Is Food Taxable? Grocery Sales Tax by State
Is Food Taxable? Grocery Sales Tax by State
Is food taxable?
Food taxability depends on the state, the product, and how the seller prepares or packages it. Most states exempt staple groceries or apply a reduced rate, while three apply the full state rate. Five states have no state sales tax. Prepared food often receives different treatment, especially when a seller heats it or provides utensils. States may also tax candy, soft drinks, and dietary supplements differently from other groceries. Local taxes can still apply when a state exempts groceries, so sellers must check both state and local rules for each transaction.
Which states tax groceries?
Ten states tax groceries at the state level: seven at a reduced rate and three at the full state rate.
Thirty-six jurisdictions classify groceries as exempt. They are Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, West Virginia, Wisconsin, Wyoming, and Washington, DC.
Seven states classify groceries at a reduced rate. They are Alabama, Mississippi, Missouri, North Carolina, Tennessee, Utah, and Virginia.
Three states apply the full state rate. They are Hawaii, Idaho, and South Dakota. Hawaii imposes a general excise tax on grocery sellers.
Five states have no state sales tax. They are Alaska, Delaware, Montana, New Hampshire, and Oregon.
Do states with no sales tax still tax groceries at the local level?
Alaska is the only state without a state sales tax where local grocery taxes are confirmed. Alaska municipalities and boroughs can apply local sales taxes to groceries, and exemptions vary by jurisdiction.
Delaware has no state or local sales tax, although sellers may owe gross receipts tax. Montana has no general sales tax. New Hampshire has no general sales tax, but prepared meals can fall under its Meals and Rooms Tax. Oregon has no state or local sales tax.
Do local sales taxes apply in states that exempt groceries?
Local grocery taxes can apply even when the state exempts qualifying food. Colorado allows home-rule cities to set their own rules. Illinois repealed its state grocery rate, but municipal, county, and regional grocery taxes may apply.
Georgia exempts qualifying food from state tax while applicable local taxes still apply. Kansas applies a 0% state rate to qualifying food, but all local sales and use taxes still apply. Oklahoma limits its grocery exemption to the state portion.
Arkansas still applies county and municipal grocery taxes. South Carolina subjects qualifying unprepared food to local sales taxes unless the local tax specifically exempts it.
What triggers a reduced rate or exemption threshold on groceries?
A grocery exemption or reduced rate usually depends on the product and how the seller offers it. States may limit favorable treatment to food intended for home consumption or products that meet a federal food definition. Heated food, prepared meals, dietary supplements, candy, and soft drinks may follow different rules.
The sales channel can change the tax treatment. Some states exclude vending-machine sales or food prepared for immediate consumption. A bundled meal sold for one price may receive the general rate even when its individual components qualify for grocery treatment.
Seller and sales-mix tests also matter. Missouri denies the reduced food rate when more than 80% of an establishment’s gross receipts come from food prepared for immediate consumption. Virginia denies its reduced rate when immediate-consumption food sales are 80% or more of total sales. Maryland requires grocery or market items to account for at least 10% of a seller’s food sales for qualifying off-premises food to receive the exemption.
What can grocery sales tax misclassification cost?
Mississippi’s rate difference shows how a classification error can affect a seller’s liability. The Mississippi Department of Revenue taxes qualifying groceries at 5% and other retail items at 7%. For $1,000,000 in sales incorrectly classified as groceries, the calculation is $1,000,000 × (7% − 5%) = $20,000 in undercollected tax.
A seller may owe that $20,000 even if collecting it from customers later proves impractical. Classifying qualifying groceries at 7% creates the opposite problem. Customers pay $20,000 more than the applicable state rate requires, which can lead to refund requests and amended returns.
How does Taxwire support grocery sales tax compliance?
Taxwire provides managed filing for multistate sellers and supports indirect tax compliance in the United States, United Kingdom, European Union, Canada, Australia, New Zealand, and Norway. Implementation takes one week, and support response time is under one hour.
