Alabama families always love a tax cut. Starting today, May 1, a two-month grocery tax holiday is now in effect.

Governor Kay Ivey is highlighted the measure today as part of a years-long effort from she and state lawmakers to reduce costs for working families.

In 2023, state lawmakers dropped the state grocery tax from 4% to 3%, down to 3% percent in 2025 — and now in 2026, households statewide will pay zero state sales use tax on any groceries. 

North Alabama’s own State Rep. James Lomax (R-Huntsville) and State Sen. Arthur Orr (R-Decatur) were the two state legislators who carried, defended, and passed this year’s bill to reduce the grocery tax.

After Governor Ivey signed their HB527 into law, starting today, all through June, no Alabamian will pay a cent of state sales tax on groceries. 

“When we can cut taxes in Alabama and provide some relief to the hardworking people of this state, I am all for it,” Governor Ivey said today.

“With the Legislature, we have worked to pull back the state’s portion of the grocery tax over the last few years. This two-month holiday on the state grocery tax will provide direct relief, and I am grateful to Rep. James Lomax and Sen. Arthur Orr for sponsoring the legislation to make that possible.”

Governor Kay Ivey on Friday also marked the start of the tax holiday in a post on X, writing:

🚨: The state grocery tax holiday for May and June goes into effect TODAY! 🛒

When we can cut taxes and provide some relief to the hardworking people of this state, I am all for it.

I’m grateful to Rep. James Lomax and Sen. Arthur Orr for sponsoring the legislation. #alpolitics pic.twitter.com/s4DdvJnijv

— Governor Kay Ivey (@GovernorKayIvey) May 1, 2026

HB527 also includes an income tax deduction on qualified overtime pay, allowing taxpayers to deduct up to $1,000 annually from their state taxable income beginning in 2026.

The provision is set to expire after 2028 unless extended.