Alabama’s 60-day grocery tax holiday is now in effect, reducing the state grocery tax from 2 percent to 0 percent starting May 1 and continuing through June 30. The temporary reduction, instituted through House Bill 527 by state Representative James Lomax, R-Huntsville, has garnered praise from local organizations, including Alabama Arise, who have long advocated for the tax’s complete elimination.
“Two months is a good start toward forever,” said Robyn Hyden, Alabama Arise’s executive director, in reaction to the tax holiday taking effect. “Eliminating the state grocery tax—even temporarily—will make it easier for every Alabamian to make ends meet, especially in this time of persistently high food prices. People who are struggling to make ends meet will benefit the most of all.”
While Hyden praised the temporary tax break, she also reaffirmed Arise’s commitment to permanently eliminating the state’s tax on groceries.
“The grocery tax is a cruel tax on survival,” Hyden stated. “It drives many families deeper into poverty, and Alabama Arise remains committed to the goal of eliminating it entirely. Arise members from every corner of our state have advocated tirelessly for decades for Alabama to untax groceries. And our work will continue until the state grocery tax is a thing of the past.”
Alabama is one of only eight states in the country that currently has a tax on groceries, joined by Hawaii, Idaho, Mississippi, Missouri, South Dakota, Tennessee and Utah. Meanwhile, several other states have opted to eliminate their grocery tax in recent years, including Arkansas (2026), Illinois (2026), Kansas (2025) and Oklahoma (2024).
While proponents of Alabama’s grocery tax note that it serves as an important source of state revenue, Arise and others argue that there exist several funding alternatives that would prevent any loss of revenue while also lessening the financial burden on working families in the state.
“As we work to untax groceries, we also must protect funding for our children’s education,” said Hyden. “Lawmakers should work together to end the state grocery tax sustainably and responsibly without harming Education Trust Fund revenues.”
“Arise is open to numerous ideas for replacement revenue,” Hyden added. “We continue to support our longstanding proposal to replace grocery tax revenue by capping or ending the state income tax deduction for federal income tax payments. Alabama is the only state to allow this full deduction, which overwhelmingly benefits the wealthiest households. Closing this loophole would protect funding for public schools and ensure Alabama can afford to end the state sales tax on groceries forever.”
With Alabama’s grocery tax already cut in half by reductions in 2023 and 2025, and with organizations like Arise continuing to apply pressure to state lawmakers, the current 60-day holiday may ultimately pave the way for an eventual complete repeal of the state’s tax on groceries–only time will tell.
