Alabama Will Consider Eliminating Grocery Tax
Representative Danny Garrett plans to introduce legislation in early 2027 to remove the final state sales tax on groceries.
Updated on Sept. 27, 2026 in Legislative Policy
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Representative Danny Garrett is set to introduce a bill in the upcoming legislative session to eliminate the remaining state grocery tax. The move follows previous bipartisan efforts to lower the state tax rate from its original 4% level.
Why it matters
The legislation aims to complete the transition toward a zero-percent state grocery tax while ensuring budget planning protects education revenue. Proponents seek to avoid replacing lost state funds with new tax hikes elsewhere.
The proposed bill aims to abolish the current 2% state grocery tax, building on previous reductions that already removed 2 cents from the original 4% rate. The legislation explicitly prevents local governments from creating new taxes to replace the state revenue.
The players
Danny Garrett
Representative Danny Garrett is a Republican legislator from Trussville who has led efforts to reduce the state sales tax on grocery food items.
Kay Ivey
Governor Kay Ivey is the Republican Governor of Alabama who previously approved a temporary grocery tax holiday in 2026.
The details
Representative Danny Garrett intends to finalize the removal of the grocery tax during the regular legislative session starting in February. The proposal includes provisions designed to protect existing education funding without necessitating tax increases in other areas.
Timeline
In 2023, the legislature passed a grocery tax cut to 3%.
In 2025, the legislature passed a further grocery tax cut to 2%.
In May 2026, Governor Kay Ivey approved a short grocery tax holiday.
In July 2026, the temporary grocery tax holiday expired.
The next regular legislative session begins in February 2027.
Political Context
The proposal follows a pattern of bipartisan support for reducing the Alabama state sales tax on grocery food items over recent sessions. Opposition or caution from stakeholders often focuses on the potential long-term impact on state education budgets and the constraints placed on local government tax autonomy.
Residents may see the final reduction in grocery store sales tax if the bill passes, potentially lowering the total cost of food purchases at the register. The legislation also aims to prevent local governments from offsetting this change by introducing new local tax levies.
The takeaway
The proposed legislation represents the final step in a multi-year effort to phase out the state tax on groceries in Alabama. Taxpayers should monitor the upcoming legislative session to see if the bill receives the necessary support to clear the full chamber.
What happens next
The Alabama Legislature is expected to take up the proposed grocery tax bill during the regular session that begins in February 2027.
Further reading
For more on state policy developments, visit Legislative Policy.
Source note: This article includes information reported by The Trussville Tribune.
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