The “grocery tax” is a sales tax applied to food items purchased for home consumption. While many US states have made groceries exempt from sales tax to reduce the burden on lower-income households, some states tax groceries either at a standard or reduced sales tax rate. The tax treatment for groceries can vary widely between states, and sometimes it varies by jurisdiction within a state. This can decrease the affordability of basic necessities for residents. In states where groceries are taxed, there are often debates about the impact on food security and economic inequality.

Below is an overview of how grocery tax is handled in each US state. This is important information for consumers and businesses alike.

What’s in this article?

• States with no tax on groceries
  
• States with a reduced tax rate on groceries
  
• States with a standard sales tax rate on groceries
  

States with no sales tax on groceries

These states don’t charge sales tax on groceries, though there can be local taxes applied in certain cities and counties.

No state sales tax at all

• Alaska

• Delaware

• Montana

• New Hampshire

• Oregon

No state sales tax on groceries

• Alaska*

• Arizona

• California

• Colorado

• Connecticut

• Delaware*

• Florida

• Georgia

• Indiana

• Iowa

• Kansas

• Kentucky

• Louisiana

• Maine

• Maryland (with exceptions)

• Massachusetts

• Michigan

• Minnesota

• Montana*

• Nebraska

• Nevada

• New Hampshire*

• New Jersey

• New Mexico

• New York

• North Carolina

• North Dakota

• Ohio

• Oklahoma

• Oregon*

• Pennsylvania

• Rhode Island

• South Carolina

• Texas

• Vermont

• Washington

• West Virginia

• Wisconsin

• Wyoming

*No state sales tax at all

States with a reduced tax rate on groceries

These states have a reduced tax rate on groceries at the state level.

• Alabama: 3.000%

• Arkansas: 0.125%

• Illinois: 1.000%

• Missouri: 1.225%

• Tennessee: 4.000%

• Utah: 1.750%

• Virginia: 1.000%

States with a standard sales tax rate on groceries

These US states charge their standard sales tax rate on groceries.

• Hawaii: 4.000% (Some residents can claim a tax credit on their tax returns.)

• Idaho: 6.000% (Most residents can claim a grocery credit on their tax returns.)

• Mississippi: 7.000%

• South Dakota: 4.200%