Alabama Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Alabama vacation rental property.

Step 1 of 4: Your Details

Your Details

Enter your details below to see your personalized vacation rental tax breakdown.

First Name

Last Name

Phone Number

I consent to receiving marketing communications from Lodgify via email, WhatsApp, and phone calls, including AI-automated calls.

By submitting this form I agree with Lodgify Privacy Policy

Tax Types

What Taxes Apply to Alabama Short-Term Rentals?

Alabama STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.

Sales Tax

Alabama applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 16%. Cities may add local sales tax on top.

Occupancy / Transient Lodging Tax

Alabama's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 16% in Birmingham and 15% in Gulf Shores. This includes state, county, and city-level components.

Tourism / Convention Center Tax

While Alabama doesn't have a prominent statewide tourism tax, some cities and resort areas may levy additional tourism development or marketing district assessments of 1–3%.

Federal & State Income Tax

Net rental profit is subject to both federal income tax (10–37% in 2026) and Alabama's state income tax at 5%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

Property Tax

Alabama's average effective property tax rate is 0.41% — among the lowest in the U.S.. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in Alabama?

Airbnb has agreements to collect and remit taxes in Alabama — but coverage is not always complete.

Airbnb collects Alabama's state-level lodging tax in most jurisdictions.
In Birmingham and Gulf Shores: Airbnb may or may not collect all county/city taxes.
Rural areas: You're often fully responsible for all local tax collection.
Even where Airbnb collects, you may owe additional local levies or special district taxes.

Bottom line: Never assume Airbnb handles all your Alabama tax obligations. Verify with your local tax authority.

Compliance

Do You Need a Tax Permit in Alabama?

In most Alabama jurisdictions, yes. Common permits and registrations required:

State sales tax permit / seller's permit
City or county business license
Short-term rental operating permit
Lodging tax registration certificate

Consequences of non-compliance

5–25% penalties on unpaid taxes in Alabama

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in Alabama

Key tax facts every vacation rental host in Alabama should know.

State lodging tax: 5% on transient accommodations

Property tax rate: ~0.41% (among the lowest in the US)

State income tax: 5% flat rate on rental profit

No state-wide STR permit required, but cities may require one

City Breakdown

Lodging Tax Rates by City in Alabama

Combined lodging/occupancy tax rates for major vacation rental markets in Alabama.

CityCombined Rate

Birmingham

4% state + 5% county + 7% city

16%

Gulf Shores

4% state + 5% county + 6% city lodging

15%

Mobile

4% state + 3% county + 5% city

12%

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About Alabama Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in Alabama.

Get Started Today with Lodgify

Ready to boost your vacation rental's visibility and revenue?

Lodgify gives you channel management, dynamic pricing, direct booking websites, and everything you need to grow — all in one platform.

Start Free Trial Book a Demo

No credit card required · Set up in minutes · Cancel anytime