Alabama buyers have one thing to stay up for this weekend: Again-to-school financial savings. Savvy buyers should purchase faculty provides, computer systems, and clothes free from the state’s gross sales tax. This can be a huge deal since Alabama has one of many highest gross sales tax charges within the U.S.
In fact, the tax vacation is simply one of many methods the Cotton State is slicing again on gross sales tax this 12 months.
You will have heard in regards to the current state tax exemption on diapers, or that Alabama’s grocery tax is due for one more discount in September.
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Right here’s what it is advisable to know in regards to the Alabama tax-free weekend and the state’s gross sales tax legal guidelines within the coming months.
When is tax-free weekend in Alabama?
The annual back-to-school Alabama gross sales tax vacation runs from 12:01 AM on Friday, July 18 till midnight on Sunday, July 20.
Throughout this time, many forms of faculty provides (together with computer systems and tablets) and clothes are exempt from Alabama’s standard 4% gross sales tax charge.
What’s included within the Alabama tax-free weekend?
The Alabama tax-free weekend contains clothes, faculty provides, books, and electronics, like computer systems.
Clothes is tax-free in the course of the Alabama gross sales tax vacation so long as each bit doesn’t exceed $100.
Tax-exempt clothes objects embody jackets, denims, footwear, belts, hats, and diapers (although diapers are about to be made briefly state gross sales tax-free for an extended interval — extra on that later).
What clothes isn’t tax-free? Just a few objects are usually not thought of clothes. Listed here are a couple of examples of things you continue to should pay tax on in the course of the Alabama tax-free weekend:
- Athletic gear (shin guards, shoulder pads, curler skates, athletic footwear, or sports activities gloves).
- Jewellery, watches, and hair equipment.
- Purses and briefcases.
- Cosmetics (together with make-up).
- Sun shades, eyeglasses, and contacts (prescription or nonprescription).
- Belt buckles.
Just a few eligible electronics and different faculty provides are tax-exempt in the course of the tax-free weekend.
Nevertheless, non-educational video video games and laptop components which might be offered individually don’t qualify.
Alabama has a tax-free vacation on electronics. Eligible purchases embody computer systems and printer provides (printer paper, printer ink) in addition to flash drives and tablets.
- Purchases can not exceed $750.
- Objects produced solely for recreation don’t qualify.
College provides are eligible for the Alabama tax-free weekend.
Virtually all faculty provides are honest recreation in the course of the Alabama gross sales tax vacation.
To qualify, every merchandise should price $50 or much less.
- Artwork provides (paints, clay, drawing pads, scissors, and so forth.).
- Ebook luggage, lunch containers, binders, notebooks, and folders.
- Calculators and writing tablets.
- Many books with a gross sales value of $30 or much less per e book.
- Required textbooks on an official faculty e book listing, with a gross sales value of greater than $30 and fewer than $50.
Observe: Though many faculty provides are tax-free, some are usually not. Objects used for “clear room attire and gear” are usually not tax-free, together with cleansing provides, paper towels, and hand sanitizer.
For a full listing of qualifying objects, go to the state’s Division of Income web site.
Alabama tax-free diapers plus financial savings on child merchandise and extra
You should purchase diapers tax-exempt throughout Alabama’s tax-free weekend. Quickly you received’t have to attend for a tax vacation, although.
That’s as a result of Alabama just lately handed laws that may briefly eradicate state gross sales tax on widespread household necessities. Along with diapers, different objects will quickly be state gross sales tax-exempt:
- Child system and bottles.
- Pump gear and child wipes.
- Maternity clothes and female hygiene merchandise.
Alabama will exempt these merchandise and diapers from state gross sales tax starting September 1, 2025. Nevertheless, the gross sales tax exemption is momentary and can expire on August 31, 2028, until future laws extends the availability.
Alabama grocery tax reduce: Meals taxes
Alabama is likely one of the states that also taxes groceries. But the Cotton State just lately handed laws to scale back the gross sales tax on grocery objects within the coming months.
Starting September 1, 2025, the Alabama grocery tax charge will cut back from 3% to 2%. However the Alabama grocery tax reduce could have come at a value.
As reported by Kiplinger, a previous Alabama legislation made earnings earned from additional time (hours exceeding 40 per week) exempt from state taxes. The legislation, which went into impact final 12 months, expired earlier in 2025.
In accordance with the Institute on Taxation and Financial Coverage (ITEP), the “no tax on additional time” provision was initially anticipated to price Alabama $34 million in income. Nevertheless, the entire price grew to be about 10 occasions as a lot.
“Because of this, Alabama lawmakers selected to not renew [no tax on overtime],” studies ITEP, “As an alternative utilizing the financial savings to scale back the state’s grocery tax and fund different priorities.”
In the meantime, with a gross sales tax reduce on groceries from 3% to 2%, Alabama residents will see a $1 discount for each $100 spent on eligible grocery objects.
