Etowah County (AL) Sales Tax

  • Comments: Comments Off on Etowah County (AL) Sales Tax

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 Etowah County, Alabama reaches 10.00%. The sales tax in Alabama is 4.00%. Etowah County charges an extra 1.00% sales tax rate. Some cities charge up to an additional 5% on the sales tax rate, hence we get the maximal result of 10.00% sales tax rate.

Etowah County Sales Tax Calculator, Alabama

$
-or- Specify Sales Tax Rate
-or- Specify ZIP Code
%

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 Etowah 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 10.00%. 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
Gadsden 10.00% 35901, 35902, 35903, 35904 38638

Alternative sales tax rate for Etowah County.

County Max Combined Tax State Tax County Tax City Tax Special Tax
Jefferson County 10.00% 1.00% 4.00% 1.00%
Lee County 9.00% 1.00% 4.00% 0%
Dallas County 10.00% 1.50% 4.50% 0%
Marshall County 9.00% 0% 5.00% 0%
Shelby County 10.00% 1.00% 5.00% 0%
Limestone County 8.00% 2.00% 0% 0%
Walker County 10.00% 2.00% 4.00% 0%
Colbert County 9.00% 1.50% 3.50% 0%
Butler County 7.50% 1.50% 0% 0%
Covington County 10.00% 2.50% 3.50% 0%
Randolph County 6.50% 2.50% 0% 0%
Marion County 10.00% 2.00% 5.00% 0%
Cherokee County 7.50% 3.50% 0% 0%
Macon County 11.50% 2.50% 5.00% 0%
Hale County 7.00% 3.00% 0% 0%
Perry County 10.00% 3.00% 3.00% 0%
Clay County 6.00% 2.00% 0% 0%
Wilcox County 8.50% 4.50% 0% 0%
Coosa County 9.00% 2.00% 3.00% 0%
Lowndes County 10.50% 4.00% 2.50% 0%

Popular questions about sales tax in Etowah County

Where do you pay 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 is the highest sales tax in the US?

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%.
Which state has the lowest sales tax?

Some areas have very small sales taxes. Starting, we have Alaska, which has a sales tax of 1.76%. We need to be mindful that products and services are very expensive in Alaska. Moving on with the list, we have Oregon, Delaware, Montana, and New Hampshire that have a 0% sales tax rate. If you need information regarding the ranking of states based on sales taxes, you can check this page.

How do you add sales tax?

When you make a purchase, you must pay sales tax. To find how much u, pay, all that u have to do is to add up the total percentage of applicable sales taxes to your location and multiply that by the total cost of goods. Let’s say that your total applicable sales tax rate is 8%. Let’s say that you make a purchase worth $100. You multiply $100 with 8% to get a total sales cost of $8. You then add the $8 to the original cost of goods, bringing your final transaction cost to $108.

What is a sales tax id?

To collect taxes as a business you need a tax id number. You can get thus form the IRS . You get a sales tax id by using the information from the tax id number. A sales certificate is proof that you are buying something for business use and that you intend to resell the thing that you bought. The sales certificate allows a business to buy goods and services without a sales tax.