Alabama shoppers have something to look forward to this weekend: Back-to-school savings. Savvy shoppers can purchase school supplies, computers, and clothing free from the state’s sales tax. This is a big deal since Alabama has one of the highest sales tax rates in the U.S.
And this year, the sales tax holiday is bigger than ever.
State lawmakers enacted legislation to raise the qualifying exemption amounts on select clothing, school supplies, computers, books, and more. This means that you can spend more per item without paying state sales tax.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
“The expanded exemption limits make this year’s tax holiday even more valuable for Alabama families,” Rick Brown, president of the Alabama Retail Association, stated in a release. “These changes help consumers purchase the items they need for the new school year while also supporting Alabama retailers in their local communities.”
Here’s what you need to know about the Alabama tax-free weekend to make the most of your shopping trip.
When is the sales tax holiday in Alabama?
The annual back-to-school Alabama sales tax holiday runs from 12:01 AM on Friday, July 17, until midnight on Sunday, July 19.
During this time, many types of school supplies (including computers and tablets) and clothing are exempt from Alabama’s usual 4% sales tax rate. This saves shoppers $4 for every $100 spent.
What’s included (and the price limits)
To qualify for the Alabama sales tax exemption, your purchases must fall under specific categories (like clothing, school supplies, books, electronics, etc.) and stay beneath certain price thresholds.
But this year, each category has seen an inflation-adjusted pay bump due to a newly enacted state law. These amounts are indexed for inflation and will increase every five years.
For instance, qualifying clothing is tax-free during the Alabama sales tax holiday as long as each piece does not exceed $156 (up from $100). Computers and software have a newly raised price threshold of $1,173 per single purchase (up from $750).
Here’s a quick-reference table of other qualifying items and their increased price limits to help plan your shopping list:
|
Category |
Price limit |
What’s included (examples) |
|---|---|---|
|
Clothing & Footwear |
$156 (or less) per item |
Jeans, shirts, shoes, jackets, belts |
|
Computers & Tech |
$1,173 (or less) per purchase |
Laptops, printers, ink, software |
|
School Supplies |
$78 (or less) per item |
Backpacks, calculators, writing tablets, notebooks, art supplies |
|
Books |
$47 (or less) per item |
Any book with a sales price of $47 or less |
|
Textbooks |
$78 (or less) per item |
Textbooks required by an official schoolbook list |
Note: For a complete list of what’s included in the 2026 Alabama sales tax holiday, check out the state’s Division of Revenue website.
Here’s what’s not included
Not all items in the above categories are fair game. Here are a few examples of items you still have to pay tax on during the Alabama tax-free weekend:
- Athletic gear (shin guards, shoulder pads, roller skates, athletic shoes, or sports gloves).
- Jewelry, watches, and hair accessories.
- Handbags and briefcases.
- Cosmetics (including makeup).
- Sunglasses, eyeglasses, and contacts (prescription or nonprescription).
- Belt buckles, wallets, and umbrellas.
Additionally, non-educational video games (those solely for recreation) and computer parts that were sold separately do not qualify.
Items used for “clean room apparel and equipment” are also not tax-free, including cleaning supplies, paper towels, and hand sanitizer.
Fortunately, you don’t exactly have to brave the store crowds to take part advantage of Alabama’s tax-free weekend.
- Online purchases. Eligible items purchased online qualify for the tax exemption if they’re ordered and paid for during the holiday window, even if the actual delivery occurs after the weekend ends.
- Layaway payments. To qualify for the tax exemption, you must either complete a new layaway purchase (including final payment and delivery) before the holiday window closes, or make the final payment on an existing layaway item during the window.
The local tax catch
While Alabama waives its 4% state sales tax during the holiday, local city and county sales taxes may still apply. Alabama municipalities are not required to participate; they must vote annually to opt in. Thus, be sure to check the Alabama Department of Revenue’s list of participating municipalities to see whether your city participates.
Happy shopping!