Wilcox 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 Wilcox County, Alabama reaches 8.50%. The sales tax in Alabama is 4.00%. Wilcox County charges an extra 4.50% sales tax rate. Some cities charge up to an additional 0% on the sales tax rate, hence we get the maximal result of 8.50% sales tax rate.

Wilcox 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 Wilcox 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 8.50% to a maximum of 8.50%. 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

Alternative sales tax rate for Wilcox 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%
Morgan County 9.00% 1.00% 4.00% 0%
Coffee County 9.00% 1.00% 4.00% 0%
Baldwin County 10.00% 3.00% 3.00% 0%
Jackson County 9.00% 2.00% 3.00% 0%
Dekalb County 9.00% 1.00% 4.00% 0%
Chilton 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%
Marion County 10.00% 2.00% 5.00% 0%
Cleburne County 8.00% 2.00% 2.00% 0%
Macon County 11.50% 2.50% 5.00% 0%
Henry County 9.00% 2.00% 3.00% 0%
Monroe County 10.00% 3.50% 2.50% 0%
Geneva County 9.50% 2.00% 3.50% 0%
Bullock County 10.00% 2.50% 3.50% 0%
Bibb County 10.00% 4.00% 2.00% 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 Wilcox County

How do you calculate 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 sales tax used for?

Sales taxes are collected by the Department of Revenue. The taxes go to the General Fund, and it funds government expenses. Some parts of the sales tax fund state operations, such as K-12 education. The money can be used to fund other public services. The money collected from taxes is also used to pay the wages of jobs that are related to government agencies, such as police departments, libraries, museums, etc.

When to charge 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.

What is a sales tax certificate?

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.

Who pays 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.