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Which Grocery Items Are Taxed? Understanding U.S. Food Sales Tax by State (2025 Update)

  • 11 states still tax groceries, though rates and rules vary and are often reduced or changing.
  • Most homecooked holiday foods are sales-tax free, but items like alcohol and prepared platters are usually taxed.
  • Grocery sales tax rules change frequently due to political debates over consumer relief versus state revenue needs.
  • Eliminating grocery taxes is politically complex and often provides limited relief to lower and middle-income taxpayers.
  • More states may consider reducing or eliminating grocery sales taxes in the future, making compliance challenging for businesses.

Source: taxconnex.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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