Why You’ll Still Pay Oklahoma Grocery Tax
Oklahoma is eliminating its state grocery tax, but that doesn’t mean groceries will be tax-free. Here's what you need to know.


Oklahoma is finally eliminating its 4.5% state tax on groceries, an initiative that took two years to achieve. State lawmakers estimate the tax cut will save each family an average of $648 per year. However, other estimates range from savings of $125 a year for a family earning $40,000 to high-earning households saving an average of $408 per year.
Gov. Kevin Stitt who signed House Bill 1955 into law earlier this year, expressed pride in the bipartisan effort. "Oklahomans have waited for this day for years, and I'm proud to be the Governor that Oklahomans chose to eliminate the state portion of the grocery tax."
However, while the grocery tax cut will save Oklahomans money, shoppers will still pay sales tax when they visit the grocery store, some more than others. That’s because not all food items are covered under the Oklahoma tax cut, and local taxes can vary dramatically depending on which part of the state you shop in.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The grocery tax cuts become effective on August 29, 2024. So, here's more of what you need to know.
Oklahoma grocery tax cut
Oklahoma’s grocery tax cut becomes effective Thursday, August 29, 2024. So, families should see a change in their grocery bills soon.
But it's important to note that the tax cut only applies to the state’s 4.5% portion of sales tax. So, Oklahomans will still pay local sales tax on all types of groceries, which can reach as high as 7% in some areas of the state. That means some residents will still pay $70 in sales taxes for every $1,000 spent on groceries once the law takes effect.
Because the tax cut doesn’t apply to local taxes, residents might pay even more grocery taxes in the future, if counties and cities raise their sales tax rates. However, the new law prohibits them from doing so until at least July 1, 2025.
What groceries will be exempt in Oklahoma?
Not all grocery items will be exempt from Oklahoma’s 4.5% state sales tax.
- Ready-to-eat prepared foods will not be tax-exempt.
- Oklahoma’s 4.5% state tax will still apply to grocery deli items.
- Heated foods will still be taxed at the current rate.
So, families who routinely purchase these types of items might not notice savings as significant as families who don’t.
Oklahoma income tax cut
Oklahoma was one of only about a dozen states that still tax groceries. Now that the state’s grocery tax is eliminated, Gov. Stitt is turning his attention to eliminating Oklahoma’s income tax. Nearby states have already taken steps to reduce income taxes, and bordering state, Texas, imposes no individual income taxes.
When speaking of the state’s income tax, Stitt said, “We think we need to put Oklahoma on a path to zero” and that if Oklahoma tax cuts don’t keep up with other states, it will get “left behind.”
Since passing the grocery tax bill, Oklahoma House lawmakers advanced two bills that would cut state income taxes, to eliminate them over time.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.
-
New Tax Rules: Income the IRS Won’t Touch in 2025
Income Taxes From financial gifts to Roth withdrawal rules, here’s what income stays tax-free under the new Trump 2025 tax bill, and some information on what’s changed.
-
Three Popular Tax Breaks Are Gone for Good in 2026
Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. Plus, high-income earners could get hit by a 'surprise' tax bill.
-
Tax Brackets 2025 Quiz: How Much Do You Know?
Quiz Test your knowledge of IRS rules that impact how much money you keep in your wallet.
-
Retirees Face a Growing Capital Gains Tax Trap: What's Next?
Home Sales A changing housing market and unchanged IRS exclusion amounts can add up to a headache for many homeowners. Will Congress offer a fix?
-
New York Inflation Refund Checks Are Coming Soon: What to Know Now
Tax Relief Inflation relief checks are on the way for over 8 million New York taxpayers. Here's a full breakdown of who gets a payment and when you may expect yours.
-
IRS Phasing Out Paper Checks: What Happens After September 30?
Tax Changes Avoid delays when IRS tax refunds and Social Security paper checks are cut off. Here’s what to know.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)
State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
The Final Countdown for Retirees with Investment Income
Retirement Tax Don’t assume Social Security withholding is enough. Some retirement income may require a quarterly estimated tax payment by the September 15 deadline.