The Ultimate Guide to Grocery Tax by State

Understanding grocery tax by state is essential if you sell groceries, snacks, or beverages online. Sales tax laws vary widely across the U.S., and whether your food products are taxed depends on the state—and the type of food you’re selling.

Across the U.S., the sales tax on groceries varies. Some states fully exempt grocery items, while others charge full or reduced rates. As of April 2025, 13 states still impose some form of statewide sales tax on grocery items. This guide will walk you through different food categories and guidelines on grocery tax by state.

 

What Counts as Grocery Food?

When states talk about “groceries,” they typically refer to non-prepared food intended for home consumption. Here’s a breakdown of commonly taxed categories:

Grocery food

Most states do not tax these items, but some still do. These are typical items found in grocery or convenience stores:

• Fruits, vegetables, meats, grains, dairy
• Canned goods, bottled water, packaged snacks
• Non-carbonated drinks, baking ingredients

Prepackaged food

Some states tax these differently from unprocessed groceries. These are processed items ready for sale but not meant for immediate consumption:

• Frozen meals
• Bottled beverages
• Packaged sandwiches or shelf-stable meals

Prepared food

Prepared food is ready for immediate consumption and includes:

• Hot meals, salads from a bar, heated sandwiches

• Items from delis, bakeries, or restaurants

Note: This guide does not cover restaurant sales tax since it’s outside the scope of grocery ecommerce.

 

Grocery Tax by State (2025)

The table below outlines the taxability of non-prepared grocery food by state. Most states that exempt grocery food exclude soft drinks, candy, and confections. States also charge sales tax for prepared food in restaurants and grocery stores as it is a meal.

Out of 45 states that impose some sales tax, 13 impose statewide sales tax on groceries.

Note: Sales tax regulations keep changing frequently. Bookmark this table to keep yourself updated about the latest developments regarding sales tax on grocery food.

STATE ARE GROCERIES TAXABLE?  SALES TAX RATE REDUCED GROCERY RATE  EXEMPTIONS (IF ANY) Alabama Yes 4% 3% In accordance with Act 2023-554, the state sales and use tax rates on food was reduced effective September 1, 2023. Alaska not applicable 0% – None. There is no sales tax in this state. Arizona No n/a – Some grocery food purchases may be subject to local sales tax. Arkansas Yes 6.50% 0.125% Food and food ingredients are taxed at a reduced rate of 0.125% plus the applicable local rate. California No n/a – Certain meals are taxed. Colorado No n/a – Carbonated water, chewing gum, cold sandwiches, plants to grow food, candy, drinks, and beverages served in unsealed cups. Although there is no state-imposed sales tax on grocery food, cities and counties may levy local sales taxes at their discretion (e.g., Denver). Connecticut No n/a – Delaware  not applicable 0% – None. There is no sales tax in this state. Florida No n/a –  Georgia No n/a – Hawaii Yes 4% – Food purchased with federal food coupons or vouchers is exempt. Idaho Yes 6% – You can claim an average $100 income tax credit for purchasing grocery items in this state if you are a resident of Idaho. Illinois Yes 6.25% 1% Food consumed off the premises until July 1, 2023, is exempt. After July 1, 2023, the tax rate on items will go back to 1%. Indiana No n/a – Starting January 1, 2025, businesses that receive 75% of their total sales from sales of prepared food can now apply for a 50% sales tax exemption on their electric meter without a need for a utility check. Iowa No n/a – Kansas Yes 6.50% 0% Kansas has officially eliminated the state sales tax on food and groceries as of January 1, 2025. Although the state sales tax has been eliminated, local taxes remain unaffected. Kentucky No n/a – Tobacco, alcoholic beverages, candy, prepared food, dietary supplements, soft drinks, and food sold through vending machines are not exempt. Louisiana No n/a – Food sold for preparation and consumption at home is exempt. Maine No n/a – The exemption is limited to “grocery staples”(i.e., vegetables, meats, fish, dairy, bread, canned and boxed food products). Maryland Yes 6% – Sales of food to patients in a hospital, on vehicles operating in interstate commerce, etc., may be exempt Massachusetts No n/a – Michigan No n/a – Food or salad bars, bottled or canned beverages, candy bars, cookies, and potato chips are not exempt. Minnesota No n/a – Mississippi Yes 7% – Only state sales tax and no local sales tax on groceries. Missouri Yes 4.225% 1.225% Montana  not applicable 0% – None. There is no sales tax in this state. Nebraska No n/a – Nevada No n/a – New Hampshire  not applicable 0% – None. There is no sales tax in this state. New Jersey No n/a – New Mexico No n/a – New York No n/a – Carbonated beverages, sandwiches, confectionery, and candy are not exempt. North Carolina No n/a – Sales of food are subject to local taxes. North Dakota No n/a – Ohio No n/a – Oklahoma No 4.50% – Oklahoma has officially eliminated the state sales tax on food and groceries as of August 29, 2024. For a detailed breakdown of what’s exempt and what’s not, check out the comprehensive list here. Although the state sales tax has been eliminated, local taxes remain unaffected. Residents may still face higher grocery taxes in the future if counties or cities decide to increase their local sales tax rates. However, under the new law, changes will not take effect until after July 1, 2025. Oregon  not applicable 0% – None. There is no sales tax in this state. Pennsylvania No n/a – It depends on the type of food and the location of where the food is sold. Rhode Island No n/a – South Carolina No n/a – Unprepared food bought with federal food stamps is exempt from state sales tax but might still be subject to local sales tax. South Dakota Yes 4.20% – Tennessee Yes 7% 4% Grocery sales tax holiday (August 2023 – October 2023) Texas No n/a – Utah Yes 4.85% 1.75% Taxed at a reduced rate. Utah is looking to remove state sales and use tax for food and food ingredients beginning January 1, 2025, if approved by voters. Vermont No n/a – Virginia Yes 4.30% 1% Seeds & plants used to grow food, alcoholic beverages, and tobacco are not exempt. Washington No n/a – West Virginia No n/a – Wisconsin No n/a – Some food snacks are excluded from this exemption. Wyoming No n/a –

