Alabama Sales Tax on Leases and Rentals Alabama: Sales Tax Handbook


Are Leases and Rentals subject to sales tax?

While Alabama's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of leases and rentals in Alabama, including motor vehicles and tangible media property. To learn more, see a full list of taxable and tax-exempt items in Alabama.

Motor Vehicles
In the state of Alabama, they will be taxed at a reduced rate.

Tangible Media Property
In the state of Alabama, they are subject to a privilege or license tax, which can also be known as a rental tax.

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