Verified April 2026
How to Calculate Sales Tax in Madison, Alabama
2026 Step-by-Step Guide for Businesses & Consumers
Current Madison Sales Tax Rate
| Jurisdiction | Rate |
|---|---|
| Alabama State Sales Tax | 4.000% |
| County Sales Tax | 1.100% |
| City / Municipal Tax | 4.300% |
| Special District Tax | 0.200% |
| Total Combined Rate | 9.600% |
How to Calculate Sales Tax in Madison
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1
Find the combined rate
The combined sales tax rate in Madison is 9.600%. This equals: Alabama state rate of 4.000% + County 1.100% + City 4.300%.
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2
Convert the percentage to a decimal
9.600 ÷ 100 = 0.0960
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3
Multiply by your purchase amount
Example: $100.00 × 0.0960 = $9.60 in sales tax
-
4
Add tax to the original price
$100.00 + $9.60 = $109.60 total cost
What's Taxable in Alabama?
Most tangible personal property is taxable in Alabama. Check with the
Alabama Department of Revenue for specific exemption categories.
Do You Have Nexus in Alabama?
Economic Nexus Threshold
If your business has over $100,000 in annual
Alabama sales or 200 transactions,
you are required to collect and remit Alabama sales tax. This applies to out-of-state remote sellers too.
Expert Sales Tax Tips for Madison
Out-of-State Sellers
Selling into Alabama from out of state? Register before you cross the $100,000 threshold to avoid back taxes and penalties.
Frequently Asked Questions
Sales Tax Calculator
Using 9.600% rate for Madison
$
Tax Amount
$0.00
Total with Tax
$100.00
Rate applied: 9.600% combined