Mobile lodging guests pay roughly 12 percent in combined occupancy taxes, including the city's 8 percent hotel tax plus Alabama's 4 percent state lodging tax, collected by the property and remitted monthly.
Mobile hotels, motels, and short-term rentals collect a combined occupancy tax burden of roughly 12 percent on each booking. The city of Mobile imposes an 8 percent lodging tax, and Alabama state law adds a 4 percent state lodging tax under Alabama Code Title 40. Operators register with the Mobile Revenue Department and the Alabama Department of Revenue, file monthly returns, and remit collected taxes. Short-term rental hosts on platforms like Airbnb and Vrbo carry the same tax obligations as hotels, even when platforms collect on the host's behalf in some cases.
Failing to register, collect the full 12 percent rate, file monthly returns, or remit collected taxes risks penalties, interest, and business license suspension.
See how Mobile's transient occupancy tax rules stack up against other locations.
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