10 States To Move to If You Don’t Want To Pay Taxes on Groceries

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According to the U.S. Department of Agriculture, grocery prices rose by a staggering 23.6% in the United States from 2020 through 2024. That’s over 10% more than the 21.2% increase in overall inflation over the same time period.

But in some states, things are even worse for consumers. While roughly 80% of states have eliminated sales taxes on groceries, 10 still levy taxes of up to 10% on consumers at checkout. Here’s a list of the states still charging grocery taxes in America, along with recent developments aimed at minimizing or eliminating them. Note that in most cases, local taxes may be imposed in addition to the statewide grocery tax.

Alabama

• Current grocery tax: 3%
• Recent reductions: Fell from 4% in 2023
• Future plans: Could drop to 2% if there’s sufficient growth in the state’s Education Trust Fund; some lawmakers are recommending full elimination of the tax

Arkansas

• Current grocery tax: 0.125%, the lowest state-imposed tax currently imposed among those with a tax.
• Recent reductions: N/A
• Future plans: Governor Sarah Huckabee Sanders is working to eliminate the statewide grocery tax

Hawaii

• Current grocery tax: 4%
• Recent reductions: N/A, but state offers $220 tax credit for households with AGIs of $60,000 or less
• Future plans: N/A

Idaho

• Current grocery tax: 6%
• Recent reductions: N/A, but state offers tax credits of $120 per taxpayer, spouse and qualifying dependent
• Future plans: N/A

Illinois

• Current grocery tax: 1%
• Recent reductions: N/A
• Future plans: Will be eliminated by Jan. 1, 2026

Mississippi

• Current grocery tax: 7%
• Recent reductions: N/A
• Future plans: Will be reduced to 2.5% over several years

Missouri

• Current grocery tax: 1.225%
• Recent reductions: N/A
• Future plans: Legislation has been proposed to exempt food from the sales tax

South Dakota

• Current grocery tax: 4.2%
• Recent reductions: Reduced from 4.5% in 2023
• Future plans: Residents rejected a measure to exempt groceries from the sales tax, which is slated to increase to 4.5% on July 1, 2027

Tennessee

• Current grocery tax: 4%
• Recent reductions: N/A
• Future plans: Legislation has been proposed to eliminate the sales tax on groceries

Utah

• Current grocery tax: 3%, broken down as a 1.75% state tax and a 1.25% local tax
• Recent reductions: N/A
• Future plans: An amendment to eliminate the state sales tax on groceries was tossed out by a judge in Nov. 2024 for procedural reasons

States That Recently Eliminated Their Grocery Taxes

Kansas, Oklahoma, and Virginia are the three states that have stopped taxing groceries relatively recently. Kansas, for example, has a 2% grocery tax that elapsed on Jan. 1, 2025. However, city and local taxes may still apply. Oklahoma dropped its 4.5% grocery tax on Aug. 29, 2024.

According to AARP, however, local taxes of as much as 5% may still apply. In Virginia, a statewide grocery tax of 1.5% was eliminated on Jan. 1, 2023, but local governments still retain the option to charge a 1% tax. 

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