Grocery shoppers will immediately see lower prices thanks to special tax breaks – but there’s a catch

MILLIONS of Americans will soon be paying less for groceries — yet only one state is offering the savings.

Alabama will cut its state grocery sales tax by one percent on September 1.

Alabama residents will pay less for groceries starting in September


Alabama residents will pay less for groceries starting in SeptemberCredit: getty

The food tax will be 3 percent for a year and could drop another point if the state borrows enough for its Education Trust Fund (ETF).

If the ETF doesn’t grow 3.5 percent over the next year, the next cut will be put on hold until it’s achieved.

Alabama buyers should be aware of a few caveats.

Reduction applies to state sales tax only.

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Local food taxes are not affected by the change.

And only certain approved items are subject to curtailment.

Only items covered by the Supplemental Nutrition Assistant Program (SNAP) benefits receive the tax break.

This includes meat, poultry, fish, vegetables, bread, snacks, cereal, and seeds used to plant food.

Covered drinks must be non-alcoholic.

Hot and prepared meals are also not covered by the tax reduction.


As Alabama tries to bring relief to residents by lowering the cost of groceries, other states continue to send money to residents to help them cope with rising prices.

Many opt for tax refunds because of large government budget surpluses.

Alaska is still sending out $3,384 in Permanent Fund Dividend (PFD) payments to residents.

The payment is a resident’s share of the state’s annual oil and gas revenue in 2022.

$662 is considered an energy relief payment and is not taxable.

The rest is considered personal income.

And Minnesota is about to issue long-awaited tax refunds ranging from $260 to $1,300.

Single taxpayers with income of $75,000 or less are eligible for $260.

Applicants with dependents must receive multiple payments totaling $260.

Families of five or more can receive a maximum of $1,300 as long as their income is $150,000 or less.

Several other states will continue to pay aid payments into the fall.

And SSI recipients will receive two payments in September.

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Aila Slisco

Aila Slisco is a Dailynationtoday U.S. News Reporter based in London. His focus is on U.S. politics and the environment. He has covered climate change extensively, as well as healthcare and crime. Aila Slisco joined Dailynationtoday in 2023 from the Daily Express and previously worked for Chemist and Druggist and the Jewish Chronicle. He is a graduate of Cambridge University. Languages: English. You can get in touch with me by emailing:

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