Collect tax in Alabama

When to register for tax collection

See Thresholds to get insights about your potential tax registration obligations in Alabama. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.

Remote sellers must register to collect and remit tax in Alabama when, in the previous calendar year, they exceed a sales threshold of 250,000 USD.

The threshold includes retail sales of tangible personal property, whether taxable or nontaxable. The threshold excludes sales of services, wholesale sales (sales for resale), and marketplace sales.

Register to collect tax

Register for sales tax in Alabama at the tax authority. Read more about registering for sales tax in the US in our guide. You can also use Stripe to register on your behalf.

Remote sellers with no physical presence in Alabama can register for the Simplified Sellers Use Tax. The program allows you to collect a single tax rate on all sales into the state, instead of collecting local taxes. You can collect this tax after enrolling on the My Alabama Taxes website.

After you’ve registered to collect tax in Alabama, go to Registrations to add your registrations to Stripe in the Dashboard. This turns on tax calculation and collection in Stripe for your transactions there. You’ll be able to indicate which tax program you’re registered for in Alabama as part of adding your registration to Stripe.

Learn how to add your registration in the Dashboard.

How we calculate taxes

Stripe calculates the taxes that apply to your customer’s location.

If you selected the Simplified Sellers Use Tax program in Stripe then we will calculate and collect the simplified rate. You can change this by editing the tax registration on the Dashboard.

Report and file your taxes

Stripe provides reports of your completed tax transactions. Go to Registrations to access these reports.

Exports

The tax transaction data export provides a comprehensive and aggregated view of transactions by location, including a breakdown of individual tax amounts. Learn more about tax reporting exports.

Location reports

Location reports offer a summary of transaction and refund data for specific US locations and align with Alabama filing requirements. You have the option to report on an annual, quarterly, or monthly basis.

Filing

You are responsible for filing and remitting your taxes to Alabama. Stripe doesn’t file taxes on your behalf. For automating filing in the US, we recommend using TaxJar’s AutoFile solution.