Alabama passed a law that allows for a statewide sales and use tax exemption for many menstrual and maternity products which will be in effect September 1, 2025, through August 31, 2028. Under the act, many maternity related products will be exempt from sales tax, including maternity clothing, breast pumps, baby formula, bottles, diapers, and wipes. Many menstrual health items, such as tampons, menstrual cups, or sanitary napkins are also included, but the law’s definition of menstrual products does not include garments such as period underwear. This law also does not apply to any county or municipal level sales or use taxes on included products.
Retailers who sell these types of items will need to prepare and ensure they have a way to mark these items as exempt for only state level taxes before the bill goes into effect. Both end clients and retailers will also need to be aware of any local taxes on these items and if exemption is granted at local levels, the expiration date for the state’s exemption, and if any extensions are granted in the future. (Alabama HB 152, Act #2025-304, signed by Governor Kay Ivey May 9, 2025)