The 2023 Alabama Sales Tax Holiday
Here's what you need to know about the 2023 Back-to-School Alabama sales tax holiday.
Update: The 2023 Alabama sales tax holiday has ended.
The back to school Alabama sales tax holiday starts on the third Friday in July, which was last week. Starting on July 21, Alabama shoppers could purchase many items tax-free in the state. That’s a big deal since Alabama has one of the highest sales taxes in the country.
But there were exclusions to the sales tax holiday, and local sales taxes may still apply.
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.
Alabama Sales Tax Holiday 2023
The 2023 back-to-school Alabama sales tax holiday ran from 12:01 AM on July 21 until midnight on July 23. During this time, many types of school supplies (including computers and tablets) and clothing were exempt from Alabama’s 4% sales tax rate. You could have saved even more if you shopped in a participating county (more on that below).
What’s Included in Alabama’s Tax-Free Weekend?
Clothing is tax-free during the Alabama sales tax holiday (as long as each piece doesn’t exceed $100). Tax-exempt clothing items include robes, jackets, belts, shoes, hats and more.
What clothing was not tax-free? Some items aren’t considered clothing for Alabama’s back-to-school tax holiday. Here are some examples of items shoppers had to pay tax on.
- Clothing for pets
- Jewelry and watches
- Belt buckles
- Handbags
- Roller skates
- Protective gear (mouth guards, shoulder pads, etc.)
Some electronics and other school supplies were tax-exempt during the tax-free weekend. Non-educational video games and computer parts that are sold separately did not qualify.
What electronics were included? Eligible products included computers, iPads and tablets, keyboards, Apple pencils, speakers, printers and printer ink, and more.
- Purchases must 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 (clay, drawing pads, paints, etc.) were tax-free.
- Bookbags, lunch boxes, binders, and notebooks were included.
- Pens, pencils, highlighters, and blackboard chalk were tax-exempt.
- Some books were tax-free (each book must have cost $30 or less).
Alabama Tax-Free Weekend for Online Sales
Some online purchases qualified for Alabama’s tax-free weekend. However, items must have been delivered to an Alabama address to qualify.
Local Sales Tax in Alabama
Not all counties participated in Alabama’s back-to-school holiday. That means you may have still needed to pay local sales taxes on eligible items. A large chunk of Alabama counties exempted local taxes for the weekend’s tax holiday.
Here are a few localities that did not participate in 2023.
- Banks
- Beaverton
- Billingsley
- Blue Springs
- Brookside
- Chilton County
- County Line
The above is not an exhaustive list of non-participating Alabama counties. Not all localities notified the state regarding participation in the tax holiday in 2023. The list of participating localities may change for the 2024 Alabama sales tax holiday.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.
-
How You Can Tackle Health Care Costs in Retirement
Doctor visits and medications are only part of the challenge of health care costs — there’s also long-term care planning. Here’s what you can do.
By Joel V. Russo, LUTCF Published
-
Considering Purchasing and Renting a Property in Italy?
Owning a property in Italy where you can stay when you visit and rent out when you’re not there requires very careful planning.
By Davide Migali Published
-
Three 'Hidden Costs' of Health Savings Accounts (HSAs)
Health Savings HSAs offer valuable tax benefits, but can 'hidden costs' erode those advantages?
By Kelley R. Taylor Last updated
-
How the Biden Marijuana Shift Could Impact Taxes
Tax Rules A pending Biden administration marijuana rule change could help some businesses lower their taxes.
By Kelley R. Taylor Last updated
-
'Instant' EV Tax Credits Are a Hit: $580M Paid This Year
EV Credits Claiming federal electric vehicle tax credits at the point of sale is a new and popular option in 2024.
By Kelley R. Taylor Last updated
-
Retirees Face Significant Tax Bills Due to Fraud
Fraud A new report sheds light on how older adult scam victims end up with big tax bills and lost retirement savings.
By Kelley R. Taylor Last updated
-
Tax Day: Is the Post Office Open Late?
Tax Filing Tax Day means some people need to mail their federal income tax returns.
By Kelley R. Taylor Published
-
High Earners: Beware of These Illegal Schemes to Lower Taxes
Tax Schemes The IRS says high-income filers are targets for several illegal tax schemes.
By Katelyn Washington Last updated
-
Mailing Your Tax Return This Year? What to Know Before You Do
Tax Filing There are plenty of reasons not to mail your tax return this year, but here’s what you should know if you are.
By Katelyn Washington Last updated
-
IRS Warning: Beware of Smishing and 'Helper' Tax Scams
Scams Tax season is a time to look out for email and text message scams.
By Kelley R. Taylor Last updated