Alabama Amazon Sales Tax
Alabama enforces the marketplace facilitator law since January 2019. Amazon collects and remits sales tax on all Alabama orders automatically.
Overview
Alabama enacted its marketplace facilitator law effective January 1, 2019. Since then, Amazon and other large marketplaces have been required to collect and remit sales tax on every transaction shipped to an Alabama address. As an FBA seller, you do not need to register for a sales tax permit just to sell on Amazon to Alabama buyers — the marketplace handles it.
Alabama's state sales tax is 4%, but local jurisdictions add their own rates that can push the combined rate above 11%. Amazon's automated collection handles the local complexity automatically. The state revenue department publishes a Simplified Sellers Use Tax program that some marketplaces participate in.
If you're also selling to Alabama buyers through your own Shopify store or another non-marketplace channel, the rules are different — you may have economic nexus obligations once your direct sales exceed $250,000/year, and you would need to register and file separately. The Amazon-only path is the simplest.
What FBA sellers still need to know
Even though Amazon collects on your behalf, you may still need to file an "informational return" in Alabama if you have other nexus obligations. Always confirm with a tax advisor for your specific situation.
This content is educational and not legal or tax advice. Sales tax law changes frequently and is jurisdiction-specific. Always verify with a qualified tax professional and the state revenue department before making compliance decisions.
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