Does the Commissary Charge Tax or Just a Surcharge?

No, the commissary does not charge sales tax. Federal law exempts every military commissary from state and local sales tax, so no matter where you shop or what the local rate would be, tax never appears on your receipt. What you will see is a flat 5% surcharge added to every purchase. That surcharge is not a tax; it is a legally required charge that funds the buildings and equipment of the commissary system itself.¹

Why Commissaries Are Tax-Free

The exemption comes from the Buck Act, codified at 4 U.S.C. §§ 104–110. The Buck Act generally allows states to collect sales and use taxes on purchases made inside federal areas like military bases.² But a separate section of the same law bars states from taxing the United States or its instrumentalities, and from taxing sales those instrumentalities make to authorized purchasers.³

Commissaries fit that exception. They are run directly by the Department of Defense, and the statute specifically names commissaries and ship’s stores as protected federal operations, with authorized purchasers defined as people permitted to shop there under military regulations.³ The Senate report accompanying the Buck Act made this explicit: property a service member buys from a commissary is exempt from state sales tax because the commissary is an instrumentality of the United States.⁴

So the local rate is irrelevant. Whether you’re stationed somewhere with a 4% sales tax or a 10% combined state and local rate, your commissary receipt will not include any of it.

The 5% Surcharge on Your Receipt

The line item that trips up new shoppers is the 5% surcharge. Federal law requires the Secretary of Defense to apply a uniform surcharge to every item sold in a commissary, and the current rate is 5%.⁵

To see why it exists, look at how commissary prices are set. The law requires each item to be priced at what it cost the government to acquire, including transportation, shrinkage, and spoilage. There is no built-in profit margin the way a civilian grocery store has one.⁵ The surcharge is layered on top so the system can pay for its own facilities without depending on Congress to appropriate every dollar of upkeep.

The rate is the same worldwide. On a $200 grocery run, the surcharge adds $10. Unlike sales tax, it does not vary by county, state, or country.

How Coupons Affect the Surcharge

If you use manufacturer coupons, note the order of operations. The surcharge is calculated on the pre-coupon total, not on what you actually pay. Groceries totaling $100 with $50 in coupons still generate a $5 surcharge, for a final total of $55.⁶ That is a legal requirement, not a store choice. The surcharge must apply to the full cost of all goods sold.

Where the Surcharge Money Goes

Surcharge revenue does not flow into the general Treasury. By statute, the Secretary of Defense can spend it only to acquire, construct, expand, improve, repair, maintain, and equip commissary stores and central processing facilities.⁵ In practical terms, your surcharge dollars pay for refrigeration systems, parking lot repairs, checkout equipment, and building renovations. The earmarking keeps the commissary system partly self-sustaining for infrastructure.

Items That Don’t Follow the Standard Model

A few products on the commissary shelf are priced differently. Tobacco is sold with the military exchange system acting as vendor inside the commissary. The standard cost-based pricing and 5% surcharge rules do not apply; commissary tobacco prices match exchange prices, and any revenue above procurement cost is allocated as if it were surcharge revenue.⁵

Beer and wine are handled through a similar arrangement. Commissaries carry a limited selection purchased for resale from the exchanges and do not stock distilled spirits. When beer or wine rings up, the 5% surcharge does apply on top of the exchange-set price.¹

What You Actually Pay Compared to Off-Base Stores

DeCA tracks commissary prices against local commercial groceries and reports the results quarterly. For the first quarter of fiscal year 2026, the global average savings rate was 25.0%. Stateside commissaries averaged 21.5%, and overseas locations averaged 41.0%.⁷

Within the United States, the number varies by region. Alaska and Hawaii commissaries averaged 31.3% savings, the Pacific region 24.1%, and the North Central region 18.9%.⁷ DeCA’s annual financial report for FY 2025 stated the agency delivered over $1 billion in direct savings to the military community that year.⁸ Those savings figures already account for the 5% surcharge, so they reflect what you actually pocket at the register.

One More Cost at Checkout: Bagger Tips

Something to plan for at the register: commissary baggers are not DeCA employees. They receive no hourly wage, no salary, and no compensation from the agency. They work for tips only.⁹

In 1997, a group of baggers sued DeCA seeking minimum wage, and the lawsuit was later dropped. Commissaries have posted signage since then to make the tip-only arrangement clear.⁹ If you decline to tip, the bagger receives nothing for bagging your groceries and loading your car. A few dollars per trip is typical, and a full cart warrants more.

1
Defense Commissary Agency. About the Defense Commissary Agency
2
Office of the Law Revision Counsel. 4 U.S. Code 105 – State, and So Forth, Taxation Affecting Federal Areas; Sales or Use Tax
3
Office of the Law Revision Counsel. 4 U.S. Code 107 – Same; Exception of United States, Its Instrumentalities, and Authorized Purchasers Therefrom
4
Congress.gov. Taxing Authority in Federal Areas
5
Office of the Law Revision Counsel. 10 U.S. Code 2484 – Commissary Stores: Merchandise That May Be Sold; Uniform Surcharges and Pricing
6
Defense Commissary Agency. FAQs – Surcharge
7
Defense Commissary Agency. Patron Savings
8
Defense Commissary Agency. Defense Commissary Agency Financial Report FY 2025
9
The United States Army. To Tip or Not to Tip? Commissary Question Answered