Alabama Lawmakers Slash Sales Tax Rate on Groceries to 2%

Alabama shoppers will see lower grocery bills under legislation headed to Gov. Kay Ivey (R) that cuts the state sales tax rate on food from 3% to 2%.

The state Senate and House unanimously approved HB 386 Tuesday, which directs the state to reduce the tax rate on groceries beginning Sept. 1. The action comes after lawmakers cut the rate on food from 4% to 3% on Sept. 1, 2023. Since that reduction, Ivey has voiced support for additional cuts and is widely expected to sign HB 386.

• The advocacy group Alabama Arise applauded the legislative action and called ...