Credit card processing and merchant services in Tuscaloosa, AL
Inside Tuscaloosa's city limits, the City's own sales tax is 3% on general sales and 2.25% on vending, its lodging tax is 11%, and both returns are due by the 20th.
Tuscaloosa is growing. The Census Bureau estimated 114,316 residents in July 2025, up 13.2% from its April 2020 base of 101,001, and new storefronts need their tax setup right from the first sale. The City of Tuscaloosa publishes its own rates, so start there.
Inside the city limits, the City's sales tax is 3% on general sales, 1.125% on automotive, machine and farm sales, and 2.25% on vending. In the police jurisdiction, the general rate is 1.5%. Those are the City's shares only. Alabama's 4% state rate (2% on food since September 1, 2025) and any county tax come on top, so get the full total for your address before you program a register. City returns are due by the 20th of the month after the period you're reporting.
Rooms are taxed harder. The City's lodging tax is 11% inside the city limits and 5.5% in the police jurisdiction, paid monthly by the 20th. Stays of 180 consecutive days or more in the same place are exempt, which matters if you rent furnished units for long stays as well as short ones.
Vending is where card fees hurt most. On a $2 snack, the per-transaction part of a card fee can cost more than a 3% surcharge would bring in, and Visa and Mastercard keep debit cards off limits anyway. We've found no Alabama statute capping surcharges, so the networks' 3% and 4% limits apply to credit. On interchange-plus pricing, the cost of each card is printed on your statement, and a free statement review holds it up against your current bill.
Rules that matter in Tuscaloosa
Tuscaloosa city sales tax rates by type of sale
The City of Tuscaloosa's Revenue Division lists these city rates inside the city limits: 3% general, 1.125% automotive, 1.125% machine, 1.125% farm and 2.25% vending. The general city rate in the police jurisdiction is 1.5%. City sales tax is due by the 20th of the month following the period you're filing for.
The state's 4% general rate (2% on food since September 1, 2025) is added on top of the City's share.
Sources: City of Tuscaloosa, Revenue Division, Sales tax; Alabama Department of Revenue, State sales, use and lodgings tax rates
Tuscaloosa lodging tax and its 180-day exemption
Tuscaloosa's lodging tax is 11% inside the city limits and 5.5% in the police jurisdiction. It's paid monthly, by the 20th of the next month. Charges for rooms, lodgings or accommodations provided for 180 consecutive days or more in the same place are exempt.
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Common questions
What is the City of Tuscaloosa's sales tax rate?
Inside the city limits, the City's share is 3% on general sales, 1.125% on automotive, machine and farm sales, and 2.25% on vending; the general rate in the police jurisdiction is 1.5%. Alabama's state rate and any county tax are added on top, so confirm the full rate for your address with the Revenue Division.
How are vending machine sales taxed in Tuscaloosa?
The City charges 2.25% on vending inside the city limits, below its 3% general rate. The state's share and any county tax still apply on top, so check the full rate for each machine's location before you set prices that include tax.
Is a 180-day stay in Tuscaloosa exempt from lodging tax?
Yes. The City's lodging tax page exempts charges for rooms or accommodations provided for 180 consecutive days or more in the same place. Shorter stays pay 11% inside the city limits and 5.5% in the police jurisdiction, and the tax is filed monthly by the 20th.
When are Tuscaloosa sales and lodging tax returns due?
Both by the 20th. The City's sales tax page sets the 20th of the month after the period you're filing for, and lodging tax is paid monthly by the 20th of the following month. Put the date on your calendar, and keep the tax you collect in a separate account so the money is there when it's due.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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