To enter Alabama Consumer Use Tax, go to:
State Return → Taxes → Consumer Use Tax
Enter the amount of Consumer Use Tax you owe on purchases where Alabama sales or use tax was not collected by the seller.
If you did not make any qualifying purchases, enter 0, if prompted.
What Is Alabama Consumer Use Tax?
Consumer Use Tax applies when you purchase items for use in Alabama from an out-of-state seller and Alabama sales tax was not collected at the time of purchase.
This most commonly occurs with:
- Online purchases
- Mail-order purchases
- Phone orders
- Purchases from out-of-state retailers
Consumer Use Tax helps ensure that purchases made outside Alabama are taxed similarly to purchases made within Alabama.
What Purchases May Be Subject to Use Tax?
Examples include:
- Clothing
- Books
- Computers and software
- Electronics
- Furniture
- Jewelry
- Sporting goods
- Lawn and garden equipment
- Automotive parts and accessories
Before reporting Consumer Use Tax, check whether the seller already collected Alabama sales or use tax. If tax was collected, you generally do not need to pay it again.
How Do I Calculate the Tax?
Alabama provides two options:
Alabama Use Tax Table
Use the Alabama Use Tax Table if you only have general internet or catalog purchases.
Alabama Use Tax Worksheet
Use the Alabama Use Tax Worksheet if your purchases include items subject to special tax rates, such as:
- ATVs
- Off-road motorcycles
- Riding lawnmowers
- Farm machinery and equipment
- Certain food and grocery purchases
For the table, worksheet, and detailed instructions, see the Alabama Form 40 Instructions:
Purchases Not Included in the General Use Tax Table
Do not include the following when using the Alabama Use Tax Table:
- Cars and trucks
- Boats
- Trailers
- Mobile homes
- Other vehicles that must be titled or registered in Alabama
- Farm machinery and equipment subject to special tax rules
These purchases may require separate reporting or different tax calculations.