Starting May 1 through June 30, 2026, Alabama will temporarily remove the state sales tax on most food items. The temporary tax break comes as part of Act 2026-604, which removes the state sales and use tax on qualifying food items for a two-month period. While the move is expected to reduce grocery bills for many households, shoppers should note that local taxes imposed by cities and counties will still apply and vary depending on location.
Under the new law, “food” is defined using federal guidelines tied to Supplemental Nutrition Assistance Program (SNAP). This includes grocery staples such as fruit, vegetables, meat, dairy products, and other items intended for home consumption. However, certain items will remain taxable, including alcoholic beverages, tobacco products, and hot prepared foods ready for immediate consumption. Businesses must continue to report all grocery sales on their tax returns but will deduct qualifying food sales when calculating the amount of state tax owed. Local tax reporting requirements will not change during the suspension period.
The state says that the temporary suspension is intended to provide short-term financial relief for residents facing higher food prices. While the measure only lasts two months, it could make a noticeable difference for many households this summer. The Alabama Department of Revenue encourages taxpayers and business owners with questions to contact its Sales Tax Administration Section for further guidance.
(Notice: Temporary Suspension of State Sales and Use Tax on Food, Alabama Department of Revenue, April 17, 2026)