Dekalb County (AL) Sales Tax

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Each business in Alabama needs to collect sales taxes to then pay up to the Department of Revenue. The sales taxes are added to qualifying items and services sold. The sales tax rate is made up of the sum of the State sales tax, county sales tax, city sales tax, and in some cases, there are extra special district sales rates. The maximum sales tax applicable in Dekalb County, Alabama reaches 9.00%. The sales tax in Alabama is 4.00%. Dekalb County charges an extra 1.00% sales tax rate. Some cities charge up to an additional 4% on the sales tax rate, hence we get the maximal result of 9.00% sales tax rate.

Dekalb County Sales Tax Calculator, Alabama

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When you are selling or buying, you need to know the total sales tax applicable to your transaction. Since each city and district has its own applicable sales tax rate, it is easy to get lost. For this reason, we have created an online calculator that figures all of this out for you. All that you must do is input your zip code and the price of the transaction. The calculator will apply the sales tax rate of that zip code and will give you a result. This way you do not need to look around and search on multiple sites.

Tax Rates by City in Dekalb County, Alabama

In the USA, each district, each city has its own applicable sales tax rate. The total sales tax rates vary from a minimum of 5.00% to a maximum of 9.00%. To learn more about what is the general applicable sales tax rate for each city in Alabama, see the table below. All you must do is to look for your designated city and read the applicable sales tax rate.

City Sales Tax Rate Zip-code Population
Fort Payne 9.00% 35967 12036
Rainsville 9.00% 35986 6167
Crossville 5.00% 35962 5041
Collinsville 5.00% 35961 4299
Henagar 9.00% 35978 4203
Fyffe 5.00% 35971 3417
Valley Head 5.00% 35989 2542
Ider 7.00% 35981 1689
Mentone 7.00% 35984 1458
Sylvania 9.00% 35988 1400
Geraldine 7.00% 35974 1379
Dawson 5.00% 35963 1164

Alternative sales tax rate for Dekalb County.

County Max Combined Tax State Tax County Tax City Tax Special Tax
Montgomery County 10.00% 2.50% 3.50% 0%
Houston County 9.00% 1.00% 4.00% 0%
Lee County 9.00% 1.00% 4.00% 0%
Russell County 9.50% 1.00% 4.50% 0%
Calhoun County 10.00% 1.00% 5.00% 0%
Dallas County 10.00% 1.50% 4.50% 0%
Baldwin County 10.00% 3.00% 3.00% 0%
Shelby County 10.00% 1.00% 5.00% 0%
Walker County 10.00% 2.00% 4.00% 0%
Colbert County 9.00% 1.50% 3.50% 0%
Blount County 10.00% 3.00% 3.00% 0%
Franklin County 9.00% 2.00% 3.00% 0%
Covington County 10.00% 2.50% 3.50% 0%
Macon County 11.50% 2.50% 5.00% 0%
Monroe County 10.00% 3.50% 2.50% 0%
Conecuh County 6.00% 2.00% 0% 0%
Clay County 6.00% 2.00% 0% 0%
Greene County 10.00% 3.00% 3.00% 0%
Lamar County 6.00% 2.00% 0% 0%
Lowndes County 10.50% 4.00% 2.50% 0%
Choctaw County 10.00% 3.00% 3.00% 0%

Popular questions about sales tax in Dekalb County

What is sales tax on a car?

When you purchase a car, the laws regarding the applicable sales tax are a bit more complicated. The first factor to consider is that there is a base 6% sales tax. Let’s say that your car costs 10k. You pay 6% on that, which is $600 on sales tax. On top of this cost, you also pay fees for vehicle registration and licenses. If you complete the transaction via a dealership, then all this paperwork and its cost are factored in on the sales agreement. If you buy the car via a private seller, then it is you, the buyer that needs to process all this paperwork via the local tax office and vehicle registration office. You would be responsible for paying registration fees and the title.

States allow for trade-in allowances, and this is a fantastic way to reduce your tax bill. Instead of selling your old vehicle, and then incurring sales taxes on that transaction, you can bring your old vehicle to the dealership and do a trade-in allowance for a new car. The value of the trade-in is reduced from the sticker price of the car that your intent to purchase. Then some dealerships offer rebates, which further reduces your total sales tax.

Let’s say that you will purchase the same car as in the above example that costs 10k. Instead, this time you have an old car to do a trade-in that is valued at 2k. The dealership offers you a 1k rebate offer. In that case, your sales tax will not be charged anymore on the original price of 10k, but it will be charged on the reduced price after the rebate and the trade-in. More specifically, we will reduce from 10k, the value of the rebate (1k) and the value of the trade-in (2k), hence a total of 3k of discount. We would end up paying out-of-pocket 7k. The applicable sales tax on a 7k car is $7000*6%= $420. We can see that we are paying a lower sales tax compared to the previous tax of $600. We are not paying any taxes on the old car that you brought for a rebate and not paying any sales taxes on that.

What does sales tax mean?

The sales tax is paid by the consumer to the business. The business then collects the sales taxes and pays them out to the Department Of Revenue. Sales taxes are paid on qualifying goods, otherwise known as taxable goods. Sales taxes also apply to taxable services. Not every product or service sold qualifies for sales taxes. Some are sales tax exempt.

On the category of sales exempt, there are various items and services. These depend on the type of business that is selling them and depends on the state. Various states have different rules when it comes to sales exempt items and services. Sales tax exempt are also businesses that are qualified as non-profit.

To get more information on sales taxes, you can check this link. You will get info about what should a business do to collect taxes, about the applicable laws that determine how a business pays sales taxes and how to determine the appropriate sales tax for a newly established business. It is imperative to know that the tax rate that a business charge depends on its nexus, otherwise known as a place of incorporation.

Who has the highest sales tax?

Sales taxes rates change by zip code as each county can impose its own sales taxes. When we factor both state taxes and local taxes, we can see that in all USA, there are some areas that you end up paying more in sales taxes. We will list the top 5 states in the USA that have the highest sales taxes.

  • New York has a state tax of 4%. A during up the local taxes, the final tax rate can add up to 8.5%. The metro city area has a surcharge of 0.375% to fund public transport. Groceries and drugs are tax-exempt in NY.
  • Then we have Kansas. It has a state sales tax of 6.25%. Some local areas can charge an additional 4%. The average sales tax rate in Kansas is 8.7%, even though some areas can reach up to 10%. The sales tax applies to everything; hence it is very expensive there.
  • California has a state tax of 7.25% and local areas can charge an additional 2.5%. The average combined sales tax is 8.82%.
  • Illinois has a state tax of 6.25% and some local areas charge up to 4.75%. The average sales tax rate is 8.83%.
  • Oklahoma has a state tax of 4.75% and local areas can charge up to 7% extra on sales taxes. The average sales tax is 8.95%.
How do you do sales tax?

You need to know all the applicable sales taxes that you should collect. You collect these taxes on each transaction. When it comes time to file your business quarterly returns, you declare your sales taxes collected and you pay them to the Department OF Revenue. You pay these taxes on January 15, April 15, July 15, and October 15. The type of sales taxes collected, and the rate depends on the business incorporation location and the applicable laws of that location.

How to back out sales tax?

The first detail to know about sales taxes is that some states imposer the sale tax on the vendor, some to the buyer, and some states place sales taxes on both entities. It is important to know who pays the tax, as this affects whether you can claim the taxes as a refund or not.