Short-Term Rental Tax in Alabama (AL)
The state-level tax rate on short-term rentals in Alabama is 9.0% , consisting of 4.0% sales tax and 5.0% lodging tax. Alabama applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Gulf Shores reaches 16.0%. STR operators must register with the state. Alabama levies a 4% state sales tax and a 5% state lodging tax on transient rentals (less than 180 days). Counties and cities may add additional lodging taxes ranging from 1-7%.
Annual Tax Estimate for Alabama
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Gulf Shores).
| Nightly Rate | Gross Revenue | State Tax (9.0%) | Gulf Shores Tax (16.0%) |
|---|---|---|---|
| $100.00/night | $23,700 | $2,133 | $3,792 |
| $150.00/night | $35,550 | $3,200 | $5,688 |
| $200.00/night | $47,400 | $4,266 | $7,584 |
| $300.00/night | $71,100 | $6,399 | $11,376 |
| $500.00/night | $118,500 | $10,665 | $18,960 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Alabama
Local taxes significantly impact the total STR tax burden in Alabama. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 16.0% in Gulf Shores.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Gulf Shores | 7.0% | 16.0% | $32.00 | Very High | Baldwin County 3% lodging tax + Gulf Shores 4% lodging tax. STR permit required. |
| Orange Beach | 7.0% | 16.0% | $32.00 | Very High | Baldwin County 3% lodging tax + Orange Beach 4% lodging tax. Popular vacation rental market. |
| Birmingham | 5.0% | 14.0% | $28.00 | High | Jefferson County 2% lodging tax + Birmingham 3% occupancy tax. |
| Destin (Fort Morgan) | 5.0% | 14.0% | $28.00 | High | Baldwin County 3% lodging tax + 2% municipal tax. |
How Alabama Compares to Other States
Below is a comparison of Alabama with five states that have similar state-level STR tax rates. This comparison helps illustrate where Alabama stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Alabama (AL) | 9.0% | 4.0% | 5.0% | Yes | Required |
| Georgia (GA) | 9.0% | 4.0% | 5.0% | Yes | Required |
| Maine (ME) | 9.0% | 5.5% | 9.0% | Yes | Required |
| Vermont (VT) | 9.0% | 6.0% | 9.0% | Yes | Required |
| Arkansas (AR) | 8.5% | 6.5% | 2.0% | Yes | Required |
| New Hampshire (NH) | 8.5% | 0.0% | 8.5% | Yes | Required |
Frequently Asked Questions About Alabama STR Taxes
What is the short-term rental tax rate in Alabama in 2026?
The state-level tax rate on short-term rentals in Alabama is 9.0%, consisting of 4.0% sales tax and 5.0% lodging tax. Local taxes can bring the total to 16.0% in cities like Gulf Shores. At $200/night with 65% occupancy, the state-level tax alone is approximately $4,266 per year.
Does Airbnb collect STR taxes in Alabama?
Yes. Airbnb, Vrbo collect state lodging tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Alabama?
Yes. Alabama requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Alabama also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Gulf Shores, Alabama?
The total combined tax rate in Gulf Shores is 16.0%, which includes the 9.0% state rate plus 7.0% in local taxes. Baldwin County 3% lodging tax + Gulf Shores 4% lodging tax. STR permit required. At $200/night with 65% occupancy, this amounts to approximately $7,584 per year in taxes.
How much will I owe in STR taxes in Alabama?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (9.0%), a property earning $200/night with 65% occupancy would owe approximately $4,266/year in state taxes alone. In Gulf Shores, the total tax at the same rate would be approximately $7,584/year. Use our STR tax calculator for a customized estimate.
Calculate Your Alabama STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Alabama. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.