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Alabama Sales Tax Calculator 2026

Alabama's 4% state sales tax looks low, but cities and counties add an average of 5.46% and as much as 8%, giving the state one of the highest average combined rates in the US at 9.46%. Groceries get a break: the state rate on food has been 2% since 1 September 2025, although local food taxes still apply. Pick general goods or groceries below, type your local rate, and the calculator adds the tax or works it back out of a total.

By , Founder and editor-in-chiefLast reviewed

$
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Average 5.46%, highest 8%. Exact rate: official lookup.

Total with tax

$109.46

Sales tax $9.46 at 9.46%

Price before tax
$100.00
Sales tax
$9.46
Total
$109.46

How this was calculated

Rate = 4% state + 5.46% local = 9.46%

Tax = $100.00 × 9.46% = $9.46 (rounded half up to the cent)

Total = $100.00 + $9.46 = $109.46

Alabama rate checked 2026-10-28. Average and highest local rates: Tax Foundation, midyear 2026. We do not have a ZIP code or address database, so type the local rate for the place of sale from the Alabama Department of Revenue sales tax rate lookup. Online orders are taxed at the delivery address.

Alabama sales tax at a glance

Alabama sales tax rules
Type of taxSales and use tax
State rate4%
Local ratesAverage 5.46%, highest 8.00%
Average combined rate9.46%
Groceries2% state + localThe state rate on SNAP-eligible food fell from 3% to 2% on 1 September 2025 (Act 2025-305). Local sales taxes still apply; localities may lower their own food rates.
Prescription drugsExemptPrescription drugs and insulin are exempt. Prescription drugs for animals are taxable.
ClothingTaxed (July back-to-school holiday)Clothing is taxed at the full rate, except articles of $156 or less during the July back-to-school holiday where the locality takes part.

Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the Alabama Department of Revenue sales tax rate lookup.

Worked examples

$150 of groceries at the average local rate

$150 of groceries at the average local rate
Rate2% grocery + 5.46% local = 7.46%
Price before tax$150.00
Sales tax$11.19
Total$161.19

Working: $150.00 × 7.46% = $11.19. Groceries pay the 2% state food rate plus the full local rate. Local taxes are most of the bill here, so check whether your city has lowered its food rate.

Working back from a $109.46 total at 9.46%

Working back from a $109.46 total at 9.46%
Rate4% state + 5.46% local = 9.46%
Price before tax$100.00
Sales tax$9.46
Total$109.46

Working back: $109.46 ÷ 1.0946 = $100.00, so the tax was $9.46. At the average combined rate of 9.46%, a total of $109.46 means the item cost exactly $100 before tax. Most of that tax goes to local governments.

Why Alabama local rates are so high

Alabama lets both counties and cities levy sales tax, and many do both, so local tax often adds 5% to 6% on top of the 4% state rate. The Tax Foundation puts the population-weighted local average at 5.46% and the highest local rate at 8%, which means some purchases are taxed at 12%. Rates change often, so look up the exact address with the Department of Revenue's rate lookup before you rely on a figure. Some cities and counties also collect their own tax directly instead of through the state; the Department publishes a contact list for these self-administered localities.

Grocery tax cut to 2%

Alabama cut its state sales tax on food from 4% to 3% in 2023, then to 2% on 1 September 2025 under Act 2025-305. "Food" follows the federal SNAP definition: groceries for home use, but not alcohol, tobacco or hot, ready-to-eat food. The cut is state only. City and county sales taxes still apply to groceries at their normal rates, unless a locality chose to lower its own food rate, which the 2025 act allows. On a $150 grocery bill at the average local rate, the cut saves $1.50 compared with 2024.

Alabama sales tax holidays

Alabama has two yearly holidays. The back-to-school holiday ran from 17 to 19 July 2026 and covered clothing up to $156 per article, computers up to $1,173, school supplies up to $78 and books up to $47; the caps are now indexed to inflation. The severe weather preparedness holiday runs over the last full weekend of February. The state exemption always applies, but cities and counties must opt in, so local tax can still be due in some places.

Alabama vs. neighboring states

Alabama sales tax compared with neighboring states
StateState rateAvg. combinedGroceries
Alabama4%9.46%2% state + local
Mississippi7%7.06%5% (since July 2025)
Tennessee7%9.61%4% state + local
Georgia4%7.56%No state tax; local tax applies
Florida6%6.98%Exempt

Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.

Frequently asked questions

Why is sales tax so high in Alabama?

The state rate is only 4%, but counties and cities can each add their own taxes. Local rates average 5.46% and reach 8%, so combined rates of 9% to 12% are common.

What is the Alabama sales tax on groceries in 2026?

The state rate on SNAP-eligible food is 2%, down from 3% on 1 September 2025. Local sales taxes still apply on top, so the total grocery rate depends on your city and county.

Are prescription drugs taxed in Alabama?

No. Prescription drugs for people are exempt from Alabama sales tax, and insulin is exempt too. Prescription drugs for animals are taxable.

When is the Alabama back-to-school sales tax holiday?

It runs over a weekend in July. In 2026 it was 17 to 19 July, covering clothing up to $156 per item, computers up to $1,173, school supplies up to $78 and books up to $47.

What is the sales tax rate in Alabama in 2026?

The statewide rate is 4%. Local taxes add 5.46% on average and up to 8.00%, so the average combined rate is 9.46% (Tax Foundation, rates as of 1 July 2026).

How do I calculate Alabama sales tax on a purchase?

Add the state and local rates, then multiply the price by that rate as a decimal. At 9.46% (the state rate plus the average local rate), tax on $100 is 100 × 0.0946 = $9.46, for a total of $109.46. To go back from a receipt total, divide it by 1 plus the rate.

How we keep this tool accurate

Written and checked by
Awais, founder and editor-in-chief
Last reviewed

Results are estimates for general information only and are not financial, tax or legal advice. Rules and rates change; check official sources or a qualified professional before you act. See how we build and check our calculators.