Rep. Danny Garrett , R-Trussville, introduced four bills aimed at further reducing the tax burden on Alabama families, emphasizing a continued commitment to conservative fiscal policy and financial relief for working residents.
“While I am proud that Alabama’s taxes are consistently among the lowest in the nation, there are still commonsense, conservative measures we can take to put more money back into the pockets of hardworking Alabamians,” Garrett said. “These bills will lower grocery costs, reduce state income taxes, and ensure everyday families see tangible savings.”
Collectively, these measures would save Alabamians approximately $314.6 million annually. HB386 proposes accelerating the state’s Grocery Tax Cut by an additional 1 percent, bringing the total grocery tax reduction to 2 percent since 2023, and delivering an estimated additional $123 million in annual savings. HB386 would take effect on September 1.
Another measure, HB389, seeks to provide relief by raising the income floor and adjusting thresholds for the optional standard deduction and dependent exemptions, which would lower state income taxes for many residents, saving about $23.8 million annually.
Additionally, HB388 reduces Alabama’s tax burden by nearly $45 million through changes in income taxation, including reducing obligations tied to federal taxes. HB387 would empower local governments to further reduce the grocery tax at the municipal level, adding flexibility for cities seeking to provide residents with additional relief.
House Speaker Nathaniel Ledbetter, R-Rainsville, applauded the legislature’s sustained focus on easing the tax burden, noting, “Since 2022, the Legislature has passed over a dozen tax cuts, saving Alabama families thousands of dollars. We continue to balance responsible financial stewardship with meaningful relief that directly benefits our citizens.”
Meanwhile, the push to fully eliminate Alabama’s grocery tax also received bipartisan backing. During a news conference Wednesday, Alabama House Democrats endorsed separate forthcoming legislation aimed at ending the state grocery tax entirely. Alabama Arise Executive Director Robyn Hyden praised this bipartisan momentum, highlighting that reducing the grocery tax not only benefits all Alabamians but also helps address the state’s regressive tax structure, which disproportionately impacts low- and middle-income families.
However, Hyden emphasized the importance of finding responsible revenue solutions to replace the grocery tax funds, particularly given the importance of maintaining strong support for education. She reiterated Alabama Arise’s longstanding position, suggesting that revenue could be replaced by capping or ending the state’s unique deduction for federal income tax payments—a benefit disproportionately utilized by higher-income households.
“Education Trust Fund revenues are strong enough for now to reduce the grocery tax without causing severe harm to school funding,” Hyden stated, “but history tells us we must remain cautious about protecting Alabama’s education system.”
Garrett’s tax proposals will now move through legislative committees, setting the stage for further debate and potential adjustments before final passage.
