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Alabama Slightly Reduces Grocery Tax

Alabama families are paying slightly less at the grocery store after a 1% reduction in the state sales tax on food took effect this month.

State lawmakers in June approved legislation to gradually remove half of the 4% state sales tax on food, capping decades of fruitless attempts at such a tax cut. The tax dropped from 4% to 3% on Sept. 1.

The state grocery tax will drop to 2% on Sept. 1, 2024, but only if tax collections to the Education Trust Fund rise at least 3.5% to offset the loss.

Currently, Tennessee has a three-month grocery tax holiday on food & food ingredients, which began on Tuesday, August 1, 2023, and ends at 11:59 p.m. on Tuesday, October 31, 2023.