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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

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