Hotels, motels, and short-term rentals in Birmingham collect a 6.5% city lodgings tax stacked on top of Alabama's 4% state lodgings tax, producing a combined occupancy tax burden of roughly 10.5% on every room night.
Birmingham's lodgings tax is administered by the Department of Finance Revenue Division and applies to any room rented for fewer than 180 continuous days, including hotel rooms, motel rooms, bed and breakfasts, and short-term rentals listed on platforms such as Airbnb. Operators must register, file monthly returns, and remit the city's 6.5% on top of Alabama's 4% state lodgings tax under AL Code Title 40 Chapter 26. Jefferson County also levies its own lodging tax in some areas. Rates change periodically by ordinance.
Failure to register, collect, or remit lodging taxes can result in penalties, interest on unpaid balances, and revocation of the business license required to operate.
Birmingham, AL
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