Alabama Sales Tax Nexus: Economic Nexus Threshold (2026)

What to do after crossing the Alabama threshold

We did not find a specific start-date rule for Alabama in the sources reviewed. Check the official guidance before you begin collecting.

1. Confirm the numbers. Check your Alabama sales against the measure and period in the key facts above.
2. Register before you collect. Use Alabama's official registration page. Collecting a state's tax without a registration is generally not allowed.
3. Collect and file. Charge Alabama sales tax (plus any local taxes that apply at the delivery address) on taxable sales from the start date, and file returns on the schedule the state assigns. Marketplaces generally collect on the sales they facilitate, so you usually collect on your direct sales.
4. Look back. If you crossed the threshold in an earlier period and did not register, get advice on those periods. Many states have voluntary disclosure programs that may limit penalties.

Physical presence and inventory in Alabama

Inventory or other property in the state (including Amazon FBA or 3PL warehouse inventory), employees, or an office generally creates physical-presence nexus regardless of the economic threshold. Alabama's economic nexus rule (Ala. Admin. Code r. 810-6-2-.90.03) applies only to sellers without physical presence.

Marketplace sellers in Alabama

Do marketplace sales count toward your own threshold? No, excluded.

ALDOR: the $250,000 calculation 'should only include retail sales made directly by the seller'; sales through an SSUT-participating marketplace that collects Alabama tax on the seller's behalf are excluded. Marketplace facilitators with $250,000+ of Alabama marketplace sales must collect SSUT (or elect notice/reporting).

Other things to know about Alabama

• Simplified Sellers Use Tax (SSUT) program (Act 2015-448): eligible remote sellers can collect a flat 8% sellers use tax on all Alabama sales instead of state + local rates; collecting SSUT relieves the seller and purchaser of any additional state and local sales/use tax on the transaction.
• Sellers must apply and be accepted into the SSUT program before collecting the flat 8%; application is through My Alabama Taxes (MAT).
• The $250,000 threshold is measured only on the previous calendar year (no current-year trigger), and is one of only two $250,000 thresholds in the U.S. (with Mississippi).
• The SSUT local portion is distributed to Alabama cities and counties by population, so SSUT sellers do not need to track local rates.