Alabama — statewide
Alabama Department of Revenue, Sales and Use Tax Division
In short
Alabama Department of Revenue, Sales and Use Tax Division issues 2 permits we publish for Alabama — statewide, last verified 2026-09-03. Each carries the fee as the agency publishes it, with a link to the schedule it was read from.
What this agency issues
| Permit | Issuing agency | Fee | Renews | Last checked |
|---|---|---|---|---|
| Business Privilege Taxonly if it applies to you | Alabama Department of Revenue, Sales and Use Tax Division | Nothing at all where the computed tax is $100 or less, and no return is due; above that, $0.25 to $1.75 per $1,000 of Alabama net worth, capped at $15,000 for most entities | annual — due when the matching federal return is due | 2026-09-03 |
| Sales Tax License | Alabama Department of Revenue, Sales and Use Tax Division | No fee | annual — renew online between 1 November and 31 December | 2026-09-03 |
Fees shown as a range or formula are set that way by the issuing agency — we do not average them into a single number.
About each permit
Business Privilege Tax
Alabama used to charge every entity a $100 minimum whether or not it had made a penny. That minimum was phased down to $50 for 2023 and to nothing from tax year 2024, and the exemption is total: where the computed tax is $100 or less there is no tax and no return. Above the threshold the tax is real — a rate per thousand dollars of Alabama net worth, set by a band keyed to apportioned federal taxable income, capped at $15,000 for most entities, $3 million for financial institution groups and insurers paying premium tax, and $500 for an electing family limited liability entity. A new entity files an initial return within two and a half months of organising, but again only if the tax computes above $100.
Sales Tax License
No fee to obtain and none to renew — the revenue department says so in as many words. The catch is that renewal is compulsory and annual, which surprises businesses used to a license that simply persists: every sales, rental, sellers use, lodgings, utility gross receipts and simplified sellers use license must be renewed online each November or December, and a license not renewed by 31 December expires. An expired license cannot be used for tax-exempt transactions, which is the practical bite — your suppliers can no longer sell to you free of tax. Renewal is a verification exercise rather than a payment: you confirm the legal name, the owners and officers, and every location and trading name. Extensions of up to sixty days are available for reasonable cause.
Contact
- Jurisdiction
- Alabama — statewide
- Phone
- (334) 242-1490
Contact details are taken from the agency’s own site or its published fee schedule. Where we have not verified a phone number we leave it blank rather than guess.
Sources
Every fee and term above was read from one of these government pages on the date shown.
- Alabama Administrative Code rule 810-6-5-.01.01 — annual license renewal for sales and use tax accountsAlabama Legislature · primary source · retrieved 2026-09-03
- Alabama Department of Revenue — 2026 business privilege tax quick preparation reference, confirming no filing requirement below the $100 thresholdAlabama Department of Revenue · primary source · retrieved 2026-09-03
- Alabama Department of Revenue — FAQ confirming there is no cost to renew an Alabama tax account licenseAlabama Department of Revenue · primary source · retrieved 2026-09-03
- Alabama Department of Revenue — notice on the full exemption from business privilege tax where the tax due is $100 or lessAlabama Department of Revenue · primary source · retrieved 2026-09-03
Other Alabama statewide offices
- Alabama Department of Revenue, Business and License Tax Division
- Alabama Secretary of State, Business Services
- Alabama Department of Public Health, Division of Food, Milk and Lodging
- Alabama Board of Cosmetology and Barbering
- Alabama Department of Human Resources, Child Care Services Division
- Alabama Home Builders Licensure Board
- Alabama State Board of Veterinary Medical Examiners
- Alabama State Licensing Board for General Contractors
Alabama jurisdictions
Commercial Compliance Hub publishes information, not legal advice. Requirements change — confirm anything you rely on with the issuing agency before you file.