Alabama Grocery Tax Decreases Monday

September 1, 2025

Shoppers in Alabama will get a little savings on groceries beginning today.

Alabama’s grocery tax decreases from 3% to 2% on Monday under a house bill signed by Gov. Kay Ivey in May.

But that’s not all you will pay. County and municipal taxes will remain the same. That means in Atmore, for example, you’ll pay the 2% state tax on groceries, plus 2% Escambia County tax, plus 4% Atmore city tax — that’s a total of 8% tax on groceries in Atmore as of Monday. A $100 grocery purchase in Atmore would mean $8 in tax.

There is no tax on groceries in Florida.

Comments

2 Responses to “Alabama Grocery Tax Decreases Monday”

  1. LouLou on September 1st, 2025 10:26 am

    As an Alabama resident I can confirm that it’s not going to be the help they claim, because everything else went up to cover the lost revenue for the counties, cities. Ex: car tags doubled even on vehicles over 20 yrs old. Property taxes, utilities,…..So they giveth and taketh away at same time.

  2. Surprising Taxes in AL on September 1st, 2025 10:03 am

    I was searching for sales tax rates on the Eastern Shore. Coming across the City of Spanish Fort’s website, I was stunned that taxes at different locations inside of Spanish fort itself varied by location as to what shopping center it was. As high as 10.95%!