Update: The back-to-school Alabama sales tax holiday has ended.
The annual back-to-school Alabama sales tax holiday ran from 12:01 AM on Friday, July 19 until midnight on Sunday, July 21.
This meant that many purchases were tax-free in the state. Savvy shoppers saved on school items and supplies (not just for K-12 students) as well as necessities for the whole family. This was a big deal since Alabama has one of the highest sales tax rates in the United States.
But there were exclusions, and local sales taxes may still have applied.
When was tax free weekend in Alabama?
The annual back-to-school Alabama sales tax holiday ran from 12:01 AM on Friday, July 19 until midnight on Sunday, July 21. During this time, many types of school supplies (including computers and tablets) and clothing were exempt from Alabama’s usual 4% sales tax rate.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You could have saved even more if you shopped in a participating county (more on that below).
What was included in Alabama’s tax-free weekend?
Clothing was tax-free during the Alabama sales tax holiday (as long as each piece didn’t exceed $100). Tax-exempt clothing items included jackets, jeans, shoes, belts, hats, and more; and yes, diapers were included.
What clothing was not tax-free? A few items were not considered clothing. Here are a few examples of items you still had to pay tax on:
- Athletic gear (shin guards, shoulder pads, roller skates, athletic shoes or gloves)
- Jewelry, watches, and hair accessories
- Handbags
- Cosmetics (including makeup)
- Sunglasses, eyeglasses, and contacts (prescription or nonprescription)
- Belt buckles
A few eligible electronics and other school supplies were tax-exempt during the tax-free weekend. However, non-educational video games and computer parts that were sold separately did not qualify.
What electronics were included? Eligible purchases included computers and printer supplies (printer paper, printer ink) as well as flash drives and tablets.
- Purchases could not exceed $750.
- Items produced solely for recreation did not qualify.
What school supplies were tax-exempt? Almost all school supplies were fair game during the sales tax holiday. To qualify, each item must have cost $50 or less.
- Art supplies (paints, clay, drawing pads, scissors, etc.)
- Book bags, lunch boxes, binders, notebooks and folders
- Calculators and writing tablets
- Many books with a sales price of $30 or less, per book
- Required textbooks on an official school book list, with a sales price of more than $30 and less than $50
Note: Although many school supplies were tax-free, some were not. Items used for “clean room apparel and equipment” were not tax-free, including cleaning supplies, paper towels, and hand sanitizer.
Tax-exempt online sales shipped to Alabama
Some online purchases qualified for Alabama’s sales tax holiday weekend. However, items must have been delivered to an Alabama address to qualify.
Online retailers like Amazon honor state sales tax holidays. However, the retailer explains on its website that "tax may still be calculated on items if they do not qualify, which can include items over a certain threshold, bundles, or specific items that are not included in the holiday."
Local sales tax in Alabama
While many Alabama counties participated in Alabama’s back-to-school holiday, some did not. This means you may have still needed to pay local sales taxes on eligible items.
Here are a few localities that did not participate in 2024. (This is not an exhaustive list of non-participating counties, and the list may be different for 2025.)
- Attalla
- Blountsville
- Camden
- Escambia County
- Greene County
- Jemison
- Slocomb
Not all localities notified the state regarding participating in the tax holiday in 2024. For more information, visit the official back-to-school Alabama holiday website. Be sure to check back next year for 2025 participants.
Related
-
Ford Stock Plunges on Earnings Miss: What To KnowFord stock is down big Thursday after the automaker fell short of earnings expectations for its second quarter. Here's what you need to know.
-
What IBM's New Free Cash Flow Forecast Means for InvestorsIBM stock is higher Thursday after the tech giant beat Q2 earnings expectations and raised its free cash flow guidance. Here's what you need to know.
-
IRS Ends Inherited IRA Confusion: Annual RMDs Required for ManyIRAs The agency has resolved a major point of uncertainty for inherited IRA beneficiaries.
-
$145 Million in ‘Senior Freeze’ Checks MailedProperty Tax What you need to know about New Jersey's property tax relief program for older adults.
-
TaxAct Class Action Settlement: Details to KnowTax Filing A multimillion-dollar settlement over alleged data privacy violations affects some TaxAct users.
-
An IRA Contribution Option You Might Not KnowIRAs Retirement savings might not have to take a back seat just because your partner doesn't earn income.
-
Project 2025 Tax Overhaul Blueprint: What You Need to KnowTax Proposals Some people wonder what Project 2025 is and what it suggests for taxes.
-
The Taxes That Come out of Your PaycheckPayroll Tax Your take-home pay is often less than expected due to several payroll tax withholdings you need to know.
-
Seven States Where Gas Tax Increased July 1Gas Taxes Since July has arrived, drivers in several states are facing a gas tax hike.
-
401(k) Withdrawal Penalty Rule Changes for 2024Tax Rules More people are taking early emergency withdrawals from retirement savings accounts. New rules might offer some relief.
