Grocery Tax by State in 2026: Is There Sales Tax on Food?

Is there a tax on food? Determine grocery sales tax by state | TaxHero

Understanding the 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., sales taxes on groceries vary. Some states fully exempt grocery items, while others charge full or reduced rates. As of April 2026, 13 states still impose a statewide sales tax on groceries.

This guide will walk you through different food categories and state-by-state grocery tax guidelines.

What Counts as Grocery Food?

When states talk about “groceries,” they typically refer to non-prepared food intended for home consumption. Most states now follow the Streamlined Sales Tax (SST) definitions to determine what is exempt:

Grocery Staples: Unprepared fruits, vegetables, meats, grains, and dairy. Most states exempt these, but some exclude “luxury” items like bottled water or soda.
Candy & Soft Drinks: Candy is a preparation of sugar, honey, or other natural or artificial sweeteners, combined with chocolate, fruits, nuts, or other ingredients or flavorings, in the form of bars, drops, or pieces.
Under SST rules, if a product contains flour or requires refrigeration, it may be classified as “food” (exempt). If it is a sugar-based confection without flour, it is “candy” (taxable).
Prepared Food: Ready for immediate consumption (hot meals, sandwiches).
- The 80/80 Rule: In states like CA and VA, if a business derives more than 80% of its revenue from food sales and more than 80% of those items are “ready-to-eat,” all items may be subject to tax.

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 (2026)

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.

Of the 45 states that impose a sales tax, 13 impose a 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	2%	–	In accordance with Act 2025-305, the state sales and use tax rate on food was reduced to 2% effective September 1, 2025.
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	No	n/a	–	Arkansas has officially eliminated the state sales tax on food and groceries as of January 1, 2026. Although the state sales tax has been eliminated, local taxes remain unaffected.
California	No	n/a	–	Standard groceries exempt; 80/80 Rule applies to sales of food products sold in a form suitable for consumption on the seller’s premises.
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%	–	Idaho residents can claim a credit (approx. $155 per person in 2026) on their income tax to offset the 6% they paid at the store.
Illinois	No (State) Yes (Local)	6.25%	–	Illinois has officially eliminated the state sales tax on food and groceries as of January 1, 2026. Although the state sales tax has been eliminated, municipalities and counties may still impose a 1% local grocery sales tax. Also, the Regional Transportation Authority Tax (RTA) of 1% remains unaffected by the state repeal.
Indiana	No	n/a	–	Starting January 1, 2025, businesses that receive 75% of their total sales from prepared food can now apply for a 50% sales tax exemption on their electric meter without a utility check.
Iowa	No	n/a	–	Food and food ingredients are exempt from Iowa sales tax. However, the following items sold for human consumption are taxable: Alcoholic beverages Candy Dietary supplements Food sold through vending machines Prepared food Soft drinks Tobacco
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%	5%	Effective July 1, 2025, Mississippi’s grocery tax dropped from 7% to 5%.
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	n/a	–	Oklahoma has officially eliminated the state sales tax on food and groceries, effective 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, 2026.
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 where the food is sold.
Rhode Island	No	n/a	–	Most grocery food items intended for home consumption are exempt from the state’s 7% sales tax. This exemption generally applies to staples, produce, meats, and dairy. However, prepared foods, hot foods, candy, soft drinks, and alcoholic beverages are taxable.
South Carolina	No	n/a	–	Unprepared food purchased with federal food stamps is exempt from state sales tax but may still be subject to local sales tax.
South Dakota	Yes	4.20%	–	A four-year tax holiday reduces South Dakota’s sales tax rate, including the tax on groceries, from 4.5% to 4.2%. As of 2026, the sales tax on groceries remains at 4.2%.
Tennessee	Yes	7%	4%	The sale of food and grocery items is taxable in Tennessee at a reduced rate of 4%. However, lawmakers are considering legislation to eliminate the grocery tax entirely. While not yet in effect as of 2026, this potential change could significantly affect statewide food taxation.
Texas	No	n/a	–	Most foods meant for human consumption are not subject to sales tax. However, certain types of food and drinks, including prepared meals, candy, soft drinks, and alcoholic beverages, do not qualify for this tax exemption and are therefore taxable.
Utah	Yes	3%	–	There’s a reduced 3% sales tax: 1.75% state, 1% local, and 0.25% county tax on groceries, while sales of prepared food are taxed at the full rate.
Vermont	No	n/a	–	Food, food products, and beverages are exempt from Vermont sales tax, except for soft drinks.
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 (2026)

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

Arkansas and Illinois are the latest states to eliminate state-level grocery taxes (effective Jan 1, 2026), joining Kansas (2025).
In states like Georgia, Alabama, and Colorado, even if the state rate is low or $0, local jurisdictions can add 3-5% in additional taxes.
With recent changes, Idaho (6%) now holds the highest state-level grocery tax in the U.S.
Many states tax snacks but exempt “food.” If your product contains flour, it is often legally “food” (exempt) rather than “candy” (taxable).

State-Specific Grocery Tax Deep Dives

California: The 80/80 Rule

In California, most groceries are exempt. However, everything that you sell becomes taxable if your business meets these criteria:

80% of your revenue comes from food
80% of that food is sold in a ready-to-eat state

Illinois: The New 1% Local Mandate

While the state of Illinois officially eliminated its 1% grocery tax on January 1, 2026, it simultaneously empowered municipalities to establish their own local grocery taxes. In Chicago and most major suburbs, you will likely still see a 1% local grocery tax applied at checkout.

Texas: The Snack vs. Food Distinction

Texas does not tax groceries, but it is very strict about “snack foods.” If you sell chips, popcorn, or candy in individual-sized portions (less than 6 oz), they are taxable. If you sell the “Family Size” version of the same product, it is often exempt.

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—and they change often. To stay compliant, you must:

Map your products to SST codes: Ensure you aren’t charging tax on a “snack” that qualifies as “food.”
Monitor Nexus: Selling in high-volume states like Illinois or California requires tracking local tax changes.
Automate: Manual tracking is a recipe for an audit.

Frequently Asked Questions

1. What state has the highest tax on groceries?+

As of 2026, Idaho has the highest base rate for grocery tax at 6%, followed by Mississippi at 5% and Utah at 4.85%

2. Is grocery food taxed in the US?+

Most U.S. states do not impose a statewide tax on groceries. However, a few states tax groceries either at the full state sales tax rate or at a reduced rate. In some locations, additional local taxes may still apply.

3. Which US state has the cheapest groceries?+

When comparing grocery prices by location, Texas stands out. In fact, six of the eleven U.S. cities with the lowest grocery costs are located there, making it one of the most affordable states for buying groceries overall.

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 in states
Automate tax collection and remittance across 11,000+ jurisdictions

Navigating the grocery tax by state is essential for any online food seller in 2026. 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.

The Ultimate Guide to Grocery Tax by State