States That Don’t Tax Food: Reduced Rates and Local Taxes

Most states don’t charge sales tax on groceries. As of 2026, the grocery tax by state breaks down like this: more than 40 states plus the District of Columbia either exempt unprepared food from state sales tax or have no statewide sales tax at all. Three states still apply their full rate to groceries, five apply a reduced rate, and local taxes can add a charge in places where the state rate is zero.1Tax Foundation. State and Local Sales Tax Rates, 2026

States That Don’t Tax Groceries

Five states have no general sales tax at all, so groceries carry no state charge: Alaska, Delaware, Montana, New Hampshire, and Oregon.1Tax Foundation. State and Local Sales Tax Rates, 2026 Alaska is the one exception where local governments can impose their own sales tax, so some Alaska boroughs and cities still charge on groceries.

Another 37 states fully exempt unprepared groceries from their state sales tax:

  • Arizona
  • Arkansas (effective January 1, 2026)
  • California
  • Colorado
  • Connecticut
  • Florida
  • Georgia
  • Illinois (effective January 1, 2026)
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Nebraska
  • Nevada
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Texas
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

Several of these exemptions are new. Kansas finished phasing out its 6.5% grocery tax on January 1, 2025.2Kansas Department of Revenue. Pub. KS-1223 Food Sales Tax Rate Reduction Oklahoma ended its 4.5% grocery tax on August 29, 2024.3Oklahoma Senate. Woods Celebrates Elimination of State Grocery Tax Arkansas dropped its last 0.125% on January 1, 2026, and Illinois eliminated its 1% state grocery tax on the same date, though the state simultaneously authorized cities and counties to impose their own 1% local grocery tax by ordinance.4Illinois Department of Revenue. Informational Bulletin FY 2026-03, Illinois Grocery Tax Changes Effective January 1, 2026

Virginia is a special case. The state removed its 1.5% grocery tax on January 1, 2023, but a 1% local option tax on groceries still applies everywhere in Virginia.5Virginia Department of Taxation. Grocery Tax So Virginia shoppers still see a small charge at checkout despite the state-level exemption.

States That Tax Groceries at a Reduced Rate

Five states tax groceries but at a lower rate than their general sales tax:

The direction of movement in this group is all one way. Every state on the list has either cut its grocery tax recently or is facing active pressure to do so.

States That Tax Groceries at the Full Rate

Only three states apply the full state rate to groceries, and two of them offer income tax credits to offset the cost.

South Dakota taxes groceries at its full 4.2% state sales tax rate with no offsetting credit.9South Dakota Department of Revenue. Sales and Use Tax Guide, January 2026 A 2024 ballot initiative to exempt groceries failed. Cities can add up to 2% more.

Idaho charges its full 6% state sales tax on groceries but offers a food tax credit on the state income tax return worth $155 per person, or up to $250 if you submit receipts showing the actual sales tax paid on food.10Idaho State Tax Commission. Idaho Food Tax Credit You can claim the credit even if your income is too low to require filing a return.

Hawaii applies its 4% general excise tax to nearly every transaction, groceries included. The tax is technically imposed on the business, but retailers pass it through.11Department of Taxation. General Excise Tax (GET) Information County surcharges can push the effective rate to 4.5%. Hawaii offers a Food/Excise Tax Credit for low- and middle-income residents worth up to $220 per person for those earning under $15,000, phasing out entirely at $60,000 for most filing statuses.12State of Hawaii, Department of Taxation. Hawaii Food/Excise Tax Credit

Local Taxes Can Add Up Where the State Rate Is Zero

A state exemption doesn’t always mean tax-free groceries. Many states let counties, cities, and special taxing districts impose their own sales tax on food.

Georgia charges 0% at the state level, but the average local sales tax rate across Georgia counties is about 3.49%.1Tax Foundation. State and Local Sales Tax Rates, 2026 Colorado, Louisiana, and Illinois exempt groceries at the state level but allow local taxes running from 1% to over 4% depending on the jurisdiction. When Kansas and Oklahoma eliminated their state grocery taxes, local taxes stayed in place, so shoppers in some Oklahoma cities still pay over 5% on food.

Special taxing districts within a city can push rates higher still. The only reliable way to know your actual grocery tax is to look up the combined state-plus-local rate for your address on your state revenue department’s website.

What Actually Counts as a Grocery

Even where the state “exempts groceries,” the exemption is narrower than the store aisle. It covers unprepared food meant to be taken home and cooked or eaten later: meat, produce, dairy, bread, canned goods, staples. Several categories fall outside that definition.

Prepared Food

Prepared food is taxable in almost every state, including the ones with broad grocery exemptions. That covers food sold hot, food sold with utensils provided by the seller, and food where the seller has combined two or more ingredients into a ready-to-eat item like a deli sandwich or a premade salad. A rotisserie chicken is taxable; a raw whole chicken is not.

Candy, Soft Drinks, and Supplements

Many states carve candy and soft drinks out of the food definition. Under the framework most states use, candy is a product made mostly of sweeteners combined with chocolate, fruit, or nuts and does not contain flour. That means a Kit Kat or a Twix (which contain flour) often escapes the candy tax while a plain chocolate bar does not. Soft drinks generally means non-alcoholic beverages with added sweeteners, which catches soda and sweet tea but not 100% juice or milk. Dietary supplements and vitamins are treated as non-food and taxed at the full rate in most states.

Household and Personal Care

Paper towels, toilet paper, cleaning supplies, soap, and similar items sit in grocery stores but aren’t food under any state’s exemption, so you pay the full sales tax rate. A few states have created separate exemptions for diapers or menstrual products, but those live outside grocery tax policy and vary by state.

SNAP and WIC Purchases Are Always Tax-Free

Whatever your state charges on groceries, purchases made with federal nutrition benefits are exempt from all state and local sales tax. Federal rules prohibit states from collecting sales tax on items bought with SNAP benefits.13Food and Nutrition Service, U.S. Department of Agriculture. SNAP Retailer Notice – Sales Tax, Fees, and Refunds The same rule applies to WIC: vendors cannot charge sales tax on authorized foods bought with WIC benefits.14eCFR. Part 246 Special Supplemental Nutrition Program for Women, Infants and Children

When a transaction splits between SNAP and another payment method, the store should charge sales tax only on the non-SNAP portion. If a retailer charges you sales tax on a SNAP purchase, that’s a federal violation, not a store error.

If You’re Charged Tax You Shouldn’t Have Been

With so many grocery tax rules changing in 2025 and 2026, register errors are more likely than usual. Scanning systems need updates, and newly exempt items sometimes slip through. If you spot tax on something you believe is exempt, ask the store for a refund; most retailers will fix it on the spot.

If the store won’t correct it, the recovery process depends on the state. The retailer remitted the tax, so you generally need the retailer’s cooperation to bring the tax authority in. Some states let you file a refund claim directly with the revenue department if the seller doesn’t act within a set window. Keep your receipt either way.