MONTGOMERY, AL — Alabama shoppers will have an opportunity to save on back-to-school purchases during the state’s 21st annual Back-to-School Sales Tax Holiday, which begins at 12:01 a.m. Friday, July 17, and continues through midnight Sunday, July 19.
During the three-day event, qualifying purchases of school supplies, computers, books, clothing and footwear will be exempt from Alabama’s 4% state sales or use tax. More than 300 cities and counties are also participating by waiving local sales taxes on eligible items, providing additional savings for shoppers.
The 2026 tax holiday marks the first year of expanded exemption limits approved by the Alabama Legislature following legislation passed during the 2025 session. The changes increased the maximum purchase amounts eligible for the tax exemption and tied future adjustments to the Consumer Price Index.
For 2026, qualifying exemptions include:
- Clothing and footwear priced at $156 or less per item (previously $100)
- Certain school supplies priced at $78 or less per item (previously $50)
- Computers and qualifying equipment costing $1,173 or less per single purchase (previously $750)
- Books priced at $47 or less, and textbooks priced at $78 or less (previously $30)
Rick Brown, president of the Alabama Retail Association, said the increased exemption limits provide greater value for families preparing for the new school year while also benefiting retailers throughout the state.
Local retailers also anticipate a busy shopping weekend. Mark Anderson, owner of Eagle Eye Outfitters, said the annual sales tax holiday has become an important event for both businesses and customers, adding that the higher exemption limits will give shoppers more opportunities to save.
Although the tax holiday is intended to help families with back-to-school shopping, anyone may take advantage of the exemptions. In addition to traditional school items, qualifying purchases include products such as diapers, printer ink, flash drives and art supplies.
Consumers can verify whether their city or county is participating and review the complete list of qualifying tax-exempt items through the Alabama Retail Association or the Alabama Department of Revenue before shopping.
