Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Alabama, sales tax is a mandatory tax imposed by the state on the sale of most goods and services. The state sales tax rate is 4%, but local jurisdictions such as cities and counties can add their own sales taxes on top of the state rate, which can make the total sales tax rate vary significantly across different locations within the state. These additional local sales taxes can make the total sales tax rate as high as 11% in some areas. The sales tax is generally collected by the retailer at the point of sale and then remitted to the state's Department of Revenue. Alabama's sales tax is indeed often referred to as a retail sales tax, and it applies to the sale of tangible personal property and certain services. There are exemptions and exceptions to the sales tax, which include but are not limited to, certain food items, prescription drugs, and services such as medical care and education.