*Local taxes may still apply in many states even when groceries are exempt from state-level tax.

 

Key Insights: States with No Food Tax (2025)

Here are some quick takeaways from the “grocery tax by states” table.

• 43 states and the District of Columbia impose some form of sales tax.
• 33 states + D.C. do not impose a state-level sales tax on grocery food items.
• In many exempt states like Arizona, Colorado, Georgia, Kansas, Louisiana, North Carolina, and South Carolina, groceries are exempt at the state level but may still be taxed locally, depending on the city or county.
• 4 states — Hawaii, Idaho, Mississippi, and South Dakota — continue to tax groceries at the full state sales tax rate.
• 5 states — Alabama, Arkansas, Missouri, Tennessee, and Utah — apply a reduced state sales tax rate on groceries.
• Oklahoma and Kansas eliminated their state-level grocery sales tax in August 2024 and January 2025, respectively.
• Hawaii, Idaho, and Utah offer tax credits or rebates to reduce the impact on low-income households.
• Mississippi currently has the highest state grocery tax rate at 7%, with no available credits or exemptions.
• Arkansas applies the lowest effective grocery sales tax rate at just 0.125%.

What This Means for Your Ecommerce/CPG Food Business

If you’re selling food, beverages, or snacks online, the rules on food tax vary wildly across the country—and they change often. You need to consider:

• Where your customers are located
• Whether you sell via marketplace or direct
• Whether your product qualifies as exempt grocery

TaxHero Makes Grocery Sales Tax Easy

Staying compliant with sales tax on food is complicated, but TaxHero simplifies it all for you. We help ecommerce and CPG brand sellers:

• Understand state-by-state tax rules
• Apply correct tax rates to food items
• Stay ahead of legislative changes
• Automate tax collection and remittance

Navigating grocery tax by state is essential for any online food seller in 2025. By understanding which items are taxable and in which states, you can better price your products, avoid penalties, and improve customer experience. Book a discovery call and let our experts guide you.