Taxwire charges $100 per United States return, $150 per United States registration, and $200 per hour for voluntary disclosure agreement advisory work. International pricing is scheme-specific. Taxwire charges $300 for the United Kingdom, Australia, and New Zealand, $250 for Canada, $500 for an OSS Union Member, and $100 for simplified international service.
How do states distinguish groceries from prepared food?
States classify food according to the product and how the seller prepares or presents it. Staple food sold for home preparation often qualifies for a grocery exemption or reduced rate. Heating food for immediate consumption or providing utensils can place the sale under prepared-food rules.
Member states of the Streamlined Sales Tax Agreement use shared definitions for food and food ingredients. The SST prepared-food definition considers factors such as seller heating, seller preparation, and utensils provided by the seller. Separate definitions cover candy, soft drinks, and dietary supplements. Each member state can apply its own tax treatment to those defined categories.
Non-SST states use their own definitions. California exempts food for human consumption but taxes hot prepared food products. New York generally requires qualifying food to be sold unheated and in grocery-store form and packaging.
Candy, soft drinks, and dietary supplements often receive different treatment from staple groceries. Minnesota excludes all three categories from its food exemption. Colorado taxes candy and soft drinks and excludes dietary supplements from its grocery definition. Sellers should classify each category separately instead of applying one grocery rule to every edible product.
Can food purchased with SNAP benefits be taxed?
Purchases made with SNAP benefits are exempt from sales tax. Mississippi and Vermont use food definitions that distinguish qualifying grocery purchases from taxable products. Sellers must still apply each state’s product rules for prepared food, candy, soft drinks, and dietary supplements.
What is the grocery sales tax in each state?
Rates and rules as of September 2026.
State | Grocery status | Conditions or reduced rate | Candy taxed? | Soft drinks taxed? | Local tax note | Effective date | Source |
|---|---|---|---|---|---|---|---|
Alabama | Reduced rate | 2% state rate on qualifying food | Confirm with state DOR | Confirm with state DOR | City and county food rates generally match their general rates, but localities may reduce them in 25% increments | September 1, 2025 | https://www.revenue.alabama.gov/notice-state-sales-and-use-tax-rate-reduced-on-food-beginning-september-1-2025/ |
Alaska | No state sales tax | No statewide sales tax | No state sales tax | No state sales tax | Local sales taxes can apply to groceries, and exemptions vary by jurisdiction | Confirm with state DOR | https://arsstc.org/wp-content/uploads/2022/07/AMSTP-News-Notes-2022-Quarter-2.pdf |
Arizona | Exempt | Qualifying food is exempt from state transaction privilege tax | Confirm with state DOR | Confirm with state DOR | Many cities impose transaction privilege tax on food for home consumption | Confirm with state DOR | https://www.azdor.gov:443/sites/default/files/2023-03/PUBLICATION_2018_575.pdf |
Arkansas | Exempt | Food and food ingredients are exempt from state tax | Confirm with state DOR | Confirm with state DOR | County and municipal grocery taxes still apply | January 1, 2026 | https://www.arkansashouse.org/news/post/33020/laws-taking-effect-january-1st/ |
California | Exempt | Food for human consumption is generally exempt, but hot prepared food is taxable | Confirm with state DOR | Confirm with state DOR | Local treatment follows applicable California rules | Confirm with state DOR | https://www.cdtfa.ca.gov/lawguides/vol1/sutr/1602.html |
Colorado | Exempt | Food for domestic home consumption is exempt | Taxed at general rate | Taxed at general rate | Home-rule cities set their own rules | Confirm with state DOR | https://tax.colorado.gov/sites/tax/files/documents/PLR-11-008.pdf |
Connecticut | Exempt | Food for human consumption is exempt, except meals sold by eating establishments or caterers | Taxed at general rate | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://portal.ct.gov/DRS/Publications/Policy-Statements/1999/PS-991-Sale-and-Use-Taxes-on-Meals |
