In force 🚨 Action required Rate change

Irondale, Huntsville, Madison and Gadsden, Alabama raise local taxes from 1 October 2026

This page records one dated change. For the rules in United States as they stand today, see the United States guide →

Jurisdiction
United States
Tax
Sales Tax
Change type
Rate change
Status
In force
Impact
Action required
Effective
1 October 2026
Authority
Alabama Department of Revenue (revenue.alabama.gov)
Systems
Tax engine
Verified
Fetched from official source · high confidence
Who this affects

Motor vehicle, truck trailer, semi-trailer and house trailer dealers in Irondale, and lodgings providers in Huntsville, Madison and Gadsden, Alabama.

What to do

Update Irondale vehicle sales tax and Huntsville, Madison and Gadsden lodgings tax rates from 1 October 2026.

Tax engine

The change

Alabama Department of Revenue local tax notices dated 21 September 2026: the City of Irondale (Ordinance No. 2026-23) raises its sales tax on the net difference paid for automotive vehicles, truck trailers, semi-trailers and house trailers from 2% to 2.25% from 1 October 2026; Huntsville and Madison raise their lodgings tax rates from 9% to 10%, and Gadsden (Ordinance No. O-22-26) from 5% to 10%, from the same date.

What changed in detail

Alabama Department of Revenue local tax notices dated 21 September 2026, all effective 1 October 2026:

  • Irondale (Jefferson County), Ordinance No. 2026-23: the sales tax on the net difference paid for automotive vehicles, truck trailers, semi-trailers and house trailers rises from 2% to 2.25%.
  • Huntsville and Madison: lodgings tax rises from 9% to 10%.
  • Gadsden, Ordinance No. O-22-26: lodgings tax rises from 5% to 10%.

What it means

Two different tax bases move in the same batch — a motor-vehicle sales tax in Irondale and a lodgings tax across three cities — so a rate feed organized by tax type needs to route both. Gadsden’s lodgings tax doubling (5% to 10%) is the largest single jump and the one most likely to surprise a hospitality operator relying on last quarter’s rate.

Proof

On July 21, 2026, the governing body of the City of Irondale adopted Ordinance No. 2026-23 levying a sales tax effective October 1, 2026.
Irondale local tax rate change notice (Ordinance No. 2026-23) — Alabama Department of Revenue · captured 27 September 2026
Screenshot of Alabama Department of Revenue captured 27 September 2026, showing the quoted passage Source snapshot of the official page. Open full size ↗
adopted Ordinance No. O-22-26
Gadsden lodgings tax rate change notice (Ordinance No. O-22-26) — Alabama Department of Revenue · captured 27 September 2026

Archived from the official distribution · Ordinance No. O-22-26 · www.revenue.alabama.gov

Sources

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