Alabama state sales tax rate
The base state sales tax rate in Alabama is 4.00%. State 4%; combined commonly 9-10%. Most services exempt.
Average local tax adds approximately 5.29%, bringing the typical combined rate to about 9.29%.
Do services need sales tax in Alabama?
Generally no — Alabama taxes the sale of tangible personal property, not most services. Some specific services (typically utilities, accommodations, and certain repairs) are taxable. Verify your service category with the Alabama Department of Revenue.
Common exemptions
- Most professional services
- Custom software development
- Labor when separately stated on tangible goods
State rate
4.00%
Services
Generally exempt
Avg local add
5.29%