Everything you need to know about the Alabama Sales Tax holiday:
When is Alabama's 2025 sales tax holiday?
Alabama's 2025 sales tax holiday kicks off Friday, July 18, through Sunday, July 20.
What items qualify for a tax break?
During the weekend, families can buy clothing priced at $100 or less, school supplies like pencils and binders, books under $30, and computers or software costing up to $750, all without paying the state's 4% sales tax.
However, the exemption doesn't cover items like jewelry, protective equipment, sports equipment or video games.
When using discounts or coupons during the sales tax weekend, the price you pay after discounts or coupons is what matters for getting the tax break. For example, if an item is usually $20 but you use a $5 coupon, the tax break applies only if the new price is under the limit.
Also, if you buy both tax-free and regular items and use a discount on the whole purchase, the discount is divided fairly between those items to determine which parts are tax-free.
Long story short: you pay tax on the part that does not qualify for the holiday.
What if I have to do a return or exchange?
Online sales qualify for the tax exemption if payment and delivery occur during the tax holiday. According to Alabama law, a sale is not complete until the item is delivered and rests in the state.
After the tax holiday, customers have 60 days to show proof they paid sales tax on returned items before getting a tax refund. This does not change the seller's usual return policy. If you return the item after the holiday and buy something new instead, you will owe sales tax on the latest purchase.
For exchanges, no extra tax is due if you swap a tax-free item for a different size or color during the tax holiday.
Everything you need to know about the Alabama Sales Tax holiday:
When is Alabama's 2025 sales tax holiday?
Alabama's 2025 sales tax holiday kicks off Friday, July 18, through Sunday, July 20.
What items qualify for a tax break?
During the weekend, families can buy clothing priced at $100 or less, school supplies like pencils and binders, books under $30, and computers or software costing up to $750, all without paying the state's 4% sales tax.
However, the exemption doesn't cover items like jewelry, protective equipment, sports equipment or video games.
When using discounts or coupons during the sales tax weekend, the price you pay after discounts or coupons is what matters for getting the tax break. For example, if an item is usually $20 but you use a $5 coupon, the tax break applies only if the new price is under the limit.
Also, if you buy both tax-free and regular items and use a discount on the whole purchase, the discount is divided fairly between those items to determine which parts are tax-free.
Long story short: you pay tax on the part that does not qualify for the holiday.
What if I have to do a return or exchange?
Online sales qualify for the tax exemption if payment and delivery occur during the tax holiday. According to Alabama law, a sale is not complete until the item is delivered and rests in the state.
After the tax holiday, customers have 60 days to show proof they paid sales tax on returned items before getting a tax refund. This does not change the seller's usual return policy. If you return the item after the holiday and buy something new instead, you will owe sales tax on the latest purchase.
For exchanges, no extra tax is due if you swap a tax-free item for a different size or color during the tax holiday.
Everything you need to know about the Alabama Sales Tax holiday:
When is Alabama's 2025 sales tax holiday?
Alabama's 2025 sales tax holiday kicks off Friday, July 18, through Sunday, July 20.
What items qualify for a tax break?
During the weekend, families can buy clothing priced at $100 or less, school supplies like pencils and binders, books under $30, and computers or software costing up to $750, all without paying the state's 4% sales tax.
However, the exemption doesn't cover items like jewelry, protective equipment, sports equipment or video games.
When using discounts or coupons during the sales tax weekend, the price you pay after discounts or coupons is what matters for getting the tax break. For example, if an item is usually $20 but you use a $5 coupon, the tax break applies only if the new price is under the limit.
Also, if you buy both tax-free and regular items and use a discount on the whole purchase, the discount is divided fairly between those items to determine which parts are tax-free.
Long story short: you pay tax on the part that does not qualify for the holiday.
What if I have to do a return or exchange?
Online sales qualify for the tax exemption if payment and delivery occur during the tax holiday. According to Alabama law, a sale is not complete until the item is delivered and rests in the state.
After the tax holiday, customers have 60 days to show proof they paid sales tax on returned items before getting a tax refund. This does not change the seller's usual return policy. If you return the item after the holiday and buy something new instead, you will owe sales tax on the latest purchase.
For exchanges, no extra tax is due if you swap a tax-free item for a different size or color during the tax holiday.
