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The Alabama sales and use tax law is found in Chapter 23, Title 40, Code of Alabama 1975. The Alabama sales and use tax law provides for rate differentials, abatements, exemptions for specific items, and certain exemptions and credits for qualifying industries.
Sales & Use Tax Rate Differentials
In addition to the state taxes, most cities and counties also levy their own sales and use taxes, which provide similar rate differentials. Search for local sales and use tax rates here. |
Sales & Use Tax AbatementsAlabama has tax abatement programs that allow qualifying industries to receive abatements of state and non-educational county and city construction-related sales and use taxes. Learn more about tax abatements. |
Sales & Use Tax Exemptions
Other exemptions for sales and use taxes are described in the Sales & Use Tax Laws. |
Sales Tax Enterprise Zone ExemptionThis exemption is offered to help encourage economic growth in areas considered to have depressed economies (Section 41-23-30, Code of Alabama 1975). To qualify for this incentive, a business must meet detailed requirements concerning site location and employee qualifications. Please click here for further information. |
Credit Against Utility Taxes Paid for Certain Approved CompaniesThe Alabama Jobs Act (Sections 40-18-376) allows an Approved Company that has been awarded an Investment Credit to utilize the credit against certain utility taxes. Please contact incentives@commerce.alabama.gov for qualification inquiries under the Alabama Jobs Act. |
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