Alabama families can save money on back-to-school essentials during the state's 21st-annual Back-to-School Sales Tax Holiday, which begins at 12:01 a.m. on Friday, July 17, and runs through midnight on Sunday, July 19.

During this three-day tax holiday, shoppers can purchase certain school supplies, computers, books and clothing free of Alabama's 4% state sales or use tax. In addition, more than 300 cities and counties across Alabama are waiving their local sales taxes, giving families even greater savings.

This year's holiday includes expanded exemption limits, allowing consumers to save more than ever before. During the 2025 legislative session, the Alabama Retail Association advocated for legislation to modernize Alabama's sales tax holidays by increasing the dollar thresholds and indexing them to the Consumer Price Index. That legislation was approved by the Legislature, resulting in higher exemption limits for 2026.

"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 echo that sentiment, saying the weekend has become one of the busiest shopping events 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 sales tax holiday is designed to help families prepare for the school year, any consumer can take advantage of the savings. A wide range of qualifying items, including diapers, printer ink, flash drives and art supplies, are exempt during the holiday, making it a great opportunity for everyone to save.

CLOTHING

Eligible — $156 or less, per article of clothing

Includes all human wearing apparel suitable for general use. This is not an all-inclusive list.

• Belts
• Boots
• Caps
• Coats
• Diapers
• Dresses
• Gloves
• Gym Suits
• Hats
• Hosiery
• Jackets
• Jeans
• Neckties
• Pajamas
• Pants
• Raincoats
• Robes
• Sandals
• Scarves
• School uniforms
• Shirts
• Shoes
• Shorts
• Socks
• Sneakers
• Underwear

Noneligible — Clothing accessories, protective equipment, and sports or recreational equipment

Belt buckles (sold separately); Briefcases; Cosmetics; Costume masks (sold separately); Hair Notions (barrettes, hair bows, etc.); Handbags; Handkerchiefs; Jewelry; Patches and emblems (sold separately); Sewing equipment and supplies (pins, patterns, scissors, tape measures, etc.); Sewing materials (thread, fabric, buttons, zippers, etc.); Sunglasses, eyeglasses, contacts (prescription or nonprescription); Umbrellas; Wallets; Watches; Breathing masks; Clean room apparel and equipment; Ear and hearing protectors; Face shields; Hard hats; Helmets; Paint or dust respirators; Protective gloves; Safety glasses and goggles; Safety belts; Tool belts; Welder gloves and masks; Ballet or tap shoes; Band instruments; Cleated or spiked athletic shoes; Gloves (baseball, bowling, boxing, hockey, golf, etc.); Goggles; Hand and elbow guards; Life preserves and vests; Mouth guards; Roller and ice skates; Shin guards; Shoulder pads; Ski boots; Waders; Wetsuits and fins; Wigs and hair pieces

COMPUTERS, COMPUTER SOFTWARE, AND SCHOOL COMPUTER SUPPLIES

Eligible — A single purchase with a sales price of $1.173 or less

• Computers – For a purchase to be eligible, a computer may include a laptop, desktop or tower computer system that consists of a central processing unit (CPU), and devices such as a display monitor, keyboard, mouse and speakers sold as a computer package. Computer parts and devices not sold as part of a package with the CPU will not qualify for the exemption.
• Computer software
• School computer supplies – An item commonly used by a student in a course of study in which a computer is used. All-inclusive list includes:
  • Computer storage media; diskettes, compact disks
  • Handheld electronic schedulers, except devices that are cellular phones
  • Personal digital assistants, except devices that are cellular phones
  • Computer printers
  • Printer supplies for computers (printer paper, printer ink)

Noneligible — Furniture; Any systems, devices, software, peripherals designed or intended primarily for recreational use; Video games of a non-educational nature.

TEXTBOOKS

Eligible — Sales price of $47 or less, per book (noncommercial purchases)

• Books – The term book is defined as a set of printed sheets bound together and published in a volume with an ISBN number.

Noneligible — Magazines; Newspapers and periodicals; Any other document printed or offered for sale in a non-bound form.

SCHOOL SUPPLIES, SCHOOL ART SUPPLIES, AND SCHOOL INSTRUCTIONAL MATERIAL

Eligible — Sales price of $78 or less, per item (noncommercial purchases)

This is an all-inclusive list.

• School supplies
  • Binders
  • Blackboard chalk
  • Book bags
  • Calculators
  • Cellophane tape
  • Compasses
  • Composition books
  • Crayons
  • Erasers
  • Folders (expandable, pocket, plastic, and manila)
  • Glue, paste and paste sticks
  • Highlighters
  • Index cards
  • Index card boxes
  • Legal pads
  • Lunch boxes
  • Markers
  • Notebooks
  • Protractors
  • Paper (colored, construction, copy, graph, loose leaf ruled notebook, manila and tracing papers and poster board)
  • Pencil boxes and other school supply boxes
  • Pencil sharpeners
  • Pencils
  • Pens
  • Rulers
  • Scissors
  • Writing tablets
• School art supplies (This is an all-inclusive list.)
  • Clay and glazes
  • Paints (acrylic, tempora, oil and watercolors)
  • Paintbrushes for artwork
  • Sketch and drawing pads
• School instructional material (Written material commonly use in a course of study as a reference and to learn the subject being taught). This is an all-inclusive list.
  
  • Reference maps and globes

• • Required textbooks on an official schoolbook list with a sales price of more than $47 and less than $78