Delaware | No state sales tax | No state or local sales tax, but sellers may owe gross receipts tax | No state sales tax | No state sales tax | No local sales tax | Confirm with state DOR | https://revenue.delaware.gov/doing-business-in-delaware/step-4-gross-receipts-taxes |
District of Columbia | Exempt | Grocery-type food sold for home preparation or consumption is exempt | Confirm with state DOR | Confirm with state DOR | Confirm with District tax authority | Confirm with District tax authority | https://preview-otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/tax_guide_food.pdf |
Florida | Exempt | Food products for human consumption are generally exempt | Taxed at general rate | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://floridarevenue.com:443/taxes/tips/documents/TIP_00A01-05.pdf |
Georgia | Exempt | Food for off-premises consumption is exempt from state tax | Exempt | Exempt | Applicable local taxes apply | Confirm with state DOR | https://dor.georgia.gov/document/sut-lr/lr-sut-2014-18/download |
Hawaii | Full state rate | General excise tax applies to grocery sellers | Confirm with state DOR | Confirm with state DOR | County surcharges may apply | Confirm with state DOR | https://data.capitol.hawaii.gov/sessions/session2026/Bills/HB1611_.HTM |
Idaho | Full state rate | Groceries are taxed at the general rate, and the resident grocery credit does not change seller collection | Confirm with state DOR | Confirm with state DOR | Confirm with state tax authority | Confirm with state DOR | https://tax.idaho.gov/?p=4727 |
Illinois | Exempt | The state grocery rate was repealed | Confirm with state DOR | Confirm with state DOR | Municipal, county, and regional grocery taxes may apply | January 1, 2026 | https://tax.illinois.gov/research/publications/bulletins/fy-2026-11.html |
Indiana | Exempt | Food and food ingredients are exempt | Taxed at general rate | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://secure.in.gov/dor/files/reference/sib29.pdf |
Iowa | Exempt | Food for off-premises consumption is exempt | Taxed at general rate | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://revenue.iowa.gov/taxes/tax-guidance/sales-use-excise-tax/iowa-sales-tax-food |
Kansas | Exempt | State rate on food and food ingredients is 0% | Confirm with state DOR | Confirm with state DOR | All local sales and use taxes still apply | January 1, 2025 | https://ksrevenue.gov/taxnotices/notice24-21.pdf |
Kentucky | Exempt | Food and food ingredients are exempt, with statutory exclusions | Taxed at general rate | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://revenue.ky.gov/News/Publications/Sales%20Tax%20Newsletters/Sales%20Tax%20Facts%202014%20-%20Dec.pdf |
Louisiana | Exempt | Food for preparation and consumption in the home is exempt from state tax | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | https://www.revenue.la.gov/tax-education-and-faqs/faqs/fairs-festivals-and-other-special-events/is-there-sales-tax-on-food |
Maine | Exempt | Grocery staples are exempt | Taxed at general rate | Taxed at general rate | Confirm with Maine Revenue Services | Confirm with Maine Revenue Services | https://www.maine.gov/REVENUE/salesuse/IB12RetailersofFoodProducts022020.pdf |
Maryland | Exempt | Off-premises food qualifies when grocery or market items make up at least 10% of the seller’s food sales | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | https://marylandtaxes.gov/business/sales-use/special-situations/sales-of-food.php |
Massachusetts | Exempt | Food products are exempt unless prepared and provided by a restaurant | Exempt | Exempt | Confirm with state DOR | Confirm with state DOR | https://www.mass.gov/regulations/830-CMR-64h65-sales-tax-on-meals |
Michigan | Exempt | Food and food ingredients are exempt, except prepared food for immediate consumption | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | https://ombudsman.legislature.mi.gov/documents/2023-2024/publicact/pdf/2023-PA-0142.pdf |
Minnesota | Exempt | Qualifying food is exempt | Taxed at general rate | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://www.revenue.state.mn.us/sites/default/files/2023-07/fs102a.pdf |
