Alabama’s state sales tax on groceries won’t be cut by another one cent on Sunday.
The Alabama Department of Revenue (ALDOR) officially announced on Friday that Alabama’s state sales tax on food will remain at 3% on September 1.
“If there is sufficient growth in the state Education Trust Fund for the next fiscal year, then the state rate will be reduced on September 1, 2025,” an ALDOR spokesman said. “Local governments can, by resolution or ordinance, reduce their sales and use tax rate on food by 25 percent if there is sufficient growth in their local general fund.”
Lawmakers reduced the 4% sales tax rate on groceries by 1% last September.
Passed during the legislative session in 2023, the grocery tax cut law sponsored by State Rep. Danny Garrett (R-Trussville) and State Sen. Andrew Jones (R-Centre) automatically reduced the state's sales tax on groceries by 1% on September 1, 2023. An additional 1% could be reduced as soon as September 2025 or a later year if the state projects 3.5% growth in the Education Trust Fund (ETF) for the next fiscal year.
"I'm looking forward to the day when the next phase of the grocery tax cut can be implemented for working Alabamians. Given runaway inflation on food items, my hope is that this relief will come sooner rather than later. Alabama families deserve a break," Jones told 1819 News on Tuesday.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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