Which States Tax Food? Rates, Exemptions, and Credits

As of 2026, roughly a dozen states still charge sales tax on groceries bought for home consumption, with state-level rates running from 1% in Virginia up to 5% in Mississippi. A handful of others exempt food at the state level but let cities and counties tax it. Which states tax groceries, and how much you actually pay, depends on where you live, whether local governments add their own layer, and whether your state offers a credit to give some of the money back.

The One State That Charges Its Full Sales Tax Rate on Food

South Dakota applies its full 4.2% general sales tax rate to groceries with no reduction and no offsetting credit.1South Dakota Department of Revenue. Current and Historical Tax Rates For a family spending $800 a month on food, that works out to roughly $34 a month, or more than $400 a year, on groceries alone. South Dakota has no state income tax, so there is no credit or refund mechanism to recover any of it.

States That Tax Groceries at a Reduced Rate

Several states carve out a lower rate for food while keeping a higher rate on everything else. The state-level rates as of early 2026:

  • Mississippi — 5%. Dropped from 7% on July 1, 2025. Even at the reduced rate, this is the highest grocery tax in the country. The general sales tax rate remains 7%.2Mississippi Department of Revenue. Reduced Sales Tax on Groceries Begins July 1
  • Tennessee — 4%. Below the state’s 7% general rate. Bills to eliminate the grocery tax have been introduced repeatedly but none had passed as of early 2026.3Tennessee Department of Revenue. Tennessee Sales and Use Tax Due Dates and Tax Rates
  • Utah — 3%. A statewide grocery food sales tax rate, well under the combined rates on general merchandise.4Utah State Tax Commission. Grocery Food Sales and Use Tax
  • Alabama — 2%. Phased down from 4% in recent years. For May and June of 2026, the state is temporarily suspending even that 2% on SNAP-eligible food, though local taxes continue during the suspension.5Alabama Department of Revenue. Sales and Use Tax Rates6Alabama Department of Revenue. Notice Temporary Suspension of State Sales and Use Tax on Food
  • Missouri — 1.225%. Missouri exempted groceries from its general revenue sales tax years ago but kept a 1.225% state levy earmarked for schools, conservation, and state parks. Local taxes stack on top.7Missouri Department of Revenue. Sales and Use Tax Rate Tables April 2026
  • Virginia — 1%. A flat 1% statewide on food for home consumption, the lowest reduced rate in the country.8Virginia Tax. Grocery Tax

These are state-level rates. Local sales taxes can push what you actually pay well above these figures, especially in Alabama and Missouri, where local add-ons routinely double or triple the state portion.

States That Recently Eliminated Their State Grocery Tax

The biggest change in the last two years has been a wave of states dropping the state portion entirely. If you live in one of these, no state sales tax applies to your groceries, but local governments generally kept their taxing authority over food.

Check your local rate before assuming groceries are completely tax-free in these states.

States Where Only Local Taxes Apply to Groceries

Some states dropped the state-level grocery tax years ago but never restricted local governments from taxing food. Your bill depends entirely on your city or county.

  • Georgia. Food and food ingredients sold for off-premises consumption are exempt from the state sales and use tax, but local sales and use taxes still apply. Local rates commonly run about 3% to 4%.14Cornell Law Institute. Georgia Code Ga Comp R and Regs R 560-12-2-.104 – Food Exemption
  • Louisiana. Groceries are exempt from the 4.45% state sales tax, but parish and municipal taxes continue to apply and vary widely.
  • North Carolina. Qualifying food is exempt from the state, transit, and most other local taxes, but a uniform 2% local sales tax applies statewide to grocery purchases.15North Carolina Department of Revenue. Food Non-Qualifying Food and Prepaid Meal Plans

With the recent eliminations, Illinois, Arkansas, Kansas, and Oklahoma effectively join this category too: no state tax on groceries, but local taxes still in play.

States That Give You Some of the Money Back

A few states tax groceries at the register and let residents recover part of the cost through an income tax credit. You pay upfront and claim later.

  • Idaho. The food tax credit is $155 per person for most residents, or up to $250 if you submit actual receipts showing the sales tax paid on food. Even people who earn too little to owe income tax can file for this credit.16Idaho State Tax Commission. Claim Your Food Tax Credit Even If You Dont Earn Enough to File Income Taxes17State Tax Commission. Idaho Food Tax Credit
  • Kansas. Even after eliminating its state grocery tax, Kansas still offers a food sales tax credit of $125 per qualifying exemption to help offset local food taxes. You must be a Kansas resident all year with federal adjusted gross income of $30,615 or less, and you must also be 55 or older, blind, disabled, or have a dependent child under 18. The credit is nonrefundable.18Kansas Department of Revenue. Food Sales Tax Credit
  • Oklahoma. The Sales Tax Relief Credit is $40 per qualified exemption. Single filers and couples with no dependents need gross household income of $20,000 or less. Families with dependents and seniors 65 and older can qualify with income up to $50,000.19Legal Information Institute. Oklahoma Administrative Code 710-50-15-96 – Sales Tax Relief Credit

Claiming any of these requires filing a state return, so residents who don’t file often miss the credit even when they qualify.

What Actually Counts as a Taxable Grocery

Even in states that exempt groceries, plenty of food-adjacent items stay fully taxable. The lines matter because they change what you pay at checkout.

Prepared Food

Almost every state that exempts groceries still taxes prepared food at the full sales tax rate. The general rule: food sold ready to eat, heated by the seller, or handed to you with utensils counts as prepared.20Tennessee Department of Revenue. SUT-13 – Sales and Use Tax Rates Overview A rotisserie chicken from the deli is prepared; a raw chicken from the meat case is a grocery. Food that still needs cooking at home is generally not prepared even if the seller cut or repackaged it.21Streamlined Sales Tax Governing Board. AM14002 – Foods Requiring Additional Cooking or Baking Definition Prepared Food

Candy and Soft Drinks

Many states pull candy and soft drinks out of the grocery exemption and tax them at the full rate. Under the Streamlined Sales Tax Agreement definitions used by most states, soft drinks are sweetened nonalcoholic beverages but exclude drinks with milk products, soy-based substitutes, or more than 50% fruit or vegetable juice.22Streamlined Sales Tax Governing Board, Inc. Food Definition Issues Sweetened iced tea is a soft drink; orange juice is not.

Water and Dietary Supplements

Plain bottled water is generally exempt where groceries are exempt. Flavored water, sweetened sparkling water, and sports drinks usually get taxed because added sweeteners push them into the soft drink category. Powdered drink mixes usually escape the soft drink label because they aren’t sold as liquid. Dietary supplements are handled inconsistently: some states treat them as food, some as general taxable merchandise, some in their own category, and the product’s label (Supplement Facts vs. Nutrition Facts) often decides.

SNAP Purchases Are Never Taxed

None of the state or local grocery taxes above apply to food bought with SNAP benefits. Federal regulation bars states from collecting sales tax on SNAP purchases, and a state that allowed it could lose its ability to run the program.23eCFR. 7 CFR 272.1 – General Terms and Conditions WIC purchases get the same practical result. Grocery taxes only hit purchases made with cash, debit, credit, or other non-benefit payment.