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Most states don’t charge sales tax when you purchase unprepared food from the grocery story.

States with No Sales Tax on Food

California, Colorado, Connecticut, Delaware, Florida, Indiana, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, Wisconsin, Wyoming and the District of Columbia.

States with Reduced Sales Tax on Food

Some states levy sales tax on food but the tax is lower than the general sales tax. Such states include Arkansas, Georgia, Illinois, Missouri, Tennessee, Utah, Virginia, and West Virginia.

States with Sales Tax Credits or Rebates

Five states (i.e. Hawaii, Idaho, Kansas, Oklahoma, South Dakota, and Wyoming) tax food purchases fully but offer tax credits or rebates. These can be claimed by low income households but are generally not enough to compensate fully for their expenses.

States with Sales Tax on Food and no Tax Credits or Rebates

There are only two states that levy the full sales on food purchases without providing any type of tax relief: Alabama and Mississippi.

Local Sales Tax on Food

Just because the state government won’t levy a sales tax on food doesn’t mean you local government won’t do either. This is true in Alaska, Colorado, Louisiana and North Carolina.

Special Cases

States that don’t levy sales tax on unprepared food at grocery stores often don’t charge sales tax on food purchased elsewhere either.

Sandwich Sales

Sandwich places like Subway may or may not charge sales tax depending on how you choose to consume your sandwich. The exact rules on this vary from state to state. But in general, when ordered for take-out, cold sandwiches are not subject to sales tax. When you eat in, however, you are charged sales tax. And when you buy a hot sandwich, you are charged sales tax no matter what. (That’s another reason why a place like Quizno’s, famous for its oven-roasted sandwiches, will always be more expensive than a place that sells cold sandwiches.)

Photo Credit: Simon Shek

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