Alabama Sales Tax Rate Reduction on Food Effective as of September 1, 2023

Alabama recently updated the state-level sales tax rate on food, reducing it from 4% to 3%, effective September 1, 2023. This does not affect local jurisdiction rates such as city and county sales tax rates on food, although cities and counties are permitted to reduce their rate on food. If your organization or business sells food in the state of Alabama, be sure to check your local jurisdiction rates to ensure you’re charging the correct sales tax rate.

The first sales tax return where this change will be reflected is the September Sales Tax Return due October 20, 2023. Be on the lookout for these changes!

For more information, please visit the AL Department of Revenue to read the full notice or contact your BMSS professional at (833) CPA-BMSS.