MONTGOMERY, Ala. – With the first day of school about a month away for many districts, Alabama’s 21st Annual Back-to-School Sales Tax Holiday is here.
Starting Friday, Alabamians can stock up on clothing, school supplies, books, computers and educational software without paying the state’s 4% sales tax. Though it is not required, some counties and municipalities elect to remove their local taxes as well. View a list of the more than 300 participating localities here.
Gov. Kay Ivey encouraged Alabamians to take advantage of the holiday to stock up for the coming school year.
“Quality education is essential to continuing the historic momentum that Alabama is experiencing,” Ivey said. “Successful students need to be properly equipped for the classroom, and this tax-free weekend makes school supplies more accessible to families across our state. An investment in our students is an investment in the future of Alabama.”
This year’s holiday also marks the rollout of higher dollar limits for eligible items. The 56% uptick in item price for most categories comes after the Legislature passed a bill in 2025 to link dollar limits to the Consumer Price Index.
“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, which advocated for the increase in 2025. “These changes help consumers purchase the items they need for the new school year while also supporting Alabama retailers in their local communities.”
Some of the higher limits include:
- Clothing and footwear priced at $156 or less, previously $100
- Certain school supplies priced at $78 or less, previously $50
- Computers or technology equipment priced at $1,173 or less, previously $750
- Books or textbooks priced at $47 or less, previously $30
Other eligible items include school uniforms, rulers, pens and pencils, laptops, printers, arts supplies, shoes, diapers and paper. View a full list of eligible items here.
Some local businesses say the holiday is the busiest shopping weekend of the year.
“The sales tax holiday has become very important to us over the years,” said Mark Anderson, owner of Eagle Eye Outfitters in Dothan. “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.”
National Federation of Independent Business State Director Rosemary Elebash said the holiday is a way for Alabamians to help out local businesses while saving money.
“When families choose to shop at locally owned businesses, they’re doing more than preparing for the school year,” Elebash said. “They’re supporting local jobs, strengthening their communities, and helping Alabama’s small businesses succeed.”
The holiday allows families to purchase items tax-free, but like all tax credits or suspensions, it leads to less money in the state’s coffers, specifically the Education Trust Fund that disburses money for public school across the state. State sales tax was already down year over year in seven of the first eight months of the fiscal year, Alabama Daily News reported last month.
The Back-to-School Sales Tax Holiday lasts from Friday, July 17, at 12:01 a.m. to Sunday, July 19 at midnight.