State grocery tax to drop by 1% on Friday

You will get a bit of a break on your grocery bill in Alabama starting Friday, September 1.

That’s when the state will begin removing some of the state sales tax on groceries.

Alabama had been one of only three states to tax groceries at the full rate as other products. But earlier this year, the legislature and Gov. Kay Ivey decided to gradually change that.

Starting Friday, the state’s 4% tax on groceries will go down to 3%. That means you’ll save $1 on $100 worth of groceries.

Then on September 1, 2024, the state tax will go down to 2%, but only if other tax revenue can make up for the loss to the state education budget. Otherwise, that additional cut will have to wait until that requirement is met.