Food Tax: Which States Still Tax Groceries in 2026?
Attention shoppers: You'll pay more for groceries in these 10 states.
As if grocery prices weren’t high enough, some states levy a “food tax,” which can add an extra financial burden on families.
As many as 18 million households experience food insecurity in the U.S., according to the latest government data, with another 6.8 million reportedly unable to afford enough groceries due to insufficient funds.
Some folks have it worse than others, as a handful of states continue to charge a food tax, sometimes adding up to 10% or more at the checkout. If you live in one of these states, you could be spending more than $10 just on sales taxes for every $100 of groceries you buy.
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That can quickly add up for families already feeling the effects of inflation. Here’s a closer look at which states still have a food or grocery sales tax this year.
(Note: Local sales tax may still apply in some states that have exempted groceries at the state level.)
Food Tax
Why states tax groceries
Grocery taxes can generate significant revenue for states, which is allocated and often used to fund essential departments such as education and transportation.
Of the 10 states that still tax groceries, less than a handful impose reduced rates.
- Some states offer a grocery tax credit that helps offset taxes paid throughout the year.
- Lawmakers in several states have introduced bills to reduce or eliminate taxes on groceries over the past few years.
Here are the states that still impose a statewide tax on groceries as of January 2026.
Alabama
Alabama still taxes groceries, but the state passed legislation to reduce Alabama's grocery tax by 2%. The first 1% cut reduced the state's tax rate from 4% to 3%.
The second 1% tax cut occurred in September 2025, so as of 2026, Alabama’s state grocery tax stands at 2%.
Overall, the food tax reduction doesn’t apply to local tax jurisdictions. So, in areas where the local and combined sales tax rate is 10% (such as Montgomery), Alabama residents still pay a 9% tax when they visit the grocery store.
Hawaii
Although Hawaii doesn’t technically have a sales tax, the state does have an excise tax, which is passed to consumers and reflected in retail prices.
This tax applies to groceries. The tax rate averages 4% in Hawaii, according to Tax Foundation data.
However, eligible residents may claim a Hawaii grocery tax credit to help offset the tax on groceries. There are several requirements for claiming the state's grocery tax credit, and federal adjusted gross income (AGI) is a factor.
- For the previous tax year, single filers with an AGI of $40,000 or more ($60,000 for joint filers) couldn’t claim the credit.
- Those listed to claim the credit must have been in Hawaii for more than nine months of the taxable year to be eligible.
Idaho
Idaho taxes groceries at the full 6% state sales tax rate. However, the state offers a grocery tax credit. The refund averages $155 for most Idaho residents, according to the Idaho State Tax Commission.
Idahoans may also receive a credit for each qualifying dependent. Part-year residents may receive a partial grocery tax credit.
Note: An initiative to get a repeal the state's 6% grocery tax on most food items on the November 2026 ballot is currently circulating in Idaho. Stay tuned.
Mississippi
Mississippi recently reduced its sales tax on groceries in recent years, from 7% to 5%.
The decrease follows a measure that passed earlier this year, which is set to reduce the tax to 2.5% by 2036, decreasing by 0.2% annually. Still, some lawmakers are unsure whether lowering grocery taxes will support revenue growth.
Separately, efforts to reduce the state’s income tax have also been successful. As a result, some Mississippians began paying less income tax last year.
Missouri
Missouri is another state with a reduced tax on groceries. The state currently imposes a 1.225% food sales tax, at least through December 31, 2026, and cities and counties can charge their own sales tax rates.
Local tax rates alone can exceed 8% in some areas of the state, according to the Tax Foundation.
According to local reports, some Missouri lawmakers are considering eliminating the grocery tax to support low-income families.
No concrete proposals have been pushed forward, so for now, Missourians are stuck with grocery taxes.
South Dakota
A four-year “tax holiday” reduces South Dakota’s sales tax rate, including the tax on groceries, from 4.5% to 4.2%. This temporary tax cut took effect on July 1, 2023.
Some South Dakota lawmakers want to repeal the state’s grocery tax, but efforts have so far not been successful.
Tennessee
Tennessee’s tax on groceries is 4%, but local jurisdictions can add up to 2.75% in local sales taxes.
A couple of years ago, state residents received a three-month break from the state-wide sales tax on food.
WKRN reported that Tennessee families were able to save at least $100 during the three-month break for tax-free groceries. If the state eliminated its 4% tax rate on grocery items, the average family could save up to $400 annually.
Utah
Although the state’s portion of the grocery tax is 1.75%, Utah residents are charged a 3% tax on groceries statewide.
A ballot that would have eliminated the 1.75% state portion of the tax failed in recent years.
States that recently eliminated grocery tax
Arkansas
In Arkansas, the state sales tax on groceries is eliminated as of 2026. The former 0.125% rate was the lowest tax rate of the states that taxed groceries, and accounted for about $10 million in annual revenue.
That being said, the state does impose a 6.5% sales tax on most purchases outside of groceries.
Gov. Sarah Sanders said in her State of the State address last year that she wanted lawmakers to eliminate the state-level grocery tax.
Illinois
Illinois had a 1% state tax on grocery items last year, but changes have been implemented as of January 1, 2026.
- Starting January 1, 2026, Illinois eliminated its 1% sales and use tax on food intended to be consumed off-premises.
- The tax break doesn't include alcoholic beverages, foods infused with adult-use cannabis, soft drinks, candy, or food prepared for immediate consumption.
Still, local governments will have the option of imposing the 1% tax by ordinance.
This isn't the first time Illinoisans have had tax-free groceries. The state temporarily rolled back its 1% rate on food tax for one year, which ended in 2024.
Kansas
Kansas eliminated the grocery tax in January 2025. This comes after gradually reducing the tax over the past year.
Kansas grocery tax was 2% (reduced from 4%) last year, but the reduction did not apply to local tax rates.
For more information, see Kansas Food Tax Cut: How Much Will You Save?
Oklahoma
Oklahoma eliminated its 4.5% statewide grocery tax on August 29, 2024. According to state lawmakers, each family could save as much as $648 a year once the tax cuts are enacted.
Still, Oklahomans are not entirely off the hook. Grocery shoppers can expect to pay a sales tax on some items since the tax cut doesn't include all foods.
For more information see Why You'll Still Pay Oklahoma Grocery Tax.
Local sales taxes, as high as 7% in some areas, will still apply once the Oklahoma grocery tax cut takes effect.
