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  4. Taxability of Food and Meals

Alabama Sales Tax on Food and Meals Alabama: Sales Tax Handbook

Alabama:

Are Food and Meals subject to sales tax?

While Alabama's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of food and meals in Alabama, including catering and grocery food. To learn more, see a full list of taxable and tax-exempt items in Alabama.

Catering
TAXABLE
In the state of Alabama, a service charge incurred by a caterer is not considered to be taxable so long as the caterer prepares food which was not furnished by caterer. Any voluntary gratuities that are distributed to any employees are not considered to be taxable.
Grocery Food
TAXABLE
Sales of grocery food are subject to sales tax in Alabama.

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