Sales and Use Tax


  General Rate Manufacturing Machinery Rate

City of Montgomery

3.5%

1.750%

Montgomery County

2.5%*

0.333%**

State of Alabama

4.0%

1.500%

Total

10.0%

3.583%

*1.0% designated for education

**0.133% designated for education

Note: 1/2 of City rate is levied for purchases made outside city limits/inside police jurisdiction.


Qualifying projects are eligible for an abatement of non-educational construction-related sales and use taxes associated with constructing and equipping a project. The abatement must be granted prior to placing project in service.

Statutory, Job Creation and Capital Investment Requirements