Grocery sales tax by state runs the full range, from complete exemption to rates as high as 6%. Most states leave unprepared food out of their general sales tax, a smaller group taxes it at a reduced rate, and a shrinking handful still apply the full rate at the register. Five states avoid the question entirely by imposing no general sales tax at all: Alaska, Delaware, Montana, New Hampshire, and Oregon. Wherever you live, the state rule is only half the picture, because local taxes and product classification rules do a lot of the work at checkout.
States That Exempt Groceries From State Sales Tax
Most states fully exempt unprepared food from their state-level sales tax. California, Texas, Florida, New York, New Jersey, and Pennsylvania are among the largest examples. Bread, milk, produce, canned goods, and raw meat purchased for home consumption do not carry the same state tax as general merchandise.
The exempt group has grown recently. Arkansas dropped its state grocery tax rate to zero on January 1, 2026, after years of gradual reductions. Illinois eliminated its remaining one-percent state grocery levy on the same date. Kansas completed a three-year stepdown from 6.5% to zero on January 1, 2025. Virginia removed its state-level grocery tax in 2025 and is working toward eliminating the remaining local portion by 2027.
A state exemption applies only to the state share. Local governments in many of these states keep the authority to tax food on their own, so the receipt total on groceries is rarely actually zero.
States That Tax Groceries at a Reduced Rate
Several states take a middle path, taxing food at a lower rate than general merchandise.
- Missouri taxes food at 1.225%, compared with 4.225% for other retail goods. Local taxes apply on top.
- Utah sets a state rate of 1.75% on food, but mandatory local and county add-ons bring the combined grocery rate to 3% statewide.
- Mississippi taxes groceries at 5%, reduced from its general 7% rate, still one of the highest grocery tax rates in the country.
- Alabama’s state grocery rate dropped to 2% in September 2025 from 4%. A temporary suspension took the state portion to zero between May 1 and June 30, 2026, though local taxes kept applying during that window.
States That Tax Groceries at the Full Rate
A small and shrinking number of states apply their standard sales tax to groceries with little or no reduction. Hawaii taxes food at its full 4% general excise tax rate, with counties adding up to another 0.5%. South Dakota taxes groceries at 4.2%, a slight cut from its general 4.5% rate but still meaningful compared with explicit-exemption states. Idaho applies its full 6% state rate to food, then offsets the burden through an income tax credit rather than an exemption at the register.
Grocery Tax Credits Instead of Exemptions
Some states that tax food at the register hand the money back through the income tax.
- Idaho residents can claim a grocery credit of $155 per person on their state return. Those who save and submit receipts documenting sales tax actually paid on food can claim up to $250 instead.
- Hawaii offers a food excise tax credit of up to $220 per person for single filers with adjusted gross income below $40,000 or joint filers below $60,000.
The credit approach has a real drawback for the people it is meant to help. You have to file a state return to collect, which means low-income residents who would not otherwise need to file can miss out. The credit also arrives once a year, so the week-to-week grocery bill still feels the tax even if the annual math works out.
How Local Taxes Change What You Actually Pay
A state-level exemption does not guarantee tax-free groceries. Cities, counties, and special districts in many states charge their own sales taxes, and those levies often apply to food even when the state portion does not.
Georgia is a clear example. The state exempts groceries from its 4% sales tax, but local jurisdictions add levies that can bring 3% to 4% back onto the price. South Carolina exempts unprepared food from state sales tax, but the exemption does not extend to local taxes unless the local ordinance specifically includes food. Kansas still allows local sales taxes on food after its 2025 state repeal, and the same is true in Illinois after its 2026 exemption took effect. Two shoppers in neighboring counties can pay noticeably different totals on the same cart.
What Counts as Food for Home Consumption
Tax law does not define “groceries” the way shoppers do. Many states follow definitions from the Streamlined Sales and Use Tax Agreement, under which food means substances sold for ingestion or chewing by humans and consumed for their taste or nutritional value.1Streamlined Sales Tax Governing Board. Food Definition Issues Produce, meat, dairy, canned goods, frozen meals, and pantry staples fit comfortably inside that definition. The complications start with what gets carved out.
