Please be advised that the City of Mountain Brook will implement a 1% increase in the local Sales and Use Tax rate, effective April 1, 2026. We encourage you to review your systems and processes to ensure the updated rate is applied accordingly. The new changes include the following:
1. The local Sales and Use tax rate will change from 3% to 4%, affecting general and machine sales.
2. The tax rate on the sale of food items as defined in Ala. Code 40-23-1(a) and the Federal Supplemental Nutrition Assistance Program will remain at 3%.
3. The tax rate on the sale of automotive vehicles will remain at 3%.
4. This adjustment will apply to all applicable transactions occurring on or after April 1.
5. Businesses will begin remitting taxes using the new rate to the City of Mountain Brook by May 20th.
6. Ordinance No. 2186 detailing the new rates is available on mtnbrook.org for review.
In addition, the City implemented a new Excise Tax applicable to consumable vapor products that became effective on February 1, 2026. If your business sells products subject to this tax, please ensure that your business is in compliance, as required.
Please note that an announcement detailing this tax update was mailed with the 2026 business license renewal notices, posted on our website, and notices are displayed at City Hall. In addition, a monthly tax form with the updated rates for both tax types is available on our website at https://www.mtnbrook.org/finance/page/taxes.
If you have any questions or need additional information, please contact the City of Mountain Brook’s Revenue Department at 205-802-2400 or blp [at] mtnbrook.org (blp[at]mtnbrook[dot]org).
Thank you for your attention to this update.