This calculator starts with Alabama’s combined rate of 9.46% (4% state + 5.46% average local). Your actual rate depends on the city, county and district of the sale — pick “Custom rate” to enter it exactly.
Alabama sales tax rates in 2026
At 9.46%, Alabama’s combined average rate ranks 5 of the 50 states and D.C. (1 = highest) — 2.46 percentage points above the middle value of all 51 jurisdictions (7%). Its state rate of 4% ranks 41 of 51.
| Measure | Rate | Rank (1 = highest) |
|---|---|---|
| State sales tax rate | 4% | 41 of 51 |
| Average local rate (population-weighted) | 5.46% | — |
| Combined state + average local rate | 9.46% | 5 of 51 |
| Highest local rate | 8% | — |
| Middle of all 51 (combined) | 7% | 26 of 51 |
Highest average local rate in the U.S. (5.46%). The highest local rate is the 8.00% shown in Tax Foundation's Midyear 2026 web table; the Tax Foundation downloadable data file lists 11.00% for the same field, so treat the highest local rate as approximate.
Sales tax on common purchases in Alabama
Sales tax at the 4% state rate alone and at the 9.46% combined average, rounded to the cent:
| Purchase | State tax only (4%) | Tax at 9.46% combined | Total with combined tax |
|---|---|---|---|
| $100 purchase | $4.00 | $9.46 | $109.46 |
| $500 purchase | $20.00 | $47.30 | $547.30 |
| $1,000 purchase | $40.00 | $94.60 | $1,094.60 |
| $25,000 car | $1,000.00 | $2,365.00 | $27,365.00 |
The $25,000 car line uses the general rate. Many states tax vehicles under separate rules — a different rate, a cap, or tax on the price after a trade-in — so treat it as an estimate.
Groceries and items taxed differently
Groceries: Taxed at a reduced state rate of 2% (cut from 3% on Sept. 1, 2025 under Act 2025-305; the 2% state tax was temporarily suspended May 1-June 30, 2026 under HB 527 and resumed July 1, 2026); local sales taxes also generally apply, though localities may reduce their grocery rates.
Other items, such as clothing, prescription drugs and services, can also be exempt or taxed at a different rate depending on the state. Alabama’s tax agency publishes the rules for specific items; the sources below include its guidance on the changes noted here.
Alabama vs. neighboring states
3 of 4 neighbors have a lower average combined rate than Alabama and 1 has a higher one; on a $1,000 purchase the tax ranges from $69.80 in Florida to $96.10 in Tennessee, versus $94.60 in Alabama.
| State | State rate | Avg. local | Combined | Tax on $1,000 | vs. Alabama |
|---|---|---|---|---|---|
| Florida | 6% | 0.98% | 6.98% | $69.80 | −$24.80 |
| Mississippi | 7% | 0.06% | 7.06% | $70.60 | −$24.00 |
| Georgia | 4% | 3.56% | 7.56% | $75.60 | −$19.00 |
| Alabama | 4% | 5.46% | 9.46% | $94.60 | — |
| Tennessee | 7% | 2.61% | 9.61% | $96.10 | +$1.50 |
Shopping across a state line doesn’t always save money: when a seller doesn’t collect your state’s tax, you generally owe use tax at your home rate. See sales tax rates for every state.
How to calculate Alabama sales tax
- Add tax: multiply the price by 1.0946. $100.00 × 1.0946 = $109.46.
- Remove tax: divide the total by 1.0946. $1,000.00 ÷ 1.0946 = $913.58, so the tax was $86.42.
- Tax alone: multiply the price by 0.0946. On $500.00: $47.30.
If you itemize deductions, you can deduct either your state and local income taxes or your general sales taxes on your federal return, within the SALT cap. The income tax calculator shows whether itemizing beats the standard deduction.
Frequently asked questions
What is the sales tax rate in Alabama in 2026?
Alabama’s state rate is 4% and the population-weighted average local rate is 5.46%, for a combined average of 9.46% as of July 1, 2026 (Tax Foundation). That ranks 5 of 51 (1 = highest). Local rates reach 8%, so check the rate for the exact address of the sale. At the average combined rate, a $100.00 taxable purchase costs $109.46.
How much is sales tax on $1,000 in Alabama?
About $94.60 at the 9.46% combined average rate, for a total of $1,094.60. The state portion alone is $40.00; the rest depends on your city, county and district taxes. Multiply the price by 0.0946 to get the tax, or by 1.0946 to get the total.
How do I remove Alabama sales tax from a total?
Divide the total by 1.0946 (1 plus the 9.46% combined rate). A $1,000 receipt total works out to $913.58 before tax and $86.42 of tax. Subtracting 9.46% of the total would give $905.40, which understates the price because the tax was charged on the smaller pre-tax amount.
How much is sales tax on a $25,000 car in Alabama?
At the 9.46% general combined rate, $2,365.00, for a total of $27,365.00. Vehicles are often taxed under separate motor vehicle tax rules, at a different rate or on a price reduced by a trade-in, so confirm the amount with Alabama’s motor vehicle or tax agency before you budget for it.
Are groceries taxed in Alabama?
Yes. Groceries are taxed at a reduced state rate of 2% (cut from 3% on Sept. 1, 2025 under Act 2025-305; the 2% state tax was temporarily suspended May 1-June 30, 2026 under HB 527 and resumed July 1, 2026); local sales taxes also generally apply, though localities may reduce their grocery rates. Prepared food, such as restaurant meals and hot deli items, is generally taxable, and items like candy, soft drinks and alcohol may be treated differently from groceries, so check with Alabama’s tax agency for a specific product.
Is sales tax higher in Alabama than in neighboring states?
3 of 4 neighbors have a lower average combined rate than Alabama and 1 has a higher one; on a $1,000 purchase the tax ranges from $69.80 in Florida to $96.10 in Tennessee, versus $94.60 in Alabama. These comparisons use each state’s combined state and average local rate. Crossing a border to save tax doesn’t always work: if a seller doesn’t collect your home state’s tax, you generally owe use tax at home.