TaxByte: Alabama Enacts Sales Tax Exemption on Baby, Maternity, and Menstrual Products | TaxValet

Starting September 1, 2025, Alabama will exempt certain baby supplies, maternity clothing, and menstrual hygiene products from the state portion of sales and use tax through August 31, 2028. Local taxes may still apply unless opted out by local governments.

Relief Ahead for Alabama Families: What This Means for Parents and Women

Families across Alabama, particularly those with infants, expecting mothers, and menstruating individuals, will soon see cost savings at the register. By removing the state sales tax on essential baby and hygiene products, Alabama is taking a significant step to reduce everyday expenses tied to health and caregiving.

However, it's important to note that this exemption only applies to the state portion of the sales tax—city and county taxes may still be charged unless the local government chooses to opt in.

What’s Changing in Alabama’s Sales Tax Law for Baby and Hygiene Essentials

Key Dates:

• Effective Date: September 1, 2025
  
  
• End Date: August 31, 2028
  
  

What's Included in the State Tax Exemption:

Alabama’s HB152 outlines a broad list of qualifying items, including:

• Baby products:
  
  
  • Baby formula
    
    
  • Baby bottles
    
    
  • Baby wipes
    
    
  • Diapers
    
    
    
• Breastfeeding supplies:
  
  
  • Breast pumps
    
    
  • Breast milk storage bags
    
    
  • Nursing pads and bras
    
    
    
• Maternity clothing designed for pregnancy and postpartum
  
  
  
• Menstrual hygiene products, such as:
  
  
  • Tampons
    
    
  • Pads and panty liners
    
    
  • Menstrual cups and sponges (both disposable and reusable)
    
    

Local Tax Still Applies—Unless Waived:

The exemption does not automatically apply to county or municipal sales or use taxes. For the local portion to be exempted, a resolution or ordinance must be passed by the local government.

What Businesses Need to Do to Prepare for the New Tax Exemption

Retailers and tax professionals with clients in Alabama should prepare ahead of the September 1, 2025 effective date by:

• Reviewing product catalogs to identify which items fall under the exemption definitions.
  
  
• Updating point-of-sale systems to ensure state tax is not charged on qualifying items starting on the effective date.
  
  
• Checking with local jurisdictions to see whether municipal or county taxes will still apply.
  
  
• Training staff to understand which items are exempt and which are not.
  
  
• Consulting with your tax advisor or compliance partner to ensure seamless implementation.

How TaxValet Simplifies Compliance with Changing Tax Laws

At TaxValet, we stay ahead of the curve so you don’t have to. If you’re a TaxValet client, our team will handle the research, configuration, and ongoing monitoring to ensure your sales tax setup remains fully compliant—including applying new exemptions like Alabama’s latest tax relief. We proactively communicate changes and implement updates so you can focus on running your business.

Not yet a client? Schedule your free consultation today to learn how we can take sales tax off your plate.