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Alabama sales tax

Why is sales tax so high in Alabama?

As a result of that, state and local governments can’t raise the money they need. So they turn instead to tax measures that are easier to pass. They raise sales taxes, and sin taxes. As a result Alabama has one of the highest sales tax rates in the country.

What is subject to sales tax in Alabama?

Goods that are subject to sales tax in Alabama include physical property like furniture, home appliances, and motor vehicles. Prescription medicine and gasoline are both tax-exempt. Some services in Alabama are subject to sales tax.

What is the sales tax on food in Alabama?

4%

What is exempt from sales tax in Alabama?

Sales Tax Exemptions in Alabama

Some common items which are considered to be exempt are: prescription drugs, gasoline and motor oil items, seeds which are intended for planting purposes (fertilizer/insecticides/fungicides) agricultural, feed for livestock, and livestock.

What state has highest sales tax?

Tennessee

What state has lowest sales tax?

The five states with the lowest average combined rates are Alaska (1.43 percent), Hawaii (4.41 percent), Wyoming (5.36 percent), Wisconsin (5.44 percent), and Maine (5.50 percent).

Does Alabama charge sales tax on labor?

(2) Sales or use tax applies to labor or service charges billed to customers in conjunction with sales of tangible personal property and repairs to tangible personal property as follows: (a) Labor or service charges, whether included in the total charge for the product or billed as a separate item, are taxable if the …

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Is Alabama a destination sales tax state?

Sourcing sales tax in Alabama: which rate to collect

Alabama is a destination-based state. This means you’re responsible for applying the sales tax rate determined by the ship-to address on all taxable sales.

Does Alabama have online sales tax?

Alabama began widespread sales tax collection from online merchants on Oct. … The SSUT allows merchants to pay a flat 8 percent sales tax and avoid navigating the more than 200 different city and county rates across the state.

What taxes do you pay in Alabama?

Alabama collects a state income tax, with rates of 2%, 4% and 5%. In addition to a state sales tax, counties and cities are allowed to collect taxes on purchases made in their jurisdictions. More on Alabama taxes can be found in the tabbed pages below.

What city has the highest sales tax?

Chicago

Does Alabama charge sales tax on groceries?

Alabama one of just three states to fully tax sales of groceries. Alabama is one of only three states (Mississippi and South Dakota are the other two) that tax food for home consumption at the full rate. In Alabama, that can be as high as 11%. … The remaining states exempt groceries or tax them at a reduced rate.

How do I pay sales tax in Alabama?

The Alabama Department of Revenue requires that online sellers file sales tax online. You can file My Alabama Taxes. If you are remitting more than $750 in one payment, Alabama requires you to pay via electronic funds transfer (EFT) through My Alabama Taxes ONE SPOT.

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Do you pay sales tax on a used car in Alabama?

Compared to other states, Alabama’s state auto sales tax rate is modest, at 2 percent of the purchase price. … A breakdown of local tax rates can be found on the Sales Tax Rates publication from the Alabama Department of Revenue: For auto purchases outside of the state of Alabama, a Consumers Use Tax is assessed.

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