There are no laws regarding a tenant’s right to sublet in Alabama. Therefore, a tenant’s current lease determines whether or not subletting is allowed. If a tenant is prohibited, the landlord’s written permission is required (use a Landlord Consent Form).

A tenant is subject to the lodgings tax if they sublet a property for any period of less than 180 continuous days.^[1]

If renting on a short-term basis, Alabama charges a 5% rate on the counties of Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, and Winston. All other counties are charged a 4% rate.^[2] This excludes county or city-imposed taxes (see Local Sales and Use Tax Rates).

State taxes are due each month, on or before the 20th day,^[3] unless the taxpayer elects to file quarterly, bi-annually, or annually by February 20 of said tax year. Such election is permitted if:

• Quarterly filings allowed: If the total lodging taxes for the previous year are less than $2,400;
• Semi-annual filings allowed: If the total lodging taxes for the previous year are less than $1,200 or if the taxpayer provided no more than two 30-day accommodations in the preceding year;
• Annual filings allowed: If the total lodging taxes for the previous year are less than $600 or if the taxpayer provided no more than one 30-day accommodation in the preceding year.^[4]

Making Payments – Payments of the lodgings tax can be made at the Alabama Dept. of Revenue. If using a third-party booking company (like Airbnb), payments are commonly made through the platform without requiring the taxpayer to file or register with the Dept. of Revenue.^[5]