Grocery Tax

Alabama is one of just three states that still applies the full state sales tax (4%) to the sale of groceries and food items. According to data from the Tax Foundation, the average local sales tax rate in Alabama is 5.25%, meaning that many citizens are paying more than 9% taxes on groceries.

In June of 2022, inflation reached a pandemic-era peak of 9.1%, driving the price of food and everyday items higher and straining family budgets. The 4% tax on groceries impacts all Alabama families, regardless of socioeconomic status, race, gender, etc.

The Alabama Legislature should take action to permanently repeal the state portion of the sales tax on groceries, without increasing other revenue sources by a corresponding amount. Doing so would provide immediate economic relief to all Alabamians.