Is there sales tax on groceries in Alabama?
Quick answer
Partly. Alabama taxes grocery food at a reduced 2% state rate instead of the full 4%, and local rates may still apply on top.
Alabama taxes groceries at a reduced 2% state rate after the 2023-2025 phase-down. Counties and cities may still apply their own grocery rate.
Rule summary
How Alabama treats each category.
| Grocery food (home consumption) | Reduced state rate of 2% |
|---|---|
| Prepared and restaurant food | Taxable at the full combined rate (10%) |
| Candy and soft drinks | Usually taxable even where groceries are exempt |
| Prescription medicine | Exempt |
Source: Alabama Department of Revenue · rates as published for 2026
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Alabama Department of Revenue or a tax professional before relying on it for filing.
Combined rates in Alabama
What a taxable purchase actually costs in Alabama.
Frequently asked
Answers pulled from the same rule set.
- Is there sales tax on groceries in Alabama?
- Partly. Alabama taxes grocery food at a reduced 2% state rate instead of the full 4%, and local rates may still apply on top.
- Is prepared food taxed differently than groceries in Alabama?
- Yes. Alabama treats hot, ready-to-eat and restaurant food as a taxable retail sale even where unprepared grocery food is exempt or reduced.
- Are prescription drugs taxable in Alabama?
- No. Prescription medicine is exempt from sales tax in Alabama.
More Alabama guides
Other Alabama rules that change the total.