Alabama shoppers will see two major sales tax changes at the register starting today.
The state’s sales tax on groceries drops from 3% to 2%, and a new three-year exemption removes the 4% state sales tax from a list of baby, maternity and menstrual products.
Under the grocery change, the 2% rate applies to “food” as defined by the federal SNAP program, excluding alcohol, tobacco and hot prepared foods.
A cut to the sales tax on groceries was first passed by the Alabama Legislature in 2023.
Lt. Governor Will Ainsworth led the charge and garnered unanimous support behind State Sen. Andrew Jones (R-Centre) and State Rep. Danny Garrett’s (R-Trussville) measure to implement a gradual reduction, tied to a 3.5% year-over-year increase in Education Trust Fund revenues.
At that time, it stood