Prepared Food
Prepared food is almost universally taxed at the full rate, even in exemption states. The category covers food sold heated, food where the seller has combined two or more ingredients into a single item for sale, and food sold with eating utensils provided by the retailer.1Streamlined Sales Tax Governing Board. Food Definition Issues A rotisserie chicken under a heat lamp is taxable; the raw chicken in the refrigerated case a few aisles over is exempt.
The utensils rule has a threshold that keeps ordinary supermarkets out of trouble. A seller only triggers the utensils-based prepared food classification when more than 75% of the establishment’s total food, soft drink, and alcohol sales come from prepared items.1Streamlined Sales Tax Governing Board. Food Definition Issues A grocery store with a small deli counter stays well under that ceiling, so forks by the salad bar do not make the rest of the store taxable.
Candy and Soft Drinks
Candy and soft drinks are excluded from the grocery exemption in most states that use the streamlined definitions. Candy means a preparation of sugar or other sweeteners combined with chocolate, fruits, nuts, or flavorings in the form of bars, drops, or pieces.2Streamlined Sales Tax Governing Board. Rule 327.6.1 Candy Definition The important exception: if the product contains flour, it is not candy for tax purposes. A plain chocolate bar is taxable candy. A Kit Kat contains flour and is exempt food in states following this definition. Products that require refrigeration are also excluded from the candy classification.
Soft drinks are defined as non-alcoholic beverages that contain natural or artificial sweeteners. Beverages with milk products, soy or rice milk substitutes, or more than 50% fruit or vegetable juice by volume are not soft drinks and stay tax-exempt as food.1Streamlined Sales Tax Governing Board. Food Definition Issues A bottle of sweetened iced tea is taxable. Unsweetened orange juice is not.
Dietary Supplements
Dietary supplements sit in an awkward middle ground. Under the streamlined framework, any product labeled with a “Supplement Facts” panel is a dietary supplement rather than food, even if a consumer thinks of it as nutritional.1Streamlined Sales Tax Governing Board. Food Definition Issues Most states following this standard tax supplements at the full rate. The line comes down to labeling: “Nutrition Facts” qualifies as food, “Supplement Facts” does not. Not every state applies this uniformly. Florida treats dietary supplements as exempt food under its own statutory definitions.
SNAP and WIC Purchases Are Always Exempt
No matter what a state’s grocery tax policy says, purchases made with federal nutrition benefits are exempt from sales tax. Federal regulations for the Special Supplemental Nutrition Program for Women, Infants, and Children prohibit vendors from collecting sales tax on food obtained with WIC food instruments or cash-value vouchers.3eCFR. 7 CFR Part 246 Subpart E – State Agency Provisions SNAP works the same way. When a transaction splits between SNAP and another payment method, sales tax applies only to the non-SNAP portion.
In states like Mississippi or South Dakota, where groceries carry a meaningful tax, this federal protection means SNAP and WIC households avoid the cost entirely on qualifying purchases.
Delivery Fees on Online Grocery Orders
Delivery charges usually follow the taxability of what is being delivered. An order made up entirely of exempt groceries carries an exempt delivery fee. An order made up entirely of taxable goods carries a taxable delivery fee.
Mixed orders create a proration issue. When a delivery contains both exempt food and taxable items like cleaning supplies or paper products, the fee is typically split by the ratio of taxable to exempt value. If 70% of the order value is exempt food and 30% is taxable, then 30% of the delivery charge is subject to tax. Some states allow allocation by weight instead of price. If a retailer fails to allocate at all, many states treat the entire delivery charge as taxable when any part of the order is taxable. Shoppers who want to keep delivery fees tax-free can place separate orders, though the effort rarely pays off.
Where Grocery Taxes Are Headed
The direction is clearly toward elimination. Arkansas, Illinois, and Kansas all zeroed out their state grocery taxes between 2025 and 2026. Virginia is phasing out its remaining local grocery tax. Alabama has been cutting its rate in steps and suspended it entirely for two months in 2026. Idaho has a ballot initiative circulating for the November 2026 election that would repeal the state’s 6% tax on food. If you live in a state that still taxes groceries, expect the rate to keep drifting downward, though the exact timeline depends on your state’s budget.