Alabama · AL · Money & taxes
Alabama: Are groceries taxed?
Taxed at a lower rate
Alabama taxes groceries at a 2% state rate, lower than its 4% general state sales tax rate.
The state food rate dropped from 4% to 3% in September 2023 and to 2% on September 1, 2025. A separate law suspended the state food tax from May 1 through June 30, 2026, and the 2% rate applied again after that. City and county sales taxes still apply to groceries and were not cut. "Food" follows the federal SNAP definition, so hot prepared food, alcohol and tobacco are taxed at the full rate.
What the law says
In accordance with Act 2025-305, the state sales and use tax rates on food will be reduced from 3 percent to 2 percent on September 1, 2025. ... Food has the same meaning as defined in 7 U.S.C. ยง 2011.
Sources
- Alabama DOR notice: State sales and use tax rate reduced on food beginning September 1, 2025 (Act 2025-305) Official · revenue.alabama.gov
- Alabama DOR notice: Temporary suspension of state sales and use tax on food (Act 2026-604) Official · revenue.alabama.gov
- Alabama DOR: Sales and use tax rates Official · revenue.alabama.gov
Confirm with the state
- Agency
- Alabama Department of Revenue, Sales and Use Tax Division
- Phone
- 334-242-1490
- Website
- revenue.alabama.gov
How bordering states compare
- Florida Groceries exemptFlorida exempts food products for human consumption, meaning groceries, from its 6% state sales tax.
- Georgia Groceries exemptGeorgia exempts groceries from its 4% state sales tax, but local sales taxes generally still apply to them.
- Mississippi Taxed at a lower rateMississippi taxes groceries at 5%, lower than its 7% general sales tax rate.
- Tennessee Taxed at a lower rateTennessee taxes groceries at a reduced 4% state rate, compared with its 7% general state sales tax rate.