Alabama’s Back-to-School Sales Tax Holiday returns with bigger savings

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July 7, 2026

Alabama families will have a chance to stretch their back-to-school budgets a little further this month because the state’s annual Back-to-School Sales Tax Holiday is almost here.

The tax holiday begins 12:01 a.m. Friday July 17, and runs through midnight Sunday, July 19. During the thee-day event, shoppers can purchase qualifying clothing, school supplies, computers and books without paying Alabama’s 4% state sales tax.

Some communities are offering even more savings, with over 300 cities and counties waving their local sales tax during the holiday.

This year’s sales tax comes with higher spending limits on eligible items after lawmakers approved changes during the 2025 legislative session. The legislation increased the dollar thresholds for tax-exempt purchases and tied future adjustments to inflation.

This month, shoppers can save on clothing and footwear priced at $156 or less per item, certain school supplies at $78 or less per item, computers or equipment at $1,173 or less, $47 or less for any book and $78 or less on textbooks.

“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 say the tax holiday has become one of the busiest shopping days 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 weekend is geared toward back-to-school shopping, anyone can take advantage of the tax break. Eligible purchases also include items like diapers, printer ink, flash drives and art supplies, making it an opportunity for shoppers beyond those preparing for the school year.