Effective September 1, 2023, Alabama’s state-level sales and use tax rate on food for home consumption decreases from 4% to 3%. On September 1, 2024, the rate will further decrease to 2% if the state’s Education Trust Fund meets a specified growth requirement. If the growth requirement is not met by a specified due date, the rate will be reduced to 2% in a subsequent fiscal year when the requirement is satisfied. Note that local sales and use taxes continue to apply to sales of food for home consumption. (Alabama Sec. 40-23-61(d))