MONTGOMERY, Ala. — Alabama families can save money on back-to-school essentials during the state’s 21st annual Back-to-School Sales Tax Holiday, which begins at 12:01 a.m. on Friday, July 17, and runs through midnight on Sunday, July 19, 2026.
During this three-day tax holiday, shoppers can purchase certain school supplies, computers, books and clothing free of Alabama’s 4% state sales or use tax. In addition, more than 300 cities and counties across Alabama are waiving their local sales taxes, giving families even greater savings. To find out if your community is participating, check the 2026 Participating Cities and Counties list.
This year’s holiday includes expanded exemption limits, allowing consumers to save more than ever before. During the 2025 legislative session, the Alabama Retail Association advocated for legislation to modernize Alabama’s sales tax holidays by increasing the dollar thresholds and indexing them to the Consumer Price Index. That legislation was approved by the Legislature, resulting in higher exemption limits for 2026.
See full list of qualifying items here.
“The expanded exemption limits make this year’s tax holiday even more valuable for Alabama families,” said Rick Brown, president of the Alabama Retail Association. “These changes help consumers purchase the items they need for the new school year while also supporting Alabama retailers in their local communities.”
Local retailers echo that sentiment, saying the weekend has become one of the busiest shopping events of the year.
“The sales tax holiday has become very important to us over the years,” said Mark Anderson, owner of Eagle Eye Outfitters. “Families plan for it, and with the increased exemption limits, they’ll have even more opportunities to save on the clothing, shoes and school supplies they need. It’s a win for shoppers and for retailers across Alabama.”
Although the sales tax holiday is designed to help families prepare for the school year, any consumer can take advantage of the savings. A wide range of qualifying items, including diapers, printer ink, flash drives and art supplies, are exempt during the holiday, making it a great opportunity for everyone to save.
