Why Alabama needs to untax groceries

• The grocery tax increases hunger rates and drives many struggling families deeper into poverty.
• Alabama’s tax system is upside down. On average, people with low incomes pay a much higher share of their income in state and local taxes than the wealthiest households do.
• The grocery tax is a major reason that Alabama’s tax system is so upside down. Grocery taxes take a much bigger bite out of household budgets for Alabamians with low and middle incomes than for wealthier people.
• Most states have rejected the grocery tax. Alabama is one of only nine states still taxing groceries.

How HB 336 would help people across Alabama

• HB 336 by Rep. Penni McClammy, D-Montgomery, would end the state sales tax on groceries starting on Sept. 1, 2026. This would build on progress made in 2023, when the Legislature reduced the tax from 4% to 3%, and in 2025, when lawmakers reduced the tax again from 3% to 2%.
• Ending the remaining 2% state grocery tax would save an average Alabama family of four about $250 to $300 a year.

Bottom line

Alabama’s grocery tax is a cruel tax on survival. Lawmakers should pass HB 336 to eliminate the state grocery tax once and for all. They also should identify more sustainable, less harmful options to fund public education and other vital services.