MONTGOMERY, Ala. – In case you haven’t noticed yet, the state sales tax on most grocery items declined by 1 percentage point to 2% this week. It’s the second such cut since 2023. The decrease, approved by lawmakers and Gov. Kay Ivey earlier this year, is expected to have a nearly $122 million impact on Alabamians – and the state’s Education Trust Fund, which supports education.
“The Legislature has been over the last several sessions reducing taxes and we’re happy that we’ve cut the grocery tax 50%,” Representative Danny Garrett announced this past Friday. Garrett, R-Trussville, is chairman of the House education budget committee and sponsored this year’s legislation.
“We expect there’ll be more tax relief provided in the future,” Garrett said. “Part of our mindset is that we’re going to continue to provide tax relief on a measured basis.”
Advocates for years have argued the sales tax on food disproportionately hurts the low-income. They’re celebrating this latest decrease and pushing for further reductions in the future. The state grocery tax reduction from 4% to 3% came in 2023, and this year’s reduction to 2% continues that trend.
