The back to school Alabama sales tax holiday starts on the third Friday in July, which is this week. Starting on July 21, Alabama shoppers can 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 are exclusions to the sales tax holiday, and local sales taxes may still apply. Knowing all the rules before you shop can help you save the most money.
Alabama Sales Tax Holiday 2023
The 2023 back-to-school Alabama sales tax holiday starts at 12:01 AM on July 21 and ends at midnight on July 23. During this time, many types of school supplies (including computers and tablets) and clothing will be exempt from Alabama’s 4% sales tax rate. You could save even more if you shop 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 is not tax-free? Some items aren’t considered clothing for Alabama’s back-to-school tax holiday. Here are some examples of items you’ll still need 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 will be tax-exempt during the tax-free weekend. Non-educational video games and computer parts that are sold separately don't qualify.
What electronics are included? Eligible products include computers, iPads and tablets, keyboards, Apple pencils, speakers, printers and printer ink, and more.
- Purchases must not exceed $750.
- Items produced solely for recreation do not qualify.
What school supplies are tax-exempt? Almost all school supplies are fair game during the sales tax holiday. To qualify, each item must cost $50 or less.
- Art supplies (clay, drawing pads, paints, etc.) are tax-free.
- Bookbags, lunch boxes, binders, and notebooks are included.
- Pens, pencils, highlighters, and blackboard chalk are tax-exempt.
- Some books are tax-free (each book must cost $30 or less).
Alabama Tax-Free Weekend for Online Sales
Some online purchases qualify for Alabama’s tax-free weekend. You can purchase eligible items tax-free, whether picking up from the store or having the items delivered to your home. However, items must be delivered to an Alabama address to qualify.
Local Sales Tax in Alabama
Not all counties participate in Alabama’s back-to-school holiday. That means you may still need to pay local sales taxes on eligible items. The good news is that a large chunk of Alabama counties are exempting local taxes for this weekend’s tax holiday.
Here are a few localities that are not participating 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 have notified the state regarding participation in the tax holiday this year.
Shoppers can check with the Alabama Department of Revenue for more information about which counties will not charge local sales tax during this year’s tax-free weekend.
