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.

Alabama on the 50-state map. See all states

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

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

Last verified · Confidence: High · How we research · Report an error

High confidence: an official source names this explicitly, and the quote above shows it.