Sales Tax on Groceries by State
In most US states, grocery items like bread and vegetables are exempt from sales tax. Find out now if you should charge sales tax on groceries.
Learn more- Zamp Learnings
- Why Are Groceries Tax Exempt?
- How Grocery Sales Tax Works
- Grocery Sales Tax Example
- Are All Groceries Tax-Exempt?
- Free Download: Sales Tax Guide for E-Commerce
- Sales Tax by State: Are Groceries Taxed?
- States That Tax Groceries
- State
- Are Groceries Taxable?
- Notes
- Sales Tax on Groceries: Conclusion
Zamp Learnings
- Most states don’t require a sales tax on groceries.
- Even if a state does require sales tax on groceries, many tax them at a reduced rate.
- Because studies show that the most food-insecure counties in the US are ones with a grocery tax, more states are now considering abolishing their sales tax on groceries.
Most states don’t require you to pay sales tax on groceries, like bread and vegetables. However, there are a few states that do, with sales tax rates varying. This comes as inflation remains high on several food items, causing Americans to pay more out of pocket than ever before.
The U.S. Census Bureau conducted a Household Pulse Study in 2024, which found that 6.5 million Americans often do not have enough to eat within the past seven days.
This article will discuss what you need to know about sales tax on groceries.
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Why Are Groceries Tax Exempt?
Like all taxes, sales tax is political. States often exempt necessities like food, medicine, and sometimes even clothing from sales tax.
In fact, studies have shown that the most food-insecure US counties are the ones that still levy a sales tax on groceries. A recent US trend has states like Virginia and Kansas either phasing out or abolishing the state sales tax on groceries altogether.
How Grocery Sales Tax Works
Currently, 14 US states have some form of state or local sales tax on groceries.
Several of these states have no statewide sales tax on groceries but allow local areas to still require a sales tax on grocery sales. For example, in Georgia, groceries are not taxable at the state level. However, individual counties and other jurisdictions can still require sales tax on grocery purchases.
Grocery Sales Tax Example
Some other states tax groceries, but at a reduced rate. Missouri, for example, taxes groceries at a reduced state sales tax rate of 1.225%. But again, local areas in Missouri are also allowed to tax groceries.
Are All Groceries Tax-Exempt?
Not everything sold at a grocery store qualifies for a sales tax exemption. As with all things sales tax, each state makes its own rules and laws, including which items are considered grocery items and thus tax exempt.
Many state laws say that anything that can be bought with either state or federal Supplemental Nutritional Assistance Program (SNAP) benefits (AKA food stamps) qualifies as groceries and are tax exempt.
However, food seen as unhealthy or without nutritional value, such as candy and soft drinks, is still taxed, even in states where groceries are generally tax-exempt. Alcoholic beverages are generally always taxable and may be subject to an additional excise tax.
Prepared food (sometimes also called “food ready to eat”) is generally always subject to sales tax. However, states can get so granular that sometimes they consider food items “ready to eat” if they are sold with utensils but “grocery food” (and therefore non-taxable) if they are sold without utensils.
The key takeaway is if you sell foods and beverages and have sales tax nexus in a state where groceries are non-taxable, always double-check to be sure that the actual items you sell qualify for the state’s sales tax exemption.
Free Download: Sales Tax Guide for E-Commerce
Sales Tax by State: Are Groceries Taxed?
Several states, including Idaho, South Dakota, Mississippi, and others, require consumers to pay grocery sales tax. Other states tax groceries at a reduced rate or charge them at the local level.
Below is a list of states and how they tax grocery items. Be sure to understand each state’s definition of “groceries” when deciding when (and when not) to collect sales tax on food items.
States That Tax Groceries
Below is a list of states and how they tax grocery items. Be sure to understand each state’s definition of “groceries” when deciding when (and when not) to collect sales tax on food items.
