State Tax Guide June 2026

Sales Tax on Groceries:
A State-by-State Guide (2026)

You grab a cart, fill it up, head to the checkout — and the total is higher than you expected. Sound familiar? In the US, grocery sales tax is one of the most confusing parts of everyday shopping.

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Some states charge full sales tax on everything in your cart. Others exempt most food. Some charge a reduced rate. A few have rules so complicated that identical products get taxed differently depending on how they're packaged.

This guide breaks down grocery tax rules for all 50 states, so you know exactly what to expect before you reach the checkout.


The Short Answer: It Depends on Your State

Unlike income tax, there's no federal rule on grocery sales tax. Each state sets its own rules — and many counties and cities add their own rates on top. That's why a bag of apples might cost you nothing extra in tax in Virginia but several cents more in Alabama.

Here's what makes it complicated:


State-by-State Grocery Tax Guide

Full Tax States That Fully Tax Groceries

These states apply their full sales tax rate to most grocery items:

State State Rate Notes
Alabama4%Plus local rates up to 7% — some of the highest grocery tax in the US
Hawaii4%Technically a GET (General Excise Tax), applies to groceries
Idaho6%Groceries taxed at full rate; $100 annual rebate credit available
Kansas0% from 2025Eliminated grocery tax January 2025
Mississippi7%Full rate on groceries
Oklahoma4.5%Plus local rates
South Dakota4.5%No exemption for groceries
Tennessee4%Reduced rate (standard is 7%) — still taxed
Utah3%Reduced rate (standard is 6.1%)
West Virginia5%Groceries taxed at full rate

Reduced Rate States With Reduced Grocery Tax Rates

These states tax groceries but at a lower rate than general merchandise:

State Grocery Rate Standard Rate
Arkansas0.125%6.5%
Illinois1%6.25%
Missouri1.225%4.225%
Tennessee4%7%
Utah3%6.1%
Virginia2.5%5.3%

Mostly Exempt States That Exempt Most Groceries

These states exempt most food intended for home consumption from sales tax. However, candy, soda, alcohol, and prepared food are usually still taxable:

State Notes
ArizonaMost unprepared food exempt
CaliforniaMost groceries exempt; candy and soda taxable
ColoradoMost food exempt; some candy and soft drinks taxable
ConnecticutMost groceries exempt; candy, soda, alcohol taxable
FloridaMost food for home consumption exempt
GeorgiaMost unprepared food exempt
IndianaMost food exempt; candy and soft drinks taxable
IowaMost food exempt; candy, soda taxable
KentuckyMost food exempt (since 2023)
LouisianaGroceries generally exempt at state level; local taxes vary
MaineMost food exempt; candy, soda taxable
MarylandMost food exempt
MassachusettsMost food exempt; meals, candy, soda taxable
MichiganMost food exempt
MinnesotaMost food exempt; candy, soft drinks taxable
NebraskaMost food exempt
NevadaMost food exempt
New JerseyMost food exempt
New MexicoMost food exempt
New YorkMost food exempt; candy, soda, prepared food taxable
North CarolinaMost food exempt
North DakotaMost food exempt
OhioMost food exempt; candy, soda taxable
PennsylvaniaMost food exempt; candy, gum, soda taxable
Rhode IslandMost food exempt
South CarolinaMost food exempt
TexasMost food exempt; candy, soda taxable
VermontMost food exempt
WisconsinMost food exempt; candy, soda taxable
WyomingMost food exempt

No Sales Tax States With No Sales Tax At All

These states have no general sales tax, so groceries are never taxed at the state level:

State
Alaska
Delaware
Montana
New Hampshire
Oregon

Note: Alaska has no state sales tax but allows local jurisdictions to charge their own, so some Alaska municipalities do tax groceries.


The Tricky Part: What Counts as "Groceries"?

Even in states that exempt groceries, not everything in your supermarket trolley qualifies. Here's what's commonly taxable even in grocery-exempt states:

Candy and Sweets

Most states define candy as food made primarily from sugar, honey, or sweeteners — with no flour. A chocolate bar is usually taxable. A chocolate chip cookie isn't (because it contains flour).

Soft Drinks and Soda

Beverages sweetened with sugar or artificial sweeteners are taxable in most states. Water, juice, and milk are usually exempt.

Prepared Food

Hot food, food sold ready to eat, or food sold with utensils is taxable in most states — even in grocery-exempt states. That hot rotisserie chicken? Taxable. The raw chicken next to it? Usually exempt.

Alcohol

Always taxable. No state exempts alcohol from sales tax.

Dietary Supplements

Vitamins, protein powders, and supplements are taxable in many states — they're not considered food.


Why This Matters at the Checkout

The average American spends around $5,000 a year on groceries. In a state like Alabama or Mississippi where groceries are taxed at 7–11%, that's $350–$550 a year in grocery tax alone.

But the real problem isn't the annual cost — it's the moment you reach the checkout and the total is higher than you expected. You've already put the items in your cart. You're at the register. You either pay or you have to awkwardly put things back.

That's checkout shock. And it happens because shelf prices in the US never include tax.


How CartClear Fixes This

CartClear is a grocery app that predicts your tax total before you reach the checkout.

Here's how it works:

  1. Set your state — CartClear knows the tax rules for your state
  2. Scan a barcode — the app reads the product and predicts whether it's taxable or exempt
  3. Enter the shelf price — CartClear adds the correct tax automatically
  4. Watch your real total — your running total always shows what you'll actually pay

CartClear's AI predicts tax per product — not just per state. So it knows that the candy bar in your cart is taxable even if most of your groceries aren't.

CartClear

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Frequently Asked Questions

Is food taxed in Texas?

Most unprepared food is exempt from sales tax in Texas. However, candy, soft drinks, and prepared food are taxable. CartClear can predict which items in your Texas grocery shop are taxable.

Are groceries taxed in California?

Most groceries are exempt from sales tax in California. Candy, soda, hot prepared food, and dietary supplements are taxable.

What states have the highest grocery tax?

Alabama, Mississippi, and Tennessee have some of the highest effective grocery tax rates in the US when state and local taxes are combined. Alabama in particular can see combined rates of 9–11% on groceries.

Which states don't tax groceries at all?

Alaska, Delaware, Montana, New Hampshire, and Oregon have no state sales tax. Many other states exempt groceries but still tax candy, soda, and prepared food.

Why do shelf prices not include tax?

US retailers are required to display pre-tax prices. Tax is calculated and added at the point of sale. This is why your total at the checkout is always higher than the sum of the shelf prices.


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