Alabama Sales Tax Nexus & Economic Nexus Threshold (2026)
Reviewed by Nexus by State research team using official state tax sources. Last reviewed .
Guide content last reviewed: 2026-06-19; state source data last retrieved: 2026-06-14
Economic nexus triggers at $250,000 in sales delivered to Alabama customers.
4.00% statewide sales tax rate, with an average combined state and local rate of 9.46%.
See how Alabama’s numbers stack up against every other state in our sales tax rates and economic nexus thresholds by state reference table.
| Economic nexus threshold | $250,000 No transaction count threshold |
|---|---|
| State sales tax rate | 4.00% Average combined rate (state + local): 9.46% |
| Marketplace facilitator law | Yes Amazon, Etsy, eBay collect and remit on your behalf |
| Effective date | 2018-10-01 |
| Department of Revenue |
Check Alabama nexus with your numbers
If your sales are close to the Alabama threshold, run the sales tax nexus calculator with your revenue and transaction count before you register. The calculator applies the same state threshold data shown here and can compare Alabama against every other state where you sell.
How Alabama nexus works
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.
Filing frequency
Filing frequency in Alabama depends on your sales tax liability. Higher-volume sellers file monthly; lower-volume sellers typically file quarterly or annually. The state will assign a frequency when you register.
Marketplace facilitator law
Yes, Alabama has a marketplace facilitator law. Sales you make through Amazon, Etsy, eBay, Walmart, and other marketplaces are collected and remitted by the marketplace — you do not need to collect tax on those transactions yourself, though you may still need to register.
Alabama sales tax by topic
- Alabama · E-commerceGeneral e-commerce sales tax rules
- Alabama · ShopifyShopify-specific sales tax guidance
- Alabama · AmazonAmazon FBA and marketplace sales tax
- Alabama · SaaSSoftware-as-a-service sales tax rules
- Alabama · ThresholdsEconomic and transaction nexus thresholds
- Alabama · FilingFiling frequency and procedures
- Alabama · Marketplace FacilitatorMarketplace facilitator law for the state
- Alabama · DropshippingDropshipping sales tax rules and resale certificates
- Alabama · Digital ProductsSales tax on digital downloads, eBooks, courses, streaming
Industry-specific sales tax guides
Whether a sale is taxable in Alabama often depends on what you sell, not just where. These national guides explain how sales tax applies to common business types — then check the Alabama threshold and rules above to see where you must register and collect.
- Haircut, nail, and salon sales taxWhen haircuts, nail services, and salon retail product sales are taxable.
- Restaurant and food-service sales taxPrepared-food, dine-in, and takeout taxability for restaurants.
- Food delivery sales tax (DoorDash, Uber Eats)Who collects sales tax on DoorDash, Uber Eats, and Grubhub orders.
- Digital creator and online course sales taxSales tax for influencers, course sellers, and digital downloads.
- Construction and contractor sales taxHow contractors handle sales and use tax on materials and labor.
Related states to Alabama
If you sell into Alabama, you likely also sell into these nearby or economically similar states. Each has its own nexus threshold and rate.
Frequently asked questions
- Does Alabama have sales tax?
- Yes. Alabama has a 4.00% statewide sales tax rate, plus an average local rate of 5.46%. Check the exact rate at the customer's delivery address before charging. Source data last retrieved 2026-06-14.
- Do I have to collect sales tax in Alabama?
- You must collect Alabama sales tax if your economic nexus threshold is met: $250,000 in sales to Alabama customers.
- What is Alabama's sales tax rate?
- Alabama's base state rate is 4.00% plus an average local rate of 5.46%. Always check the exact rate at the customer's delivery address before charging.
- Does Alabama have a marketplace facilitator law?
- Yes. Marketplaces like Amazon, Etsy, and eBay collect and remit Alabama sales tax on behalf of third-party sellers for transactions they facilitate. Direct-to-consumer sales outside a marketplace are still your responsibility.
- What is Alabama's marketplace facilitator threshold for sales tax?
- Alabama applies the same threshold to marketplace facilitators as to remote sellers: $250,000 in Alabama sales over the lookback period. When a marketplace exceeds the threshold, it must register and collect Alabama sales tax on every facilitated sale — sellers do not collect on those marketplace transactions. Direct-to-consumer sales you make outside any marketplace still count toward your own economic nexus and remain your collection responsibility once you cross the threshold.
- When did Alabama's economic nexus law take effect?
- Alabama's current economic nexus rule took effect on 2018-10-01.
Sources
date_retrieved: 2026-06-14. See how we verify source checks in our Methodology & Sources.