A two-month state grocery tax holiday for Alabama shoppers starts on Friday.

Gov. Kay Ivey recently signed legislation into law temporarily suspending the state’s 2% portion of the grocery tax for two months beginning in May. The temporary grocery tax holiday is scheduled to end on June 30. It doesn’t apply to local grocery taxes.

The legislation, sponsored by State Rep. James Lomax (R-Huntsville) and State Sen. Arthur Orr (R-Decatur), provides an income tax deduction for qualified overtime compensation, up to $1,000. 

An uncapped overtime tax cut sponsored by House Minority Leader Anthony Daniels (D-Huntsville) was passed into law in the 2023 session, but the state’s Republican supermajority let it expire in June 2025. 

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