Alabama Statewide Lodgings Tax on Short-Term Rentals

Under Alabama Code Title 40, Chapter 26, hosts must collect and remit a state lodgings tax of 5% in mountain lakes counties and 4% elsewhere on the gross proceeds from short-term rentals under 180 days. Short-term rental marketplaces such as Airbnb have voluntary collection agreements with the Alabama Department of Revenue. Local lodgings taxes also apply in addition to the state rate. Hosts must register for a tax account, file monthly returns, and remit payments by the 20th of the following month. The tax is universal regardless of municipality.

Failure to collect or remit lodgings tax results in penalties up to 10% of tax due, plus interest, and possible criminal misdemeanor charges for willful evasion.