Sales Tax in Arab, Alabama in 2025

We'll walk you through how the sales tax rate is determined for Arab and address some common questions you may have. We'll also cover how to collect, audit, and remit sales tax in Arab.

Plus, we’ll share the best solution that will ensure you are always compliant across the entire sales tax lifecycle.

Disclaimer: Our sales tax data is updated on a quarterly basis. 

Arab Sales Tax Rate 2025

Arab is located in Alabama, United States. Its minimum sales tax rate is 10.00%, and its maximum sales tax rate is 12.50%. These rates include local and state sales tax rates.

Here is how the Arab sales tax rates breaks down:

Tax Jurisdiction	Sales Tax Rate
State Tax	4.00%
County Tax	1.00%
City Tax	0%
Special Tax	0%
Combined Rate	5.00%

County Sales Tax in Arab

Arab overlaps with 2 counties in Alabama. Below, you can see the county sales tax rates for each one:

County	Sales Tax Rate
Marshall County	1.00%
Cullman County	3.50%

Sales Tax Rates in Arab by Zip Codes and Districts

Below are the sales tax rates in Arab broken down by districts and zip codes:

District	Zip Codes	Combined Sales Tax Rate
Marshall County	35016	5.00%

How Does the Arab Sales Tax Compare to the Rest of Alabama?

It is 1.00% higher than the lowest sales tax rate in Alabama, which stands at 4.00% in cities like York.

The minimum sales tax rate in Arab (10.00%) is 5.00% higher than the lowest rate and 2.50% lower than the highest rate.

To give you a better idea, here’s a comparison of Arab sales tax rates with a few other cities in Alabama:

City	Sales Tax Rates
Jemison	11.00%
Boaz	5.00%
Arab	5.00%
York	4.00%
Abernant	4.00%

What Creates Sales Tax Nexus in Arab?

Arab has the same sales tax nexus rules as Alabama and no special tax rules.

Read More: Check out this detailed guide on Sales Tax in Alabama.

You have sales tax nexus in Arab if you fulfill any of these conditions:

• Physical nexus: Businesses with a physical address, like an office or warehouse, in the state.
• Delivery: If companies deliver goods using their own vehicle or leased equipment, the transportation charges are subject to sales or use tax.
• Economic nexus: Businesses whose gross revenue exceeds $250,000 in the previous or current calendar year.

Learn more about sales tax nexus and when you’re required to collect sales tax.

What Products Are Exempt from Arab Sales Tax?

Arab follows Alabama's sales tax rules with no special exceptions.

These items are exempt from sales tax in Arab:

• Raw, unprocessed agricultural products, like fruits, pecan nuts, and shelled peanuts.
• Seeds and fertilizers for planting purposes
• Sales of feed for livestock and poultry
• Prescription drugs
• Gasoline and motor oil

Who Needs a Sales Permit in Arab?

Any retailer selling, leasing, or renting tangible personal property in Arab should collect sales tax unless the state specifies otherwise.

How to Collect Sales Tax in Arab

Alabama uses a destination-based sales tax system which also applies for Arab.  

This means sales tax is calculated based on the tax rate at the delivery address where the item is shipped to the customer.

Learn more about origin-based and destination-based sales tax sourcing here.

How to File and Pay Sales Tax in Arab

You can file Arab sales tax returns using the these methods:

• Automated: Let Zamp handle your Alabama sales tax filing and remittance so you won’t have to deal with sales tax returns ever again.

• Online: Taxpayers should file and pay electronically via the My Alabama Taxes.