sales tax · 2026
Alabama sales tax registration threshold
Retail sales into Alabama (no transaction-count test).
- Measured over
- Previous calendar year
- On crossing
- Register for Alabama sales tax
What is the Alabama sales tax registration threshold?
The Alabama sales tax registration threshold is $250,000, measured over the previous calendar year. Cross it and you must register for Alabama sales tax with the Alabama Department of Revenue. You then charge sales tax on sales to customers in Alabama.
Do marketplace sales count toward this threshold?
No. Alabama (sales tax) excludes sales made through a registered marketplace facilitator from the underlying seller's own economic nexus threshold. Your Amazon, Etsy and eBay volume does not push you toward the figure on this page - only your own direct sales do.
Departmental guidance: Alabama Department of Revenue guidance
Most exclusions of this kind are conditional on the facilitator being registered and actually collecting the tax, and some states ask the seller to hold the facilitator's certification. Confirm which applies to your marketplaces before relying on it.
What's different about Alabama
Alabama's Simplified Sellers Use Tax (SSUT) lets remote sellers collect one flat 8% rate statewide instead of tracking every local rate - a genuine simplification worth opting into.
State registration isn't the whole story
Alabama is a home-rule jurisdiction: local cities and counties administer their own sales tax separately from the state. Registering with the state does not register you locally - check local requirements once you cross.
When do you need to register?
Economic nexus: once your sales into the state pass its threshold (commonly $100k or 200 transactions), you must register and collect that state's sales tax.
Deadline: Register before your next sale - many states apply nexus prospectively from the crossing.
How to register in Alabama
- 1Register for a sales-tax permit with the state's Department of Revenue.
- 2Enable tax collection for that state in your checkout / Stripe Tax.
- 3Remit collected tax on the state's filing schedule.
- 4If you're crossing several states, consider a filing service (TaxJar / Avalara).
Alabama Department of Revenue - official guidance Sales Tax Institute - Economic Nexus
Don't track Alabama by hand.
TaxesRadar reads your Stripe & Paddle sales and warns you the moment you approach this threshold - across every country and US state at once.
Alabama sales tax threshold - FAQ
What is the sales tax registration threshold in Alabama?
$250,000, measured over previous calendar year. Alabama has no transaction-count test, so volume of orders alone never triggers registration.
When do I need to register for sales tax in Alabama?
Economic nexus: once your sales into the state pass its threshold (commonly $100k or 200 transactions), you must register and collect that state's sales tax. Register before your next sale - many states apply nexus prospectively from the crossing.
Does registering with Alabama cover local sales tax too?
Not automatically. Alabama is a home-rule jurisdiction - cities, counties or parishes administer their own sales tax alongside the state. Check local registration requirements separately once you cross the state threshold.
Does TaxesRadar file my sales tax for me?
No. TaxesRadar watches your Stripe and Paddle sales, warns you before you cross this threshold, and gives you the registration checklist. Filing itself is handed to specialist partners.
Comparing tools for the Alabama threshold
TaxesRadar vs TaxJarTaxJar files US state returns. Where it stops is the border - see what each one covers, side by side.More on the Alabama sales tax threshold
Other sales tax thresholds
Guidance, not tax advice. Confirm the specifics for your situation with a qualified professional. Threshold shown for 2026; last verified 2026-07-27 against Alabama Department of Revenue. Rules change - TaxesRadar keeps them current.