Compliance
Charge the reduced food tax on mixers and snacks
Tick SNAP-eligible food on a mixer or snack and it is taxed at Alabama's reduced state food rate (2%), with your local rates unchanged — alcohol, tobacco and hemp never qualify.
Steps
- Open Inventory and click the product's name.
- Under Regulated product, tick SNAP-eligible food (reduced food tax).
- Click Save changes.
- At the register the cart's tax includes the lower rate; the receipt shows a Food tax line beside Tax.
Good to know
- Only the STATE part of the rate is lower: Alabama's state food rate is 2% (from 1 September 2025) against 4% for everything else, so a store at 8.25% charges food 6.25%.
- Alcohol, tobacco, vapes, nicotine and hemp are never SNAP food, so the box is greyed out for them.
- The Sales tax report shows food sales and their tax on their own Food (reduced rate) line.
- A sale with a reduced-rate food item needs the connection: an offline register asks you to reconnect.