Mississippi | Reduced rate | 5% on qualifying groceries | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | July 1, 2025 | https://www.dor.ms.gov/sites/default/files/Business/72-25-03%20New%205%25%20Sales%20Tax%20Rate%20on%20Groceries.pdf |
Missouri | Reduced rate | 1.225% on qualifying food, subject to the 80% prepared-food seller test | Taxed at food rate | Confirm with state DOR | All local sales taxes apply | Confirm with state DOR | https://dor.mo.gov/business/sales/foodtax.php |
Montana | No state sales tax | No general state sales tax | No state sales tax | No state sales tax | Confirm local resort tax treatment with the municipality | Confirm with state DOR | https://revenuefiles.mt.gov/taxes/general-sales-tax |
Nebraska | Exempt | Food and food ingredients are exempt, except prepared and vending-machine food | Exempt | Exempt | Confirm with state DOR | Confirm with state DOR | https://www.nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB170.pdf |
Nevada | Exempt | Food for human consumption is generally exempt, except prepared food for immediate consumption | Confirm with state DOR | Confirm with state DOR | Confirm with state tax authority | Confirm with state DOR | https://tax.nv.gov/wp-content/uploads/2025/07/R056-18A.pdf |
New Hampshire | No state sales tax | No general sales tax, but prepared meals are taxed separately | No state sales tax | No state sales tax | Meals and Rooms Tax can apply to prepared meals | Confirm with state DOR | https://WWW.REVENUE.NH.GOV/faq/meals-rooms.htm |
New Jersey | Exempt | Food and food ingredients are exempt | Taxed at general rate | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://nj.gov/treasury/taxation/pdf/ssutfood.pdf |
New Mexico | Exempt | SNAP-eligible food sold by a retail food store qualifies for a gross receipts tax deduction | Confirm with state DOR | Confirm with state DOR | Confirm with New Mexico Taxation and Revenue | Confirm with state DOR | https://realfile.tax.newmexico.gov/FYI-201.pdf |
New York | Exempt | Qualifying food must be sold unheated and in grocery-store form and packaging | Taxed at general rate | Taxed at general rate | Confirm with state tax authority | Confirm with state DOR | https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/food_sold_by_food_stores.htm |
North Carolina | Reduced rate | Qualifying food is subject to a 2% local rate | Taxed at general rate | Taxed at general rate | Transit and other local rates do not apply to qualifying food | Confirm with state DOR | https://ncdor.gov/taxes-forms/sales-and-use-tax/food-non-qualifying-food-and-prepaid-meal-plans |
North Dakota | Exempt | Food and food ingredients for domestic home consumption are generally exempt | Taxed at general rate | Taxed at general rate | Confirm with state tax authority | Confirm with state DOR | https://www.tax.nd.gov/sites/www/files/documents/guidelines/business/sales-use/gl-22062-1.pdf |
Ohio | Exempt | Food consumed off premises is exempt | Exempt | Taxed at general rate | Confirm with state tax authority | Confirm with state DOR | https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/sales_and_use/information_releases/st200401.pdf |
Oklahoma | Exempt | Food and food ingredients are exempt from the state portion | Confirm with state DOR | Confirm with state DOR | Municipal and county taxes still apply | August 29, 2024 | https://oklahoma.gov/tax/businesses/state-sales-tax-on-food-and-food-ingredients |
Oregon | No state sales tax | No general sales or use tax | No state sales tax | No state sales tax | No local sales tax | Confirm with state DOR | https://www.oregon.gov/dor/programs/businesses/Pages/Sales-tax.aspx |
Pennsylvania | Exempt | Qualifying groceries are exempt | Confirm with state DOR | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://www.revenue.pa.gov:443/TaxLawPoliciesBulletinsNotices/TaxBulletins/SUT/Documents/st_bulletin_2021-02.pdf |
Rhode Island | Exempt | Food and food ingredients for human consumption are exempt | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | https://tax.ri.gov/sites/g/files/xkgbur541/files/regulations/FINAL-REGS-2009/FoodandFoodIngredientsRegFinal-v2-02122010.pdf |
