Alabama Contractor Sales Tax 2026
Impuesto sobre ventas para contratistas en Alabama 2026. ¿La mano de obra está gravada? ¿Los materiales? Reglas reales del departamento de ingresos estatal.
Alabama sales tax rate for contractors
- Combined rate: 4% + local (~9.2% combined avg)
- Construction labor taxable: NO - real property labor is exempt
- Tax authority: Alabama Department of Revenue
How Alabama treats contractor labor
Contractor labor on real property is exempt; contractor pays sales tax on materials at purchase.
Alabama-specific rules
Lump-sum contracts: contractor consumes materials and pays tax at purchase. Time-and-materials may be treated differently. State imposes a 1.5% rental tax on equipment rentals.
Alabama mechanics lien rights
Beyond sales tax, Alabama contractor billing must respect the mechanics lien deadline of 6 months from last work (4 months for laborers). Preliminary notice: Notice to owner required before residence lien.
Alabama contractor licensing
Alabama Licensing Board for General Contractors - required for licensed work. $300 application + exam. Board: https://genconbd.alabama.gov.
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