AL sales tax bonds.
$750 flat. Soft pull.

Alabama's Department of Revenue can require a retailer to post a sales tax bond — most commonly after a final assessment goes unpaid. The statutory minimum is $25,000 for a two-year period; ours is $750 flat, a flat 3% of the bond amount, with one soft credit pull.

Required by the Department of Revenue under Ala. Code §40-23-6 — often after non-compliance
$25,000 minimum, two-year bond — set by statute; larger amounts scale with your liability
Soft credit pull only — never affects your score, and the rate stays 3% either way
A-ratedA.M. Best carriers1–2 daystypical issuance1–3 yrterms available
Trusted by industry leaders
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Three steps to filed.

The Department of Revenue is waiting on this bond. Here's the entire process — no broker phone tag:

TODAY · 5 MINUTES

Apply once, online

Business details, owner information, effective date, and whether the bond is due to non-compliance. The only extra step is a one-time consent to a soft credit pull.

WITHIN 48 HOURS

Reviewed & approved

Most of these clear quickly; if underwriting needs anything, you hear from an underwriter within 48 hours. The credit check is a soft pull that never affects your score.

1–2 BUSINESS DAYS

E-sign & file with the Department of Revenue

Pay online and receive the executed bond ready to file on the department’s Sales Tax Surety Bond form. Wet-ink originals mailed whenever the state insists.

The whole pricing page.

$25,000 bond × 3% = $750, one-time per term. Statutory minimum amount; a soft pull affects approval, never price.

1-year term
$750
2-year term
$1,500
3-year term
$2,250
About this bond

What it is and who needs it.

What the sales tax bond actually covers

Alabama's Department of Revenue can require a retailer to post a sales tax bond under Ala. Code §40-23-6. The bond is filed on the department's Sales Tax Surety Bond form and is conditioned on the licensee collecting and remitting sales tax — it is payable to the Commissioner of Revenue.

The most common trigger is non-compliance: if a sales tax balance is still due once a final assessment is no longer subject to appeal, the taxpayer is deemed non-compliant and must post a one-time bond for a two-year period. Under §40-23-6(c)(1), the amount is the actual sales tax liability for the three months before the non-compliant period, but not less than $25,000.

Certain new or reinstating retailers also post a one-time $25,000 two-year bond on licensing. The bond stands behind the tax you owe — if you fail to remit, the state can recover against it, and if the surety pays, you repay the surety. We issue the bond at a flat 3% with one soft credit pull.

Ala. Code §40-23-6 (Sales Tax Surety Bond)Under Ala. Code 1975 §40-23-6, the Alabama Department of Revenue may require a sales tax surety bond for a two-year period, conditioned on collecting and remitting sales tax and payable to the Commissioner. For a non-compliant taxpayer, §40-23-6(c)(1) sets the amount at the actual sales tax liability for the three months preceding the non-compliant period, but not less than $25,000. Confirm your required amount on your Department of Revenue notice.

You need this bond if you're

A retailer deemed non-compliant after an unpaid final sales tax assessment
Applying for or renewing a license the department conditions on a $25,000 two-year bond
Reinstating a cancelled license that triggered a bond requirement
Selling beer, wine, or tobacco as a new taxpayer the department asks to bond

Five minutes. The whole thing.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is typically issued within 1–2 business days.

Start the application →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

How much is the Alabama sales tax bond? +
For the statutory $25,000 minimum, the premium is $750 — a flat 3%. If the Department of Revenue set a higher amount (your three-month liability can exceed $25,000), the premium is still a flat 3% of that figure. Send us your notice and we’ll confirm.
Why am I being asked for this bond? +
Usually because of non-compliance — a sales tax balance still due once a final assessment can no longer be appealed. Under §40-23-6(c)(1) that makes you post a two-year bond of at least $25,000. Some new and reinstating licensees post one as well.
Do I pay the $25,000? +
No. You pay $750 (for the $25,000 amount). The bond amount is the surety's maximum liability to the state — it's not a deposit, and nobody holds your money.
Is there a credit check? +
Yes — one soft credit pull, which never affects your score. It informs approval, not price. The rate is a flat 3% either way: credit can affect whether we approve the bond, never what it costs.
How long does the bond run? +
The sales tax bond is a one-time bond for a two-year period under §40-23-6. We can structure the term to match; you’ll get renewal notices 60 and 30 days before expiration, with autopay available.
Related bonds

Other New York bonds.

The Department of Revenue is waiting on one document.

$750 flat for the $25,000 bond, five-minute application, e-signed bond in 1–2 business days. Free until issued.

Your premium @ 3%$750
Apply now →