10 States Where You Pay Taxes on Groceries

Young woman reading nutrition label while buying diary product in supermarket. stock photo
Drazen Zigic / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

In 2024, Oklahoma eliminated its sales tax on food and food ingredients, according to Oklahoma Tax Commission. In 2025, Kansas followed suit, per the Kansas Office of the Governor. Both policy shifts were part of a years-long pattern.

Kiplinger reported that the states have trended toward ending their sales tax for grocery purchases, reducing it or offsetting it with tax credits since 2020, when the Center on Budget and Policy Priorities urged more states to join the 33 (including Washington, D.C.) that gave their residents a tax-free supermarket experience.  

However, the below 10 states still levy at least some sales tax on grocery purchases. 

Alabama

Alabama recently passed legislation that lowered its sales tax on groceries from 3% to 2%, according to the state’s official website. It’s scheduled to take effect on Sept. 1.

Arkansas

In April, Arkansas Gov. Sarah Huckabee signed a bill that eliminated the state’s 0.125% tax on grocery sales, per its official website. The Grocery Tax Relief Act goes into effect on Jan. 1, 2026. 

Hawaii

According to Kintsugi, Hawaii doesn’t levy a direct sales tax, but its general excise tax adds 4% to the cost of most services and products, including groceries — and some counties tack on an additional 0.5% surcharge. However, a tax credit tied to income offsets some of the burden for qualified residents.

Today's Top Offers

Idaho

Idaho levies its full 6% sales tax on groceries, one of the highest in the nation, according to Idaho Education News. However, a tax credit averaging $120 per person allows individuals to enjoy tax-free food shopping on $2,000 worth of purchases, per Idaho State Tax Commission.

Illinois

In 2024, Illinois House Bill 3144 ended the state’s 1% grocery tax, which was already markedly lower than its 6.5% general sales tax, per the Illinois General Assembly. The repeal takes effect on Jan. 1, 2026, but the legislation allows counties to impose their own 1% tax on grocery receipts, according to Avalara.

Mississippi

Mississippi residents recently got some relief from paying one of the highest supermarket surcharges in America when lawmakers lowered the state’s grocery tax from 7% to a still-bruising 5%, per the Mississippi Department of Revenue. The City of Moss Point, Mississippi’s website states the reduction went into effect on July 1. 

Missouri

Missouri taxes groceries at a reduced rate of 1.225%, 3% lower than its 4.225% general sales tax, according to Zamp. However, the reduced rate applies only to all SNAP-eligible purchases.

South Dakota

A ballot bill called Measure 28 would have exempted grocery purchases from South Dakota’s 4.2% sales tax, which is slated to return to 4.5% in 2027, as reported by South Dakota Public Broadcasting (SDPB). However, the state’s official website shows voters overwhelmingly rejected the measure on Nov. 6, 2024. 

Tennessee

Depending on where they live, some Tennesseeans pay one of the highest grocery taxes in the nation, according to the state’s official website. Although, per Wate 6 News, the state recently lowered it by 20% from 5% to 4%, local taxes can push it up to the 7% that Mississipians paid until recently — or even more. 

Today's Top Offers

Utah

Utah levies a combined 3% sales tax on groceries, per Hands Off Sales Tax (HOST). It’s the combination of a 1.75% state sales tax and a 1.25% local tax.

BEFORE YOU GO

See Today's Best
Banking Offers

Looks like you're using an adblocker

Please disable your adblocker to enjoy the optimal web experience and access the quality content you appreciate from GOBankingRates.

  • AdBlock / uBlock / Brave
    1. Click the ad blocker extension icon to the right of the address bar
    2. Disable on this site
    3. Refresh the page
  • Firefox / Edge / DuckDuckGo
    1. Click on the icon to the left of the address bar
    2. Disable Tracking Protection
    3. Refresh the page
  • Ghostery
    1. Click the blue ghost icon to the right of the address bar
    2. Disable Ad-Blocking, Anti-Tracking, and Never-Consent
    3. Refresh the page