Shelby 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 Shelby County, Alabama reaches 10.00%. The sales tax in Alabama is 4.00%. Shelby 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.

Shelby 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 Shelby 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
Alabaster 9.00% 35007 21780
Pelham 9.00% 35124 20038
Helena 9.00% 35080 13265
Calera 9.00% 35040 11839
Montevallo 10.00% 35115 9197
Chelsea 10.00% 35043 7877
Columbiana 5.00% 35051 6352
Maylene 9.00% 35114 5305
Sterrett 5.00% 35147 4332
Wilsonville 8.00% 35186 3658
Vincent 9.00% 35178 2807
Shelby 5.00% 35143 2292
Harpersville 9.00% 35078 1768

Alternative sales tax rate for Shelby County.

County Max Combined Tax State Tax County Tax City Tax Special Tax
Mobile County 10.00% 1.00% 5.00% 0%
Madison County 9.00% 0.50% 4.50% 0%
Tuscaloosa County 10.00% 3.00% 3.00% 0%
Russell County 9.50% 1.00% 4.50% 0%
Walker County 10.00% 2.00% 4.00% 0%
Pike County 9.50% 2.50% 3.00% 0%
Tallapoosa County 10.00% 2.00% 4.00% 0%
Dale County 10.00% 1.00% 4.00% 0%
Dekalb County 9.00% 1.00% 4.00% 0%
Escambia County 9.50% 3.50% 0% 2.00%
Butler County 7.50% 1.50% 0% 0%
Covington County 10.00% 2.50% 3.50% 0%
Marion County 10.00% 2.00% 5.00% 0%
Fayette County 9.00% 2.00% 1.00% 0%
Marengo County 10.00% 3.00% 3.00% 0%
Henry County 9.00% 2.00% 3.00% 0%
Bibb County 10.00% 4.00% 2.00% 0%
Greene County 10.00% 3.00% 3.00% 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 Shelby County

When do you pay sales tax on a new 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.

How do you add sales tax to a price?

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 number?

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.

What is a sales tax license?

A sales tax certificate is a document that allows a business to make sales-tax-free purchases of goods and services that it intends to reuse for business and to later sell and collect sales tax on. Some states allow buyers and businesses that engage in frequent transactions to create a blanket certificate. This is a simplified version of the sale certificate, and it is valid for a specified amount of time.

Sellers that do not have a large volume of transactions do not even need a sale certificate. Such is the case of garage sales. Some states offer direct payment certificates, which allow for the purchasers to not pay any sales tax to their sellers, but they pay everything to the government directly. There are numerous intricate scenarios and for this, you need a good CPA or a sales law specialist to better guide you.

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.