Alabama Enacts Tax Exemption for Diapers & Baby Essentials Starting September 1, 2025
Relief for Families
As of September 1, 2025, Alabama families will begin saving money at the checkout counter thanks to a new law that eliminates the state sales tax on a wide range of essential baby and maternity products. The exemption covers diapers, baby formula, wipes, bottles, breast pumps, maternity clothing, and menstrual hygiene products.
This marks the first time Alabama has provided such a tax break, and it is designed to ease the financial burden on households with children and caregivers.
What’s Covered
The new law exempts the state’s 4% sales tax on:
- Baby formula and bottles
- Diapers (including adult diapers)
- Baby wipes and breast pumps
- Maternity clothing
- Menstrual hygiene products such as pads, tampons, and menstrual cups
The exemption applies only to the state sales tax. Local county and city sales taxes will still be charged unless local governments pass their own resolutions to join in the exemption.
Legislative Background
The measure passed with unanimous support in the Alabama Legislature earlier this year and was signed into law by Governor Kay Ivey. Lawmakers stressed the importance of removing financial barriers on products that are not optional, but rather daily necessities for families, parents, and women.
Fiscal Impact
The exemption is projected to reduce state revenues by roughly $13 million per year. State officials believe the cost is outweighed by the relief it provides to families struggling with rising costs of childcare, groceries, and basic necessities.
The change comes alongside a separate reduction in the state’s grocery tax, which is being lowered from 3% to 2% on the same date, creating a broader package of consumer relief.
Why It Matters
For many Alabama households, diapers, formula, and menstrual products represent a significant monthly expense. By removing the state tax on these items, the new law helps families stretch their budgets further. Advocates say it represents a step toward recognizing the financial realities of caregiving and supporting parents and individuals who rely on these products.
Next Steps for Consumers
Local governments may choose to adopt the exemption as well, which would create additional savings in some areas.
Shoppers should see the tax savings automatically applied at the register beginning September 1.
Retailers have been instructed to update checkout systems to ensure the exemption is properly applied.
