Grocery Tax Decreases in Alabama

Grocery shopping in Alabama is now a little bit cheaper. It's due to a reduction in the state sales and use tax on food, which dropped from 3% to 2% yesterday. This follows a similar decrease in 2023, when the rate was lowered from 4% to 3%. The tax cut was signed into law by Governor Kay Ivey, and is projected to save Alabamians around $121.9 million-dollars.