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by TaxJar December 1, 2025
Alabama has instituted a program for out-of-state online sellers which would allow them to just charge a 8% flat rate to buyers in Alabama. Thinking this method of sales tax simplification might be too good to be true, we emailed the incredibly helpful Alabama Department of Revenue to investigate. Here’s the full scoop:
The Alabama Department of Revenue detailed the new regulation in a press release . Long story short:
First off, if you already have sales tax nexus in Alabama, this new program won’t change anything for you . Ties that create nexus in Alabama include:
In other words, if you thought – like I first did – that this new act would simplify use tax filing for remote sellers who have nexus in Alabama then that’s not quite correct.
So if you already have nexus in Alabama – perhaps you have an employee there or store goods in a warehouse – then continue to collect and remit Alabama use tax as you always have. (Read here for more on what businesses need to know about sales and use tax in Alabama .)
If you don’t currently have nexus in Alabama then you are free to avail yourself to this program. If you don’t have nexus but choose to collect sales tax in Alabama, it just might make your life easier.
But the con is that:
Alabama seems to be preparing for a time when federal internet sales tax legislation passes. You can read more here about the current state of internet sales tax legislation as well as TaxJar’s opposition to all the current acts on the table.
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