| Alabama | 4.00% |
| Baldwin County | 3.00% |
| City + District Rates Range | 1.50% – 3.95% |
| Combined Sales Tax Rates Range | 8.50% – 10.95% |
Businesses are required to collect sales tax in Baldwin if they have a sales tax nexus in Alabama and sell to residents of Baldwin.
Physical Nexus: This occurs when a business has a tangible presence in the state. Examples include having a store, warehouse, office, or employees in Alabama. If your business operates any of these within the state, then it means you have a physical nexus and you must collect sales tax from customers in Baldwin. Economic Nexus: This is based on the volume of sales or the number of transactions a business conducts in the state. For instance, if your business exceeds a certain threshold of sales or transactions in Alabama, which is often defined as a specific dollar amount or number of transactions, you establish economic nexus. This means even if you don’t have a physical presence in the state, you are still required to collect sales tax from customers in Baldwin.
