Alabama
9.46%
Combined average · rank #5
- State
- 4%
- Avg. local
- 5.46%
- Max local
- 8%
Compare different states
July 2026
July 2026Alabama vs Tennessee Sales Tax
Alabama has the lower combined average by 0.15%. Compare state, average local, maximum local, and combined rates—plus the dollar difference on common purchases.
By Sammy S. · Founder · AuthorUpdated for 2026
Lower combined rate
Alabama is lower
0.15% lower, saving about $1.50 per $1,000 of general taxable purchases.
Side-by-side rate scoreboard
Tennessee
9.61%
Combined average · rank #2
- State
- 7%
- Avg. local
- 2.61%
- Max local
- 2.75%
Tax on common purchase amounts
General taxable purchase estimates using each state's population-weighted combined average.
| Purchase | Alabama tax | Tennessee tax | Difference |
|---|---|---|---|
| $100.00 | $9.46 | $9.61 | $0.15 |
| $500.00 | $47.30 | $48.05 | $0.75 |
| $1,000.00 | $94.60 | $96.10 | $1.50 |
| $5,000.00 | $473.00 | $480.50 | $7.50 |
$100.00 purchase
Alabama$9.46
Tennessee$9.61
Difference: $0.15
$500.00 purchase
Alabama$47.30
Tennessee$48.05
Difference: $0.75
$1,000.00 purchase
Alabama$94.60
Tennessee$96.10
Difference: $1.50
$5,000.00 purchase
Alabama$473.00
Tennessee$480.50
Difference: $7.50
Annual taxable-spending comparison
Illustrative tax at different levels of pre-tax spending. Household exemptions and local rates can change actual totals.
$5,000 taxable spending
Alabama$473.00
Tennessee$480.50
Gap: $7.50
$10,000 taxable spending
Alabama$946.00
Tennessee$961.00
Gap: $15.00
$20,000 taxable spending
Alabama$1,892.00
Tennessee$1,922.00
Gap: $30.00
$40,000 taxable spending
Alabama$3,784.00
Tennessee$3,844.00
Gap: $60.00
What the rate difference means
At $20,000 of general taxable spending, the average-rate gap is about $30.00. That is an estimate—not a promise of household savings.
Why your checkout rate may differ
Local jurisdictions, delivery addresses, sourcing rules, tax holidays, and exemptions for groceries, medicine, clothing, vehicles, services, or digital products can change the final amount.
Alabama vs Tennessee sales tax FAQs
Alabama has the lower combined average by 0.15%. Alabama averages 9.46% and Tennessee averages 9.61%.
Alabama's statewide general rate is 4%. Tennessee's statewide general rate is 7%. Local taxes can change the combined checkout rate.
The estimated difference is $1.50, using Alabama's 9.46% and Tennessee's 9.61% combined averages.
No. These are population-weighted statewide combined averages. City, county, special-district, sourcing, and product-taxability rules can produce a different transaction rate.
Not necessarily. Grocery exemptions and reduced rates are separate from the general rate comparison. Prepared food and restaurant meals may also follow different rules.
Alabama has the lower headline combined average, but exemptions, local rates, and what a household buys determine the actual savings.
Compare another pair
Compare any two states
State, local, and combined rates with purchase and annual-spending differences.
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Estimates use population-weighted combined general rates as of July 1, 2026. Verify the exact address and product rate with the relevant revenue agency.