Alabama Sales Tax Holiday 2026 With Higher Tax-Free Limits
Thanks to a new state law, Alabama families could save more during the back-to-school sales tax-free weekend.
Update: The back-to-school Alabama sales tax holiday has ended.
Alabama shoppers had something to look forward to: Back-to-school savings. Savvy shoppers could purchase school supplies, computers, and clothing free from the state’s sales tax. This was a big deal, since Alabama has one of the highest sales tax rates in the U.S.
And in 2026, the sales tax holiday was bigger than ever.
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State lawmakers enacted legislation to raise the qualifying exemption amounts on select clothing, school supplies, computers, books, and more. This meant that you could spend more per item without paying state sales tax.
"The expanded exemption limits make this year’s tax holiday even more valuable for Alabama families," Rick Brown, president of the Alabama Retail Association, stated in a release. "These changes help consumers purchase the items they need for the new school year while also supporting Alabama retailers in their local communities."
Here’s what you needed to know about the Alabama tax-free weekend to make the most of your shopping trip.
When was the sales tax holiday in Alabama?
The annual back-to-school Alabama sales tax holiday ran from 12:01 am on Friday, July 17, until midnight on Sunday, July 19.
During this time, many types of school supplies (including computers and tablets) and clothing were exempt from Alabama’s usual 4% sales tax rate. This saved shoppers $4 for every $100 spent.
What was included (and the price limits)
To qualify for the Alabama sales tax exemption, your purchases must have been under specific categories (like clothing, school supplies, books, electronics, etc.) and stayed beneath certain price thresholds.
In 2026, each category saw an inflation-adjusted pay bump due to a newly enacted state law. These amounts are indexed for inflation and are set to increase every five years.
For instance, qualifying clothing was tax-free during the Alabama sales tax holiday as long as each piece did not exceed $156 (up from $100). Computers and software had a newly raised price threshold of $1,173 per single purchase (up from $750).
Here's a quick-reference table of other qualifying items and their increased price limits during the tax holiday.
Category |
Price limit |
What was included (examples) |
|---|---|---|
Clothing & Footwear |
$156 (or less) per item |
Jeans, shirts, shoes, jackets, belts |
Computers & Tech |
$1,173 (or less) per purchase |
Laptops, printers, ink, software |
School Supplies |
$78 (or less) per item |
Backpacks, calculators, writing tablets, notebooks, art supplies |
Books |
$47 (or less) per item |
Any book with a sales price of $47 or less |
Textbooks |
$78 (or less) per item |
Textbooks required by an official schoolbook list |
Note: For a complete list of what was included in the 2026 Alabama sales tax holiday, check out the state's Division of Revenue website (PDF).
Here's what wasn't included
Not all items in the above categories were fair game. Here are a few examples of items you still had to pay tax on during the Alabama tax-free weekend:
- Athletic gear (shin guards, shoulder pads, roller skates, athletic shoes or sports gloves).
- Jewelry, watches and hair accessories.
- Handbags and briefcases.
- Cosmetics (including makeup).
- Sunglasses, eyeglasses and contacts (prescription or nonprescription).
- Belt buckles, wallets and umbrellas.
Additionally, non-educational video games (those solely for recreation) and computer parts that were sold separately did not qualify.
Items used for "clean room apparel and equipment" were also not tax-free, including cleaning supplies, paper towels, and hand sanitizer.
Rules on online shopping & layaway
Fortunately, you didn't exactly have to brave the store crowds to take advantage of Alabama's tax-free weekend.
- Online purchases. Eligible items purchased online qualified for the tax exemption if they were ordered and paid for during the holiday window, even if the actual delivery occurred after the weekend ended.
- Layaway payments. To qualify for the tax exemption, you must have either completed a new layaway purchase (including final payment and delivery) before the holiday window closed or made the final payment on an existing layaway item during the window.
The local tax catch
While Alabama waived its 4% state sales tax during the holiday, local city and county sales taxes may still have applied. That's because Alabama municipalities weren't required to participate; they must have voted to opt in. Shoppers had to check the Alabama Department of Revenue's list of participating municipalities to see whether their city participated.
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