Alabama Suspends State Food Tax May-June 2026 Under Act 2026-604
Summary
Alabama DOR announces temporary suspension of state sales and use tax on food under Act 2026-604. Suspension period runs May 1 through June 30, 2026. Local city and county food tax rates remain unaffected. Retailers must continue reporting gross sales of qualifying food items while deducting qualifying food sales from state tax calculations.
What changed
Alabama DOR provides notice of temporary suspension of the state portion of sales and use tax on food pursuant to Act 2026-604. The suspension applies only to state-level food taxes from May 1 through June 30, 2026. Qualifying food items are defined per SNAP eligibility under 7 U.S.C. § 2011, generally excluding alcoholic beverages, tobacco, hot foods, and ready-to-consume items. Local food taxes are not affected by this suspension.
Retailers must continue reporting gross sales of qualifying food items in total gross proceeds on state tax returns, then subtract qualifying food sales from the amount used to calculate state sales tax. Local tax reporting requirements remain unchanged. Affected parties should review SNAP-eligible food definitions to ensure proper classification and consult ALDOR's Sales Tax Administration Section with questions.
What to do next
- Continue reporting gross sales of qualifying food items on state tax returns
- Deduct qualifying food sales from state sales tax calculations during suspension period
- Continue reporting local food taxes per each locality's rate
Archived snapshot
Apr 18, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Category Notices Related Division Sales and Use
Posted: April 17, 2026 In accordance with Act 2026-604, the state portion of the sales and use taxes on food shall be suspended for the period of May 1, 2026, through June 30, 2026.
The city and county sales and use tax rates on food are not affected by this act.
Reporting of Grocery Sales During the Suspension Period
Retailers must still report all gross sales of qualifying food items in their total gross proceeds on the state tax return and then subtract (deduct) the qualifying food sales from the amount used to calculate state sales tax.
Local tax reporting continues according to each locality’s rate.
Food has the same meaning as defined in 7 U.S.C. § 2011, for the purposes of the federal Supplemental Nutrition Assistance Program (SNAP). SNAP eligible food items generally include any food or food product for home consumption, except alcoholic beverages, tobacco, hot foods, or hot food products ready for immediate consumption. For additional information on SNAP eligible and ineligible items, visit https://www.fns.usda.gov/snap/eligible-food-items.
If you have questions, contact ALDOR’s Sales Tax Administration Section.
Contact
Sales and Use Tax Division
Sales Tax Administration Section
PO BOX 327710
MONTGOMERY AL 36132-7710
334-242-1490
Download a pdf of this notice.
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