Simplified Sellers Use Tax (SSUT) program — a flat 8% sellers use tax on sales delivered into Alabama (Rule 810-6-2-.90.03; SSUT under Act 2015-448). Alabama uses a sales-only threshold — no transaction-count test. The $250,000 calculation counts only the seller's own retail sales; it excludes wholesale sales for resale and any sales made through an SSUT-participating marketplace that already collects Alabama tax. Marketplace facilitators meeting the $250,000 threshold have collected and remitted SSUT on facilitated Alabama sales (or complied with notice/reporting under §40-23-199.2) since January 1, 2019. If you exceed $250,000 in a calendar year, collection begins January 1 of the following year. SSUT participants may deduct a 2% timely-filing discount, capped at $8,000 per month. Alabama Department of Revenue source data last retrieved 2026-06-14.

What to do next

Use the nexus calculator to check exactly which of Florida and Alabama you've already triggered. Then read each state's full guide:

Florida overview →Alabama overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Florida or Alabama?
Florida has the lower economic nexus threshold at $100,000, versus $250,000 in Alabama. A seller's Florida sales would reach the published Florida threshold first. These are the thresholds published by each state's tax authority as of 2026-06-14; confirm against the official source before registering.
Do both Florida and Alabama have marketplace facilitator laws?
Yes. Both Florida and Alabama have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-06-14.
Which has the lower sales tax rate, Florida or Alabama?
Florida has the lower combined state and local sales tax rate at 7.00%, compared with 9.46% in Alabama. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-06-14.
Do I need to register for sales tax in both Florida and Alabama?
It depends on where you cross each state's economic nexus threshold (or have physical presence there). Florida's published threshold is $100,000, and Alabama's is $250,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-06-14.
When did economic nexus take effect in Florida and Alabama?
Florida's economic nexus rule took effect on 2021-07-01, and Alabama's took effect on 2018-10-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

More sales tax comparisons

Selling into more than two states? Compare Florida and Alabama against other major markets for nexus thresholds, rates, and marketplace facilitator rules.

Sources

date_retrieved: Florida 2026-05-22 · Alabama 2026-06-14