Alabama Sales Tax Guide & Nexus Calculator (2026)

Alabama is one of a small number of states with a higher-than-standard economic nexus threshold. Remote sellers use a simplified registration program that bypasses the normal city and county filing complexity. Understanding the SSUT program is essential before you register.

Quick Reference

Criterion	Detail
State Rate	4%
Economic Nexus Threshold	$250,000 gross sales (rolling 12 months)
Transaction Threshold	None
Digital Goods / SaaS	Taxable
Typical Filing Frequency	Quarterly
SST Member	No
Registration Portal	My Alabama Taxes (MAT)

Economic Nexus

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Gross Revenue (USD)

$

Total Transactions (not required)

Enter your trailing 12-month revenue to calculate nexus status.

For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026

Alabama’s economic nexus threshold is $250,000 in gross sales into the state during the previous calendar year. This is more than double the standard $100,000 threshold used by most states.

The threshold applies to all remote sellers — both US-based and international. Marketplace-facilitated sales (Amazon, Etsy, eBay) count toward the threshold even though the marketplace collects the tax on those transactions. Once you cross $250,000, you are obligated from your next sale.

Alabama uses a calendar year lookback period, not a rolling 12-month window. That means you evaluate your prior year’s Alabama sales annually, not continuously. Most compliance advisors recommend monitoring quarterly to avoid surprises.

There is no transaction count alternative trigger in Alabama.

The SSUT Program — Simplified Use Tax for Remote Sellers

Alabama operates a dedicated simplified program for remote sellers called the Simplified Sellers Use Tax (SSUT). This is almost always the right choice for e-commerce sellers who do not have a physical presence in Alabama.

Under SSUT:

• You collect and remit a single flat 8% SSUT rate on all Alabama sales
• The 8% covers the state levy and a portion distributed to local jurisdictions
• You file and pay to the state only — no separate city or county registrations required
• Participation is voluntary but strongly recommended over the standard route

The standard route (without SSUT) requires separate tracking of Alabama’s complex local and county rates, which vary across hundreds of jurisdictions and can push the total rate significantly above 4%. For remote sellers, SSUT eliminates that complexity entirely.

To enroll in SSUT, register through My Alabama Taxes (MAT) at myalabamataxes.alabama.gov and select the SSUT option. Enrollment is separate from a standard Alabama sellers permit.

Tax Rate and Product Taxability

Alabama’s state rate is 4%. Under the SSUT program, remote sellers remit a flat 8% which covers both state and local allocations.

Without SSUT, the combined rate varies significantly:

• State: 4%
• County: 0–5%
• Municipal: 0–5%
• Combined maximum: up to 13.5% in some jurisdictions

Product Categories

Taxable by default: Most tangible personal property, digital goods (including SaaS, downloaded software, digital content), and certain services.

Exempt: Prescription drugs, groceries (for human consumption at the state level, though local rates may still apply to food), and qualifying agricultural inputs.

Digital Goods and SaaS

Alabama taxes digital goods and SaaS under its state sales and use tax framework. The Department of Revenue treats remotely accessed software (SaaS), downloadable software, digital music, ebooks, and streamed content as taxable.

Key details:

• SaaS is taxable in Alabama regardless of whether it is accessed remotely
• Downloaded software is taxable
• Digital content (movies, music, ebooks) is taxable
• Custom software may be treated differently from prewritten software — consult current DOR guidance for your specific product

Under the SSUT program, the 8% rate applies to digital goods the same as physical goods.

Registration

SSUT Registration (Recommended for Remote Sellers)

1. Go to My Alabama Taxes (MAT): myalabamataxes.alabama.gov
2. Select “Register a New Business”
3. Choose “Simplified Sellers Use Tax (SSUT)” as your registration type
4. Provide your business details and EIN (or foreign equivalent)
5. You will receive your SSUT account number and can begin collecting immediately

Standard Registration

If you have a physical presence in Alabama (employees, office, warehouse, or FBA inventory), register for a standard Alabama Sales Tax License via MAT instead. You will then need to determine applicable county and municipal rates for each sale.

Foreign Sellers

Alabama accepts foreign business registrations. You will need your EIN (IRS Employer Identification Number). If you do not have a US EIN, obtain one via IRS Form SS-4 before registering.

Filing Frequency and Deadlines

Under the SSUT program:

Volume	Filing Frequency
Low (< $600/year in tax)	Annual
Medium	Quarterly
High (> $2,400/year in tax)	Monthly

Most medium-volume remote sellers file quarterly. Returns are due on the 20th of the month following the end of the filing period:

• Q1 (Jan–Mar): due April 20
• Q2 (Apr–Jun): due July 20
• Q3 (Jul–Sep): due October 20
• Q4 (Oct–Dec): due January 20

Zero returns are required even in periods with no Alabama sales.

Alabama participates in ACH credit, ACH debit, and credit card payments through MAT.

Compliance Notes

SSUT vs standard registration: Choosing the standard route without SSUT means you must collect the correct combined rate (state + county + municipal) for each transaction by destination ZIP code. Rate databases such as Avalara or TaxJar are essential for accuracy in that scenario. For most remote sellers, SSUT is the simpler option.

Marketplace sales still count: Even though Amazon, Etsy, eBay, and similar marketplaces collect and remit the tax on your behalf under Alabama’s marketplace facilitator law, those sales still count toward your $250,000 nexus threshold.

Physical nexus via FBA: Amazon FBA warehouses operate in Alabama. If your inventory is stored in Alabama, you have physical nexus from the first dollar sold — no threshold applies. Register immediately if you have FBA inventory in the state.

Use tax: Alabama customers who purchase from sellers that do not collect SSUT or sales tax owe Alabama use tax. As a registered seller, you eliminate this burden for your customers.

Related Guides

• US Sales Tax Overview
• State Sales Tax Index — All 50 States
• Amazon FBA and Physical Nexus
• Foreign Sellers Guide to US Sales Tax
• US Sales Tax Compliance Checklist