13 U.S. States That Still Tax Groceries (And Why It Matters to You)
According to the U.S. Bureau of Labor Statistics, the average cost of groceries in the American Household is about $475 per month. Americans spend an average of 13% of their income on groceries. For many people, groceries are already expensive, but then there’s an additional expense added to the cart—grocery tax. 32 U.S. states have done away with this charge, but a few have been sticking it to consumers.
Thirteen states still have a sales tax on groceries at an average rate of 4%. Mississippi has the highest at 7%, and Missouri has the lowest at 1%. Finding out which states still tax groceries can help you educate others on the issue and advocate for change. Here are the 13 U.S. states that still tax groceries.
Alabama
Grocery taxes are one of the few things that Alabama won’t avoid. The full state sales tax rate of 3% applies to groceries, a drop from 4% in September 2023.
This tax hurts especially for families trying to make ends meet in a state with low average incomes.
Utah
Utah’s grocery tax rate is as low as 1.75%, but local taxes can raise the total. The local sales tax rate is 1.25 percent.
It costs the average person in Utah about $259 monthly to shop for groceries.
Virginia
The average a person pays for groceries in Virginia is about $298 each month, a little less than the national average.
Groceries are taxed at 1.5% less than the general rate plus a local option sales tax of 1%. It’s better than some, but it’s an unwelcome bill on your tab.
Arkansas
In Arkansas, groceries are taxed at a reduced rate of 0.125%, but don’t get excited yet. This could grow due to local sales tax, which may be a budget buster for locals.
Arkansas has made great strides in lowering the grocery tax rate, which is now one of the lowest in the country.
Tennessee
Tennessee taxes groceries at a reduced rate of 4 percent, along with potential local taxes. Cities like Cleveland, Memphis, Johnson City, and Kingsport have additional local sales taxes of up to 2.75%.
Local officials have been debating the benefits of revenue versus public discontent.
Hawaii
For a family of four, grocery shopping in Hawaii will cost an average of $1169 per month. All the products are imported from the mainland, which makes groceries more expensive in Hawaii.
Groceries are taxed along with Hawaii’s general excise tax, which adds 4 percent to your basket and can be over 4.5 percent in some counties.
Idaho
Idaho taxes groceries at the full state rate of 6%, but there is a grocery tax credit, which is supposed to reduce some of this burden. Only some qualify, so don’t spend your refund all at once.
You can claim the credit, about $120 per person per year, by filling out state tax income taxes.
Missouri
In Missouri, groceries are taxed at a reduced rate of 1.225%, but local taxes can increase this rate, which varies depending on where you go shopping.
However, prepared foods and meals sold at restaurants are taxed at a total state tax rate of 4.225%.
Oklahoma
A family of four in Oklahoma spends an average of $773 monthly on groceries and $9,223 yearly. It is relatively lower than in most other States in the U.S.
Up to 1% of groceries could be charged local taxes in addition to the full state sales tax of 4.5% enforced in Oklahoma.
South Dakota
South Dakota has a full state sales tax of 4.2% on groceries. This tax hurts especially those who are watching their spending.
This tax rate was reduced from 4.5% in January 2023. In some areas, an additional local sales tax can increase.
Illinois
The state sales tax on groceries in Illinois is 1%, but local jurisdictions can add their own rates. That’s shown in Chicago, where people love their deep-dish pizza and local sales taxes combined, giving you a higher total tax rate.
Illinois is expected to phase out the state grocery tax beginning 1st January 2026.
Kansas
A total tax rate of 6.5% took a big bite out of Kansas’s grocery budget. In 2023, the tax rate was cut to 4% and 2% in 2024.
In this state, where many are urging the elimination of the tax, it is a hot topic. In 2025, it is projected that the state grocery tax will be completely off the books.
Mississippi
Sales tax revenue is hugely important in helping states and local governments function. The state is heavy in the grocery tax ring, with a total grocery tax rate of 7%.
This is not a welcome issue for residents. In fact, some local areas even add an additional local sales tax of up to 1%, for a total of 8%.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
10 States Where Americans Struggle With the Most Tax Burden
10 States Where Americans Struggle With the Most Tax Burden
15 Best Countrıes to Vısıt in Afrıca
15 Best Countrıes to Vısıt in Afrıca
18 of the Most Dangerous Small Towns in America
18 of the Most Dangerous Small Towns in America
