Alabama Republicans plan 2% grocery tax repeal

Alabama Republican legislative leaders say eliminating the remaining 2% state sales tax on groceries will be a top priority when the 2027 session begins, and House Speaker Nathaniel Ledbetter says a bill is drafted and will be filed at the outset. The tax was reduced from 4% to 3% in 2023 and to 2% in 2025; eliminating it would save a household spending $1,000 a month on qualifying groceries about $20 monthly, or $240 annually, on top of earlier reductions. Supporters, including the Alabama Grocers Association and Alabama Arise, argue that groceries are a necessity and removing the tax would ease costs for families. The tax also helps fund K-12 schools, and a prior estimate put the potential loss to the Education Trust Fund at about $270 million; lawmakers have not publicly explained how that revenue would be replaced.