Alabama

What sits between the rack and the pump

Published rack prices exclude every tax below. A retail price less the rack price less this stack is freight plus retail margin — the spread this page exists to make computable. Cents per gallon.

County and city taxes on top

county and city gasoline and motor fuel (diesel) excise taxes, cents per gallon, where a current ALDOR page or form or the jurisdiction's own page gives the rate; inside city limits (police-jurisdiction rates, usually half, are not included). Most Alabama localities levy one; the only public statewide list (ALDOR, October 2019) is too old to use, so most are not yet tabulated.

Baldwin County Commission, Sales & Use Tax 'Tax Rates' page, Motor Fuel Tax row, retrieved 2026-10-31

ALDOR, County Fuel Taxes tax-type page, 'Rates' section, retrieved 2026-10-31

Tuscaloosa County Special Tax Board, Tuscaloosa County Motor Fuel Tax Return (PDF uploaded 2026-09), Tax Calculation block

City of Huntsville, Finance, City Taxes > Tax Types & Rates > Gasoline Tax Rate page, retrieved 2026-10-31

Download every state (CSV) Open the tax map

The state's own answers

From the Federation of Tax Administrators survey "Motor Fuel Tax Information by State" (2026-10-29), as the state's tax agency answered it. Not tax advice: check the agency before relying on a figure.

Point of taxation

Select all that apply for each fuel type: Gasoline: At the terminal rack Diesel: At the terminal rack Aviation Fuel: At the terminal rack Jet Fuel: At the terminal rack

Rate reported

Gasoline: $.30 per gallon (Effective July 1, 2025) / Diesel: $.31 per gallon (Effective July 1, 2025)

Gallons basis

Calculation basis: Net Gallons Please provide the reference information: Administrative Rule 810-8-1-.58

Fees

What are the fees and rates associated on reportable products (i.e. environmental fee, inspection fee)? What is the statutory reference regarding the fees on reportable products?: Alabama has a $.01 per gallon above ground and underground storage tank charge on gasoline and diesel fuel products.(Effective May 1, 2024) Statutory Reference: Sections 22-35-1 through 22-35-13, Code of Alabama, 1975. The inspection fee of $.02 was added to the gasoline excise tax and the administration of the inspection fee was transferred to the Department of Revenue effective October 1, 2016. The inspection fee rates are $.02 per gallon for dyed diesel fuel, $.01 per gallon for dyed kerosene, and $.15 per gallon for lubricating oil. Statutory Reference: Sections 8-17-80 through 8-17-102, Code of Alabama, 1975. 8 Alabama levies a wholesale oil/import license fee of $.0075 per gallon on all diesel fuel, except transmix or diesel fuel where the terminal issued shipping document shows a destination state other than Alabama, when it crosses the rack or upon import into Alabama. Statutory Reference: Section 40-17-174, Code of Alabama, 1975

Rate updates

Please list any rate updates for your state: Effective October 1, 2025, Section 40-17-370, Code of Alabama, 1975, increased the state excise tax on gasoline to $.30 per gallon and to $.31 per gallon for undyed diesel. Section 40-14-370, Code of Alabama 1975, also provides for the following additional excise tax rate increases/indexing effective October 1, 2023 and on July 1 of every other year thereafter: o The gasoline and undyed diesel excise tax rate will be adjusted by the percentage change in the yearly average of the National Highway Construction Cost Index and rounded to the nearest whole cent with the increase or decrease of the excise tax rate not exceeding $.01 per gallon. Also, Section 40-17-331, Code of Alabama 1975, levies a floor-stocks tax for the additional excise tax due on any wholesale distributor holding motor fuel in inventory outside of the bulk transfer/terminal system on the effective date of each tax increase imposed under the Rebuild Alabama Act (Act 2019-2). A floor-stocks tax return shall be filed and the tax paid on or before the last day of the third month following the tax increase. Section 40-17-168.2, Code of Alabama 1975, sets the gasoline and diesel fuel gallon equivalent rates for CNG and LNG. The Diesel Gallon Equivalent (DGE) is 6.059 pounds of LNG for one gallon of diesel fuel and the Gasoline Gallon Equivalent (GGE) is 5.66 pounds or 126.67 cubic feet for one gallon of gasoline. Effective October 1, 2018, the excise tax is $.08 per DGE or GGE. The excise tax increased to $.13 per DGE or GGE on October 1, 2023. On October 1, 2028, the excise tax will increase to the rate that is in effect on October 1, 2028 for gasoline and undyed diesel. Public sellers and fleet producers are required to post a bond and get licensed and file month

Sales tax on fuel

Does your state impose a sales tax on gasoline, clear diesel or dyed diesel?: Yes If so, how are the rates calculated? How often does the rate change? Is tax imposed on volume or value and when is it collected?: Gasoline – No, Clear Diesel – Yes, if the excise tax is refunded for off-road use, then the product is subject to the state sales tax. Dyed Diesel – Yes The state sales tax rate is 4% of the sales price. To change the rate would require an amendment to the statutes through the Legislature. The tax is imposed on value and it is collected at the retail level when the product is sold to the consumer.

Scheduled changes

Effective October 1, 2025, Section 40-17-370, Code of Alabama, 1975, increased the state excise tax on gasoline to $.30 per gallon and to $.31 per gallon for undyed diesel. Section 40-14-370, Code of Alabama 1975, also provides for the following additional excise tax rate increases/indexing effective October 1, 2023 and on July 1 of every other year thereafter: o The gasoline and undyed diesel exc

Confidence

high

Every component in force, with its source

Rows overlap by design: the best source for a component wins (hand edit, then a state notice, then the FTA booklet, then EIA). The losing rows stay for the audit trail.

How the rate has moved

Rack markets this stack applies to

• Anniston/Oxford, AL
• Birmingham, AL
• Boligee, AL
• Mobile, AL
• Montgomery, AL
• Sheffield, AL