Birmingham Has Second Highest Sales Tax Rate In The U.S.

BIRMINGHAM, AL - Birmingham does not rank among the wealthiest cities in the country, but the city's sales tax rate is among the highest in the U.S. In fact, Birmingham's 10 percent sales tax rate is the second highest in the nation, behind the 10.25 percent rate in both Long Beach, California, and Chicago.

Sales taxes in the United States are levied not only by state governments but also by city, county, tribal, and special district governments. In many cases these local sales taxes can have a profound impact on the total rate that consumers pay. In Alabama, sales tax is especially significant because the state's education budget is funded by sales tax. Alabama is the only state that funds its education budget through sales tax, which has drawn criticism by many education officials, since that places a significant amount of the state's education tied to the economy.

In the most recent report by the Tax Foundation, Birmingham's sales tax rate includes a 4 percent state tax and 6 percent local tax. (For more updates on this story and free news alerts for your neighborhood, sign up for your local Birmingham Patch morning newsletter.)

Image from Spencer Platt/Getty Images