Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire. Alabama adds county and city sales taxes on top of the 4% state rate, and some cities collect their own, so check which localities you file with. Since 2020 every sales tax license is renewed online each year at no charge, and the 2025 renewal also asks for a NAICS code and business description.
Checked Oct 21, 2026 against the agency’s page.
Step 2 of 6: Register for tax
1Set up the business
2Register for tax
3Approve the space
4Get the permits for your kind of business
5Alcohol permits
6Before the first hire
Issued by Alabama Department of Revenue.
Sources and dates
Department of Revenue sales tax license FAQ and annual tax account license renewal notices (October 2025). Checked against the agency’s page on the date shown; cities add their own fees.
Questions about opening here.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Yes. Register through My Alabama Taxes before the first sale; the same registration opens the withholding account once you hire.
Alabama Department of Revenue.
Step 2 of 6, register for tax. The steps before it: set up the business.
Who needs a sales tax license and withholding account in Alabama?
