What is the Alabama sales tax rate in 2025?

Alabama levies a statewide sales tax at a base rate of 4% as of 2025. This rate is set by the Alabama Department of Revenue and applies to most retail sales of tangible personal property. On top of the 4% state rate, counties and municipalities add their own local sales taxes, so the combined rate you actually pay depends on where you make the purchase. The statewide average combined rate is approximately 9.25%, one of the higher averages in the United States despite the relatively modest 4% state base.

Why is Alabama's combined sales tax so high if the state rate is only 4%?

Alabama allows counties and cities to add substantial local sales taxes on top of the 4% state base. Jefferson County (Birmingham) adds 1%, and the city of Birmingham adds another 4%, plus special district taxes, bringing the combined total to 10%. Similarly, Mobile and Tuscaloosa reach 9.5%. Because the state base is low, local governments have historically used local sales taxes as a primary revenue source, creating some of the highest combined rates in the nation in major cities.

How do I calculate Alabama sales tax on a purchase?

Multiply the pre-tax price by the combined rate (state 4% plus your local rate). For example, a $200 item in Birmingham (combined 10%) has a tax of $200 x 0.10 = $20.00, giving a total of $220.00. This calculator handles that arithmetic automatically and splits the state and local portions so you see exactly how much goes to each level of government.

How do I remove Alabama sales tax from a tax-inclusive total?

Divide the tax-inclusive total by (1 + combined rate as a decimal). For Birmingham at 10%: $220.00 / 1.10 = $200.00 pre-tax. Switch the calculator to "Remove tax from a total" mode and enter the total — it will extract the exact pre-tax amount and the tax already charged, broken down by state and local portions.

Which Alabama cities have the highest combined sales tax rates?

Birmingham currently has one of the highest combined sales tax rates in Alabama at 10.0%, owing to the city of Birmingham's 4% city rate on top of the 4% state base, a 1% Jefferson County rate, and special district levies. Mobile and Tuscaloosa both sit at 9.5%. Huntsville, Montgomery, Auburn, Decatur, Dothan, and Florence are all at approximately 9.0%. Smaller municipalities and special taxing districts can push combined rates even higher in some locations.

Are food and groceries taxed in Alabama?

Yes, Alabama is one of only a handful of US states that taxes groceries (food for home consumption) at the full state sales tax rate. As of 2023, Alabama reduced the state portion of the grocery tax from 4% to 3%, with a further reduction to 2% planned once certain state revenue benchmarks are met. However, local sales taxes on groceries still apply in most jurisdictions. The rates used in this calculator apply to general retail transactions — check the Alabama Department of Revenue for the current reduced grocery rate.

Alabama Sales Tax Calculator 2025 — 4% State Rate + Local

Alabama levies a statewide sales tax at a base rate of 4% — set by the Alabama Department of Revenue and confirmed for 2025. While the state base rate is relatively low compared with other US states, Alabama cities and counties add significant local sales taxes on top, pushing combined rates in major cities to 9.0%–10.0%, some of the highest combined rates in the United States. This calculator uses the real 4% state base rate as a locked preset, adds an editable local rate field pre-filled with the statewide average of approximately 5.25%, and works in both directions: Add (pre-tax price to total) and Remove (tax-inclusive total back to pre-tax).

How it works

The calculator runs two formulas entirely in your browser:

Add mode — you enter a pre-tax price and the tool applies the combined rate:

Total tax = Pre-tax price x Combined rate Total = Pre-tax price + Total tax

Remove (reverse) mode — you enter a tax-inclusive total and the tool extracts the pre-tax component:

Pre-tax = Total / (1 + Combined rate) Tax already included = Total - Pre-tax

The combined rate is the sum of the Alabama state rate (4%, fixed) and whatever local rate you set. The results panel splits the tax into a state portion and a local portion so you can see exactly how much goes to each level of government.

Alabama sales-tax rates explained

Alabama’s 4% state sales tax applies to most retail sales of tangible personal property. The state is notable for having no general exemption for groceries — food for home consumption is taxed at a reduced state rate (lowered to 3% in 2023 with a further cut to 2% planned), though full local rates continue to apply in most jurisdictions.

Counties and cities each layer additional sales taxes on top of the state rate:

Jefferson County (Birmingham metro) adds 1%
Mobile County adds 1%
Tuscaloosa County adds 1%
Madison County (Huntsville) adds 0.5%
Montgomery County adds 0.5%
City-level rates range from 2.5% in smaller municipalities up to 4% in Birmingham and Mobile

The statewide average combined rate is approximately 9.25%, making Alabama one of the highest combined-rate states in the nation despite its modest state base rate.

Worked example

A customer buys electronics for $350 in Birmingham (combined rate 10.0%):

State sales tax: $350 x 0.04 = $14.00
Local tax: $350 x 0.06 = $21.00
Total tax: $35.00
Total paid: $385.00

Now the same customer returns the item and needs to confirm the pre-tax value from the $385.00 receipt:

$385.00 / 1.10 = $350.00 pre-tax

City	Combined rate	Tax on $350	Total
Birmingham	10.0%	$35.00	$385.00
Mobile	9.5%	$33.25	$383.25
Huntsville	9.0%	$31.50	$381.50
Montgomery	9.0%	$31.50	$381.50
Tuscaloosa	9.5%	$33.25	$383.25

Every result is computed in your browser — nothing is transmitted to any server.

Note: Alabama reduced the state portion of the grocery sales tax to 3% in September 2023, with a further reduction to 2% pending a revenue trigger. Local grocery taxes remain in effect in most jurisdictions. The calculator uses the standard 4% state rate for general retail — for grocery purchases, adjust the state rate manually or check the Alabama Department of Revenue website at revenue.alabama.gov for the current applicable rate.