Orange Beach, Ala. — (OBA) —  Alabama shoppers are getting a break at the grocery store starting this weekend. A new state law suspends the state's share of the grocery tax for two months. Governor Kay Ivey signed the bill into law in April after it passed the state legislature. The measure is intended to ease everyday costs for working families across the state.

The grocery tax holiday began on Friday, May 1, 2026, and runs through the end of June. Ivey announced on Friday that Alabamians should take advantage of the savings. The relief applies only to the state's share of the grocery tax, not to local taxes.

House Bill 527 is the law that makes the holiday possible. Rep. James Lomax and Sen. Arthur Orr carried the bill through the state legislature. Their work, along with Ivey's support, helped advance the measure and secure its signature.

Ivey said she was glad the state could offer financial relief to residents. "When we can cut taxes in Alabama and provide relief to the hardworking people of this state, I am all for it," she said.

The governor also highlighted the state's broader effort on grocery taxes in recent years. "With the Legislature, we have worked to reduce the state's share of the grocery tax over the last few years," Ivey said.

"This two-month holiday on the state grocery tax will provide direct relief," Ivey added. "I am grateful to Rep. James Lomax and Sen. Arthur Orr for sponsoring the legislation to make that possible."

House Bill 527 also includes a second benefit for workers. The law provides an income tax deduction for qualified overtime compensation, allowing workers to deduct up to $1,000 in overtime pay from their state income taxes.

Together, the grocery tax holiday and the overtime deduction are designed to help working Alabamians keep more of their money. State leaders say the goal is straightforward — give people real, direct relief.