‘Historic’ tax cut on groceries approved by Alabama Legislature

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‘Historic’ tax cut on groceries approved by Alabama Legislature
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The gradual, two percent grocery tax cut — which could be fully implemented by September 1, 2024 — is estimated to bring an estimated $300 annual savings in the typical Alabama family’s grocery bill. It needs GovernorKayIvey's approval to become law. 🛒

Even with the tax cut, shoppers will still be assessed an overall sales tax on groceries. Cities and counties will continue to assess sales taxes on groceries.

The sales taxes on groceries can be as high as 10% in some cities, like Mobile and Montgomery. Aside from the 4% state sales tax, Mobile shoppers are also assessed a city tax rate of 5% and a Mobile County rate of 1%. In Montgomery, the city assesses a 3.5% sales tax rate and Montgomery County assesses a 2.5% rate.

“We always urge the Legislature to only exempt the state portion of the tax,” Brasfield said. “We do not believe it is appropriate for the Legislature to mandate exemptions on county sales taxes. Local taxes are levied, in many cases, for specific local services and activities that are vital to the community. For that reason, the Association has always taken a very public and consistent stance against the Legislature passing exemptions from local sales taxes.

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