Alabama GOP Leaders Pledge to End State Grocery Tax

TL;DR: Alabama’s top GOP lawmakers pledged Friday to eliminate the remaining 2% State grocery tax in 2027. Local grocery taxes would remain.

Alabama’s Republican legislative leaders pledged Friday to eliminate the remaining 2% State sales tax on groceries, setting up an early push for permanent relief when lawmakers return in 2027.

House Speaker Nathaniel Ledbetter (R-Rainsville) and Senate President Pro Tem Garlan Gudger (R-Cullman) announced the plan Oct. 16 at Star Super Market in Huntsville. Ledbetter said legislation is already drafted and will be introduced when the session begins.

Ledbetter pledged to bring the measure to the House floor within the first few weeks of the session. In a post on Facebook, Ledbetter said, “Combined with the 50% already cut over the last four years, this will put almost $500 back into the pockets of Alabamians. The bill is drafted and will be a day one priority of the 2027 Session.

“Every Alabama family deserves to keep more of their hard-earned money, especially when it comes to putting food on the table,” Gudger said.

For a household spending $1,000 a month on qualifying groceries, repeal would save another $20 a month, or $240 a year. Combined with earlier cuts, that household would save $480 annually compared with the former 4% State rate.

Alabama cut its State grocery tax from 4% to 3% in September 2023, then to 2% in September 2025. Lawmakers also approved a two-month holiday this year, suspending the State tax during May and June.

Rep. James Lomax (R-Huntsville) who sponsored the temporary holiday, said Friday’s proposal would finish that work.

“We're going to make that holiday a permanent vacation,” Lomax said. He credited business growth and a broader tax base with making further relief possible.

Repeal also has support across party lines. Republican gubernatorial nominee Tommy Tuberville and Democratic nominee Doug Jones have both backed ending the State grocery tax. Rep. Penni McClammy (D-Montgomery) sponsored a repeal bill during the 2026 session and said the issue has long been a Democratic priority. Friday’s pledge puts the leaders of both legislative chambers behind a goal shared by both major candidates for governor.

The announced repeal targets the State’s share. City and county grocery taxes are separate and would remain unless local governments cut them. The Alabama Department of Revenue made the same distinction during this year’s temporary holiday, which left local taxes in place.

The current grocery tax rules cover foods eligible under the federal Supplemental Nutrition Assistance Program, generally food bought for home use. Alcohol, tobacco and hot foods ready for immediate consumption fall outside that definition.

Ledbetter said strong State budgets support permanent repeal. Still, Friday’s pledge must become law before shoppers see the savings.