Birmingham, AL Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Base tax rate
- 6.5% of room charge
- Added flat charge
- $3.00 per room per night
- Monthly return due
- 20th of following month
- Annual return due
- January 31
- License required
- Yes, before operating
- Late filing penalty
- 10% or $50, plus 1%/mo interest
- Enforcing office
- City Department of Finance
Summary
Birmingham taxes hotel, motel and other transient lodging at 6.5% of the room charge plus a flat $3.00 per room per night. Operators must hold a city license and file monthly returns with the finance department by the 20th.
(1)Lodgings tax rate. On each person, firm, or corporation engaging or continuing within this city in the business of renting or furnishing any room or rooms, lodgings, or accommodations to transients in any hotel, motel, inn, tourist camp, tourist cabin, or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients for a consideration, there is hereby imposed, in addition to all other taxes of every kind now imposed by law, a privilege or license tax, in an amount to be determined by the application of the rate of six and one-half percent of the charge of such room, rooms, lodgings, or accommodations, including the charge for use or rental of personal property and services furnished in such rooms.(2)Additional tax. In addition to the tax levied in subsection (1), above, there is hereby imposed an additional charge of $3.00 per night per room on each person, firm, or corporation engaging or continuing within this city in the business of renting or furnishing any room or rooms, lodgings, or accommodations to transients... to be used exclusively for sports and entertainment recruitment and development, tourism and infrastructure improvements.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 3).
Full Breakdown
00 per room per night earmarked for sports and entertainment recruitment, tourism and infrastructure improvements. ' Sec. 3A-6-4 requires anyone engaging in this business to first obtain a license from the finance department, and no license issues to an operator who has not complied with the chapter. Sec. 3A-6-5 sets the filing mechanics: a monthly return is due on or before the 20th of the month following the month the tax accrued, reporting gross receipts, exempt amounts, tax due, and the number of rooming nights; an annual reconciliation return is separately due by January 31.
Payments mailed and postmarked by the due date count as timely; a due date falling on a weekend or city holiday rolls to the next working day without penalty. Sec. 3A-6-3 exempts rentals or services already taxed under other specified state provisions and cross-adopts every exemption available under the state lodgings tax, Code of Ala. 1975, tit. 40, ch. 26. Sec. 3A-6-2(3) also folds in the definitions, exceptions, procedures and penalties of the state Lodgings or Transient Occupancy Statutes wherever the city chapter is silent.
Violations & Fines
Failing to timely file or pay draws a 10% penalty (or $50, whichever is greater) plus 1% monthly interest under Sec. 3A-6-12. Fraud-related underpayment carries a 50% penalty, and a frivolous appeal to the director of finance or circuit court draws $250 or 25% of the disputed tax, whichever is greater. Under Sec. 3A-6-23, failing to pay, report or keep records, or refusing to permit examination of records, is a misdemeanor punishable by a fine of $25 to $500 per offense plus up to six months' imprisonment, with each month of noncompliance a separate offense. Operators may not absorb the tax or advertise a refund of it; doing so is a separate misdemeanor fined $50 to $100.
Frequently Asked Questions
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Sources & Official References
Other rules in Birmingham
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Transient Occupancy Tax in Nearby Cities
How other cities in Jefferson County handle transient occupancy tax.