Fact Sheet

Ending the state grocery tax and protecting schools

Alabama’s tax system is upside down, and the state sales tax on groceries is one reason why. Alabama remains one of only two states — the other is Mississippi — with no tax break on groceries. Food costs consume a larger portion of the household budget for low-income families than for those who are better off, so the grocery tax hits low-income people especially hard. The grocery tax is part of why Alabama’s overall tax system requires low- and middle-income people to pay twice as big a share of their incomes in state and local taxes as the riches households pay.