The Alabama economic nexus threshold is $250,000 in revenue measured over the previous calendar year. Once you cross this threshold, you must register with Alabama, collect Alabama sales tax on all taxable sales, and file regular returns. Marketplace-facilitated sales do not count toward the $250,000 threshold — only direct sales matter.
The economic nexus threshold in Alabama is $250,000 in sales revenue during the previous calendar year. Once you exceed this amount, you are required to register with Alabama and begin collecting sales tax on all taxable sales to Alabama customers.
Alabama looks at your total taxable sales in the previous calendar year (January 1 – December 31). If you exceeded $250,000 in the prior year, you have nexus at the start of the following year. Keep an eye on year-end totals to plan your registration timing.
No. Alabama excludes marketplace-facilitated sales from the economic nexus threshold. Only your direct sales to Alabama customers count toward $250,000. If you sell exclusively through a marketplace facilitator, those sales do not contribute to your nexus exposure in Alabama.
Register online at Alabama's official tax portal: https://myalabamataxes.alabama.gov/. Have your federal EIN, business legal name, mailing address, and anticipated first taxable sale date ready. Most states complete registration instantly and issue a permit number you can use immediately.
Once you meet the Alabama economic nexus threshold, you must register, collect the correct Alabama sales tax rate on all taxable sales, file regular returns (frequency depends on your sales volume — monthly, quarterly, or annually), and remit the collected tax by each due date. Retroactive liability can apply to sales made after you crossed the threshold but before you registered, so acting quickly after exceeding the threshold limits your exposure.