- Sales tax on grocery food varies across states
- Some states classify certain products differently, such as Twix bars being classified as cookies
- Many states exempt or partially exempt grocery food from sales tax
- Alabama and Tennessee have been decreasing their sales tax on food
- Georgia, North Carolina, and Tennessee participate in the Streamlined Sales Tax program
- Georgia exempts grocery food, including candy, bottled water, and soft drinks, from the state rate
- North Carolina imposes a reduced state rate of 2% on food and food ingredients
- Tennessee imposes a reduced state rate of 4% on food and food ingredients, but candy, soft drinks, and bottled water are subject to full rates
- Different states have different approaches to taxing food, with Georgia including soft drinks in the reduced-rate category.
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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