Alabama’s Back-to-School Sales Tax Holiday Returns This Weekend
Tax-Free Savings on School Supplies, Clothing, and Electronics from July 18–20
Alabama families will have the chance to save on essential school-related items this weekend during the state’s annual Back-to-School Sales Tax Holiday, running from 12:01 a.m. Friday, July 18, through midnight Sunday, July 20.
Authorized under §40-23-210 to §40-23-213, Code of Alabama 1975, the holiday offers relief from the 4% state sales tax on a wide variety of items, including school supplies, clothing, books, and electronics. This initiative, first enacted in 2006, aims to help families prepare for the upcoming school year while encouraging shopping at local businesses across the state.
While participation in the holiday is not mandatory for municipalities, many cities and counties do choose to waive their local sales taxes during this period. A complete list of participating localities is available through the Alabama Department of Revenue at:
https://www.revenue.alabama.gov/sales-use/alabama-back-to-school-sales-tax-holiday-participating-localities
Eligible Tax-Free Items
School Supplies
The following items are exempt from state sales tax with no price limit per item:
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Binders
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Blackboard chalk
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Book bags
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Books ($30 or less, per book)
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Calculators
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Cellophane tape
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Compasses
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Composition books
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Crayons
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Erasers
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Expandable, pocket, plastic, and manila folders
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Glue, paste, paste sticks
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Highlighters
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Index cards and index card boxes
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Legal pads
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Lunch boxes
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Markers
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Notebooks
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Paper (colored, construction, copy, graph, loose-leaf ruled notebook, manila, tracing, poster board)
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Pencil boxes and school supply boxes
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Pencil sharpeners
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Pencils and pens
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Protractors
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Rulers
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Scissors
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Writing tablets
Electronics & Computer Equipment (up to $750)
Includes single purchases up to $750 of:
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Computers
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Computer printers
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Printer paper and ink
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Handheld electronic schedulers (excluding cellular phones)
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Personal digital assistants (excluding cellular phones)
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Computer storage media (disks, flash drives, compact discs)
Clothing (priced at $100 or less, per item)
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Belts
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Boots
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Caps and hats
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Coats and jackets
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Diapers (children’s and adult)
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Dresses
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Gloves
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Gym suits
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Hosiery
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Jeans
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Neckties
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Pajamas and robes
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Pants
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Raincoats
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Sandals and shoes (including sneakers)
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Scarves
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School uniforms
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Shirts
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Socks
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Underwear
State Leaders Encourage Participation
Governor Kay Ivey emphasized the importance of supporting education and Alabama families:
“A new school year brings new opportunities, and we want every Alabama student to step into the classroom ready to learn and succeed. This tax holiday is one more way we’re supporting our Alabama families and reinforcing the importance of education across our state.”
Local businesses are also expected to benefit significantly. Rosemary Elebash, State Director for the National Federation of Independent Business, encouraged residents to shop locally.
“When you shop local, more of your money stays in Alabama. On average, 67 cents of every dollar spent at a small business stays in the community.”
The Alabama Retail Association echoed this sentiment, noting that the holiday has become a tradition for many families.
“The sales tax holiday has become very important to us over the years,” said Michael Gee, chairman of the association. “Parents have become accustomed to the sales tax holiday, and they look forward to it every year.”
Plan Ahead
Before heading to the store, shoppers are encouraged to review the complete list of tax-exempt items and confirm whether their local community is participating in the holiday. A full list of qualifying items and participating local governments is available on the Alabama Department of Revenue’s website.
With the school year just around the corner, Alabama’s Back-to-School Sales Tax Holiday offers a timely opportunity for families to save while preparing students for academic success.
