# Collect tax in the United States

Learn how to use Stripe Tax to calculate, collect, and report tax in the US.

Businesses selling goods and services to customers in the United States (US) might need to collect sales tax. Tax rates and rules vary by region. For each state and territory below, you can find information about registration thresholds, supported tax calculations, and relevant resources. Select a region to see specific details.

- **Status**

  - None No transactions

- **Tax type**

  Sales tax (including seller use tax)

- **Threshold**

  250,000 USD

- **Included transactions**

  Retail sales of tangible personal property

- **Registration resources**

  [Alabama Department of Revenue](https://www.revenue.alabama.gov/sales-use/sales-tax/)

## When to register for tax collection

In Alabama, Stripe Tax supports calculation and collection of sales tax (including seller use tax).

See [Needs attention](https://dashboard.stripe.com/tax/locations?primary_tab=needs_attention) tab 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](https://docs.stripe.com/tax/monitoring.md).

Remote sellers must register to collect and remit sales 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.

If your **head office** in the [tax settings page](https://dashboard.stripe.com/settings/tax) of the Dashboard is in Alabama, you’re not a remote seller and you must register due to your physical presence in the state.

## Register to collect tax

If you’re a remote seller, [Stripe can register with the local tax authorities](https://docs.stripe.com/tax/use-stripe-to-register.md) for you.

Register for sales tax in Alabama at the [tax authority](https://www.revenue.alabama.gov/sales-use/sales-tax/). Read more about registering for [sales tax in the US in our guide](https://stripe.com/guides/sales-tax-registration-process-us). You can also use [Stripe to register](https://docs.stripe.com/tax/use-stripe-to-register.md) on your behalf.

Remote sellers with no physical presence in Alabama can register for the [Simplified Sellers Use Tax](https://www.revenue.alabama.gov/sales-use/simplified-sellers-use-tax-ssut/). 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](https://myalabamataxes.alabama.gov/_/).

After you’ve registered to collect tax in Alabama, go to [Locations](https://dashboard.stripe.com/tax/locations?location=us-al) 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](https://docs.stripe.com/tax/registering.md#track-your-registrations-in-the-tax-dashboard) 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, then Stripe calculates and collects tax using the simplified rate. You can change that by editing the tax registration in your Dashboard.

## Report and file your taxes

Stripe can automatically [file for you](https://docs.stripe.com/tax/file-with-stripe.md). Alternatively, use [Locations](https://dashboard.stripe.com/tax/locations) in the Dashboard to review reports and file on your own.

### Filing

In Alabama, you can [file with Stripe](https://docs.stripe.com/tax/file-with-stripe.md) to automate US sales tax filing from the Stripe Dashboard. You can also choose to file using one of Stripe Tax’s filing partners—Taxually, Marosa, and Hands-off Sales Tax (HOST). These partners automatically sync your tax transaction data in real time, eliminating the need for manual data entry or file transfers. Learn more about [tax filing](https://docs.stripe.com/tax/filing.md).

### Location reports

[Location reports](https://docs.stripe.com/tax/reports.md#us-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.

### 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](https://docs.stripe.com/tax/reports.md#exports).

## See also

- [Set up Stripe Tax](https://docs.stripe.com/tax/set-up.md)
- [Register for sales tax, VAT, and GST](https://docs.stripe.com/tax/registering.md)
- [Use Stripe to register](https://docs.stripe.com/tax/use-stripe-to-register.md)