Taxes

A blank tax return may be obtained by contacting the Licenses & Permits Office at (205) 802-3805, by facsimile (205) 870-3590 or via email at blp [at] mtnbrook.org (blp[at]mtnbrook[dot]org)

• Local Sales and Use Tax Increase
Effective April 1, 2026, the City’s local sales tax rate will increase by 1%. Sales taxes on grocery items will remain at 3% overall. Businesses responsible for collecting and remitting sales and use tax must adjust their systems and reporting accordingly. An updated tax form will be available online April 1st.

• New Excise Tax
Effective February 1, 2026, the City has implemented a new Excise Tax applicable to consumable vapor products. The tax will be assessed at a rate of $0.10 per mL. If your business sells products subject to this tax, please ensure compliance beginning on the effective date. 

City of Mountain Brook Tax Information

Type of Tax  Rates
  Sales     4%
  Seller’s Use    4%
  Automotive     3%
  Machines      4%
  Rental /Lease    4%
  Automotive Rental   4%
  Lodging Tax   6%
  Liquor Tax    4%
  Use Tax    4%
  Wine Tax    7¢ per liter
  Discount    1.5%
   Vape   10¢ per mL

Returns must be received or postmarked by the 20th day of the month following the reporting period for which you are filing to be considered timely. 

Returns filed for Sales/Seller's Use, Rental/Lease and Use Taxes will be allowed a discount if paid by due date.    
(By law, discounts are not allowed for Lodging, Liquor and Wine taxes).

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