Montgomery, Ala. (WDNews) —
Alabama lawmakers have taken a big step toward helping families save money at the checkout line.
Two companion bills—House Bill 386 and House Bill 387—aim to reduce the sales tax on groceries even further and give local governments more flexibility to cut their rates too.
The law will drop state sales tax on food from its current 3% to just 2%, starting September. This cut is the second phase of a broader plan that already reduced the grocery tax from 4% to 3% in 2023.
Meanwhile, House Bill 387 would give counties and cities more control over their own food tax rates. Right now, local governments can only reduce their tax by 25% if their general fund grows enough.
The new law removes that limit and the growth requirement, allowing local officials to make deeper cuts if they choose.
Supporters say the tax cuts would ease financial pressure on families struggling with high grocery bills. Unlike many states, Alabama still charges a full sales tax on most food items.
That’s a big hit for low-income households.
If passed, the bills would allow cities and counties to opt in to bigger savings, potentially slashing the cost of basics like milk, bread and produce.