State | Are Groceries Taxable? | Notes |
---|---|---|
Alabama | Yes | - |
Alaska | No, but local tax rates may apply | Alaska has no statewide sales tax, but local tax rates may apply |
Arizona | No | - |
Arkansas | Yes, but at a reduced rate | Grocery items are taxed at a rate of 1.5% plus any applicable local sales tax |
California | No | - |
Colorado | No | - |
Connecticut | No | - |
Florida | No | - |
Georgia | No, but local tax rates may apply | Local areas (counties, cities, etc.) in Georgia are allowed to require sales tax on groceries |
Hawaii | Yes | - |
Idaho | Yes | - |
Illinois | Yes, but at a reduced rate, and local tax rates may apply | Groceries in Illinois are taxed at a reduced rate of 1%. Illinois local areas (cities, counties, etc.) are allowed to require sales tax on groceries. (Illinois Revenue) Important note: Illinois will remove the statewide grocery sales tax in 2026, though local municipalities can still charge a 1% sales tax on groceries. |
Indiana | No | - |
Iowa | No | - |
Kansas | Yes, but at a reduced rate, and local tax rates may apply | Groceries in Kansas were reduced to a tax rate of 2% on January 1, 2014. Starting on January 1, 2025, the rate will reduce to 0%, although Kansas local areas (cities, counties, etc.) are allowed to require sales tax on groceries. (Kansas Department of Revenue) |
Kentucky | No | - |
Louisiana | No | - |
Maine | No | - |
Maryland | No | - |
Massachusetts | No | - |
Michigan | No | - |
Minnesota | No | - |
Mississippi | Yes | - |
Missouri | Yes, but at a reduced rate, and local tax rates may apply | Groceries in Missouri are taxed at a reduced rate of 1.225%. The reduced rate applies to all types of items that can be bought with SNAP benefits (aka food stamps). Missouri local areas (cities, counties, etc.) are allowed to require sales tax on groceries. (Missouri Department of Revenue) |
Nebraska | No | - |
Nevada | No | - |
New Jersey | No | - |
New Mexico | No | - |
New York | No | - |
North Carolina | No | - |
North Dakota | No | - |
Ohio | No | - |
Oklahoma | No | - |
Pennsylvania | No | - |
Rhode Island | No | - |
South Carolina | No, but local tax rates may apply | Groceries that can be bought with federal food stamps are tax-exempt at the state level. South Carolina local areas (cities, counties, etc.) are allowed to require sales tax on groceries. (South Carolina Department of Revenue) |
South Dakota | Yes | - |
Tennessee | Yes, but at a reduced rate, and local tax rates may apply | Groceries in Tennessee are taxed at a reduced state sales tax rate of 4%. Tennessee local areas (cities, counties, etc.) are allowed to require sales tax on groceries. (Tennessee Department of Revenue) |
Texas | No | - |
Utah | Yes | Groceries in Utah are taxed at a reduced state rate of 3%. (Utah State Tax Commission) |
Vermont | No | - |
Virginia | No | - |
Washington | No | - |
Washington DC | No | - |
West Virginia | No | - |
Wisconsin | No | - |
Wyoming | No | - |
Sales Tax on Groceries: Conclusion
In conclusion, several states charge sales tax on groceries. Some offer a reduced rate, while others leave the decision to local lawmakers. There may be exceptions in every state as to what is charged and not charged, from certain food ingredients to prepared food.
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Taxes on Groceries: FAQ
In our research, we found that Mississippi has the highest sales tax on groceries at 7%.
Research from the Tax Foundation shows that Alaska, Delaware, Montana, New Hampshire, and Oregon (NOMAD states) do not charge sales tax on groceries, candy, or soda.
- Zamp Learnings
- Why Are Groceries Tax Exempt?
- How Grocery Sales Tax Works
- Grocery Sales Tax Example
- Are All Groceries Tax-Exempt?
- Free Download: Sales Tax Guide for E-Commerce
- Sales Tax by State: Are Groceries Taxed?
- States That Tax Groceries
- State
- Are Groceries Taxable?
- Notes
- Sales Tax on Groceries: Conclusion