Georgia vs Alabama Sales Tax: 7.49% vs 9.46%, Nexus 2026
Reviewed by Nexus by State research team using official state tax sources. Last reviewed .
Compare Georgia and Alabama sales tax rates: Georgia shows a 7.49% 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.
| Metric | Georgia | Alabama |
|---|---|---|
| Economic nexus threshold | $100,000 | $250,000 |
| Transaction threshold | 200 | None |
| State rate | 4.00% | 4.00% |
| Avg. local rate | 3.49% | 5.46% |
| Combined state + local | 7.49% | 9.46% |
| Marketplace facilitator | Yes | Yes |
| Effective since | 2020-01-01 | 2018-10-01 |
Which state is easier for sellers?
For low-revenue sellers: nexus triggers first in Georgia because of its $100,000 threshold. If you cross that first, you register there first.
On rate: Georgia is friendlier for customers with a combined state + local rate of 7.49% vs 9.46%.
Georgia also adds a 200-transaction trigger that Alabama doesn't have.
Georgia — nexus note
Economic nexus triggers at more than $100,000 in gross revenue from Georgia retail sales OR 200 or more separate retail sales in the previous or current calendar year. Remote sellers must collect state and applicable local sales tax.
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 Georgia and Alabama you've already triggered. Then read each state's full guide:
Frequently asked questions
- Which state has the lower sales tax nexus threshold, Georgia or Alabama?
- Georgia has the lower economic nexus threshold at $100,000, versus $250,000 in Alabama. A seller's Georgia sales would reach the published Georgia 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 Georgia and Alabama have marketplace facilitator laws?
- Yes. Both Georgia 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, Georgia or Alabama?
- Georgia has the lower combined state and local sales tax rate at 7.49%, 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 Georgia and Alabama?
- It depends on where you cross each state's economic nexus threshold (or have physical presence there). Georgia's published threshold is $100,000 or 200 transactions, 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 Georgia and Alabama?
- Georgia's economic nexus rule took effect on 2020-01-01, 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 Georgia and Alabama against other major markets for nexus thresholds, rates, and marketplace facilitator rules.
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More Alabama comparisons
Sources
date_retrieved: Georgia 2026-05-27 · Alabama 2026-06-14
- Georgia: https://dor.georgia.gov/
- Georgia: https://dor.georgia.gov/taxes/sales-use-tax/out-state-sellers
- Georgia: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- Georgia: https://taxfoundation.org/data/all/state/sales-tax-rates/
- Alabama: https://www.revenue.alabama.gov/
- Alabama: https://www.revenue.alabama.gov/sales-use/simplified-sellers-use-tax-ssut/
- Alabama: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- Alabama: https://taxfoundation.org/data/all/state/sales-tax-rates/