Alabama's 2% state grocery tax came back on July 1
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Act 2026-604 suspended the state sales and use tax on food from May 1 through June 30, 2026. The suspension expired. The 2% state rate applied again to SNAP-eligible food on July 1. That rate had already fallen from 3% to 2% on September 1, 2025 under Act 2025-305. City and county taxes on food sat outside the suspension entirely, which left grocers running a split rate for two months. During the suspension, retailers still reported gross food sales within total gross proceeds on the state return and then deducted the qualifying food sales. Food follows the SNAP definition at 7 U.S.C. 2011, so alcohol, tobacco and hot food ready for immediate consumption fall outside it and were taxed throughout.
