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food tax is cut, scissors cutting the state of Alabama, fruit cut in half,

ALABAMA FOOD TAX CUTS

Governor Ivey signed a bill lowering the state food tax rate from 4% to 3% on September 1, 2023. In 2024, the tax will be lowered to 2%. Although it’s contingent on the projections for the Education Trust Fund raising by 3.5% for 2025.

Currently only 12 states impose a grocery store tax according to AL.com.

Governor Ivey explained “as Alabamians and Americans alike are grappling with tighter times, I am hopeful that this decision by the Legislature to slightly reduce the sales tax on certain food items will be truly felt by Alabama families”.

Kay Ivey at a podium

At Aldridge Borden, we realize the importance of staying up to date on legislation involving tax issues. If you would like to learn more about how we can help you, contact us.

© 2023

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