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NFIB: Alabama Sales Tax Holiday Could Be a Boon to Main Street Businesses

NFIB: Alabama Sales Tax Holiday Could Be a Boon to Main Street Businesses

July 14, 2025

This year's tax-free weekend is July 18-20

NFIB State Director Rosemary Elebash says the nation’s leading small business advocacy organization is urging Alabamians to take advantage of the state’s annual sales tax holiday this weekend by shopping at locally-owned small businesses.

The tax-free weekend begins in most counties and municipalities on Friday, July 18, and runs through Sunday, July 20. It applies to clothes, computers, school supplies, and books below a certain price, although some jurisdictions may still collect local sales taxes. Click here for details.

“This weekend is a great chance for families to stretch their dollars and support the businesses that keep our communities going,” Elebash said. “Small businesses are at the heart of Alabama’s economy. They create jobs, support local schools, and give back through donations and sponsorships.

“When you shop local, more of your money stays in Alabama,” she said. “On average, 67 cents of every dollar spent at a small business stays in the community. What’s more, another 50 cents is generated through things like employee wages and local supply purchases. That kind of ripple effect keeps our towns strong and keeps people working.”

This year’s tax holiday comes at a time when Alabama small businesses are working through a complex economic environment. According to the latest NFIB Small Business Economic Trends report, released today, the national Small Business Optimism Index ticked down slightly in June to 98.6, just above its 51-year average. Concerns about taxes, excess inventory, and uneven consumer demand remain top challenges.

“Shopping small this weekend is a good way to support the local economy,” Elebash said.

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