South Carolina | Exempt | Qualifying unprepared food is exempt from state tax | Confirm with state DOR | Confirm with state DOR | Local sales taxes apply unless the local tax specifically exempts food | November 1, 2007 | https://dor.sc.gov/resources-site/lawandpolicy/Documents/SC%20Sales%20Tax%20Manual.pdf |
South Dakota | Full state rate | 4.2% general state rate, scheduled to return to 4.5% | Confirm with state DOR | Confirm with state DOR | Municipal tax may apply | July 1, 2027 scheduled rate change | https://mylrc.sdlegislature.gov/api/Documents/SessionLaw/251389.pdf?Year=2023 |
Tennessee | Reduced rate | 4% state food rate | Taxed at general rate | Taxed at food rate | Local rates of up to 2.75% apply | Confirm with state DOR | https://revenue.support.tn.gov/hc/en-us/articles/360058680751--SUT-53-Food-and-Food-Ingredients-Definition-and-Tax-Rate |
Texas | Exempt | Qualifying groceries are exempt | Confirm with state DOR | Taxed at general rate | Confirm with Comptroller | Confirm with state DOR | https://comptroller.texas.gov/taxes/publications/96-280.php |
Utah | Reduced rate | 3% statewide food rate | Taxed at food rate | Taxed at food rate | State and local components are included in the statewide food rate | April 1, 2026 | https://tax.utah.gov/sales/food-rate?format=pdf |
Vermont | Exempt | Food and food products are exempt | Exempt | Taxed at general rate | Confirm with state tax authority | July 1, 2015 soft-drink rule | https://tax.vermont.gov/node/4542 |
Virginia | Reduced rate | 1% statewide rate, subject to the 80% immediate-consumption food sales test | Confirm with state DOR | Confirm with state DOR | Statewide reduced rate | Confirm with state DOR | https://tax.virginia.gov/grocery-tax |
Washington | Exempt | Most grocery food is exempt | Exempt | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://dor.wa.gov/book/export/html/1169 |
West Virginia | Exempt | Food and food ingredients are exempt | Confirm with state DOR | Taxed at general rate | State and local sales taxes do not apply to qualifying food | July 1, 2013 | https://tax.wv.gov/Documents/SST/matrix0807.pdf |
Wisconsin | Exempt | Food and food ingredients are exempt, except specified categories | Taxed at general rate | Taxed at general rate | Confirm with state DOR | Confirm with state DOR | https://WWW.REVENUE.WI.GOV/Documents/GrocersWebinar-Part2.pdf |
Wyoming | Exempt | Food for domestic home consumption is exempt | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | Confirm with state DOR | https://wyoleg.gov/2007/Bills/HB0093.pdf |
Frequently asked questions about grocery sales tax
Is bottled water taxed as a grocery?
Bottled water treatment varies by state. Maine excludes water, including bottled mineral and carbonated water, from grocery staples. Sellers must check the product definition for the customer’s delivery state.
Are bakery items taxed differently at grocery stores and restaurants?
Bakery items can receive different treatment based on the seller and how the food is prepared or served. Louisiana includes qualifying bakery products in its state exemption for food prepared and consumed at home, while prepared food can follow a different rule.
Do vitamins and dietary supplements count as groceries?
Dietary supplements often fall outside grocery exemptions. Colorado excludes dietary supplements from food for domestic home consumption.
Is food delivered by a third-party app taxed the same as in-store food?
Delivery does not automatically change a product’s classification, but the responsible seller can vary under state marketplace rules. Sellers must identify the party responsible for collection and apply the destination state’s rules to groceries and prepared food.
Does a grocery exemption apply to online and catalog orders?
A grocery exemption generally follows the product and destination instead of the ordering channel. New York requires qualifying food to be sold unheated and in the form and packaging commonly used by retail food stores.
Do local sales taxes ever apply on top of a state grocery exemption?
Local taxes can apply when a state exempts groceries from its own tax. Kansas applies a 0% state rate to qualifying food, but all local sales and use taxes still apply.