Invoicing in Alabama

Built-in handling of AL sales tax (4% state rate) and statutory late fees.

State sales tax
4.00%
Late fee max
1.5%/mo
Metros covered
11
Written contract req.
No
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Alabama compliance at a glance

  • Sales tax: 4.00% state rate. State 4%; combined commonly 9-10%. Most services exempt.
  • Late fees: Up to 1.5% per month. (Ala. Code 搂8-8-1) Civil usury cap 8%/yr without written agreement; up to 6%/yr above prime in writing.
  • Prompt-pay law: Alabama Prompt Pay Act (Ala. Code 搂41-16-3); construction 搂8-29-1 et seq.. Construction: payment within 30 days of pay app; 1% per month interest if late.

Alabama metros

Alabama guides