Alabama’s back-to-school sales tax holiday will begin this month, allowing students and parents to purchase school supplies without the usual 4% tax.
The holiday begins on Friday, July 17, and ends at midnight on Sunday, July 19. During that time, certain school and art supplies, as well as computers, books and clothing, will be tax-exempt.
This year, the dollar limit on exemptions for certain items has increased after actions taken by the Alabama Legislature in 2025.
For clothing, the exemption limit is $156 or less, up $56 from last year. For school supplies, the limit is $78 or less, up from $28. The limit for a single purchase of computers or other electronic devices is $1,173 or less, up $425. The limit for books is $47 or less, while textbooks have a higher limit of $78; both are up from $30 the previous year.
"The expanded exemption limits make this year's tax holiday even more valuable for Alabama families," said Rick Brown, president of the Alabama Retail Association. "These changes help consumers purchase the items they need for the new school year while also supporting Alabama retailers in their local communities."
In addition, more than 300 cities and counties across the state are waiving their local sales taxes for the same period, allowing citizens to save even more. A full list of participating counties and municipalities can be found here.
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