Alabama grocery tax waived through June. What to know.

Governor Kay Ivey has signed legislation that will suspend the state’s portion of the grocery tax from May 1 to June 30, 2026.

The state sales tax for groceries is 2%.

The legislation was sponsored by Rep. James Lomax and Sen. Arthur Orr.

“I am also glad we are able to put a two month pause on the state’s portion of the grocery tax to help families across Alabama. Any time we can responsibly provide some relief for the hardworking people in our state, I am all for it.”

Governor Kay Ivey

Lowering the state’s grocery tax has been a priority for the state for the Alabama Legislature. This is the third piece of legislation signed into law lowering state sales taxes in the last four years. 

In 2022, the state sales tax was lowered from 4% to 3%. In 2024, the tax was lowered again another percentage point to 2%.

Alabama remains one of only ten states in the country that rely on sales taxes.

In addition to the sales tax pause, the bill Governor Ivey approved also extended the income tax deduction for overtime compensation until 2028.