Minimum Sales Rate Tax for 2024
| 4% | Column content | Column content | Column content | Column content | |
| 5% | Column content | Column content | Column content | Column content | |
| 1% | Column content | Column content | Column content | Column content | |
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| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
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| Minimum combined sales tax rate value | 10.00% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $250,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | N/A | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | 20th day of the month following the reporting period. | Column content | Column content | Column content | Column content |
The base state sales tax rate in Alabama is 4%, but since the city-specific tax rate is 3% and the Mobile County tax rate is 3%, the minimum sales tax rate for Mobile is 10%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Mobile, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Mobile
Mobile also has a lodging tax of 6% for hotels, motels, and short-term rentals. The city applies a rental tax of 4% on leased personal property, with a 1.5% tax rate for automotive rentals.
Mobile also imposes excise taxes on alcohol and tobacco products, and property taxes, while relatively low are at 10% of the assessed value if residential and 20% if commercial.
Services
Generally not taxed unless tied to the sale of tangible personal property.
Goods
Physical items such as appliances, vehicles, furniture, electronics, and sporting goods are typically subject to sales tax.
Clothing
Taxable, except during specific sales tax holiday periods.
Electronics
Taxable.
SaaS
Sales tax applies.
Digital Products
Items like e-books, music downloads, and streaming services are taxable.
Software
Downloaded software is taxed, but software pre-installed on devices is exempt.
Freight/Shipping
Shipping costs are not subject to sales tax.
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