Turkey, Tariffs, and Grocery Taxes: The Cost of Thanksgiving Dinner This Year
For some who celebrate, Thanksgiving can mean a full table, family, and a sense of gratitude. But in 2025, it also means a focus on the bottom line.
Thanksgiving 2025 is just around the corner (November 27) with some good news for some who celebrate. After years of surging food prices, the classic holiday feast — at least on paper — costs a little less this year.
The latest American Farm Bureau Federation survey puts the average cost of Thanksgiving dinner for ten people at $55.18. That’s down about 5% from 2024.
But as anyone wandering the grocery aisles can tell you, the dip in prices hasn’t solved the challenges of local taxes, inflation on side dishes, or the hunt for a meal deal that matches last year’s value. Here’s more to know as you plan your celebration.
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Thanksgiving meal deals
From rising food prices to state grocery taxes and tariffs, many factors are influencing this year’s feast and how retailers are responding.
Walmart’s Thanksgiving meal returns for under $40 (less than $4 per person based on a 10-person gathering). That includes turkey, several sides, and dessert.
“We know every dollar and minute counts — which is why we are offering a low-priced, one-click Thanksgiving Meal Basket featuring iconic brands like Butterball and Stove Top alongside trusted Walmart private brand items,” Walmart US president and CEO John Furner stated in a release.
Though, as CNN reports, this year’s kit includes fewer items and more “Great Value” Walmart store brand items than last year's bundle.
Target advertises a $20 Thanksgiving meal deal kit for four, while Aldi touts deals that bring the per-person price even lower to $4 per person, which the chain notes in a press release, is “less than a pumpkin spice latte.”
Note: According to Aldi: The meal deal “includes 21 total products and ingredients to dish out a 14-pound turkey, rolls, cranberry sauce, mac and cheese, stuffing, mashed potatoes with gravy, sweet potato casserole, green bean casserole, and pumpkin pie. Items that are part of the meal are purchased individually.”
Some meal deals may come with caveats. This year’s lowest-priced bundles might include fewer fresh vegetables and substitutions for pricier favorites.
On the bright side, the AFB notes that this year, “a 16-pound turkey only accounts for 39% of the cost of a 10-person Thanksgiving dinner.” (That’s Turkey’s lowest share since 2000.)
- Meanwhile, side dishes like cranberry sauce and some name-brand rolls have reportedly jumped more than 40% in some markets, even as prices on frozen veggies decreased.
- The Farm Bureau says “price increases for fresh produce and key baking ingredients reflect higher costs throughout the supply chain.”
In its latest report, the AFB explains:
“Items like fresh vegetables and sweet potatoes posted some of the most notable increases. A veggie tray is up more than 61% and sweet potatoes are up 37%. Natural disasters contributed to these higher costs. North Carolina, which produces more than half of the nation’s sweet potatoes, experienced hurricane damage that reduced yields and tightened supplies ahead of the holiday.”
Grocery taxes: Where you shop matters
State sales taxes also play a significant role in the real price of Thanksgiving dinner. As of late 2025, thirteen states still impose some form of sales tax on groceries.
In Alabama and Mississippi, for instance, families can face effective sales tax rates as high as 9% on grocery staples, adding up to $5 to a typical dinner basket.
- Kansas stands out for eliminating its grocery food tax as of January 1, 2025. This means a shopper there pays just the shelf price on food and food ingredients.
- In some places, prepared foods can sometimes carry an additional local or “meals tax,” as seen in Louisiana and Virginia.
Be sure to check your state’s tax policy on food and groceries. Even small taxes can make that store-bought Thanksgiving bundle pricier than advertised, depending on where you live.
What about tariffs?
Adding to these challenges, President Trump’s sweeping tariffs have impacted several food categories, especially those with more extensive packaging. Examples include canned vegetables, which can be more expensive due to steel and aluminum tariffs.
The Trump administration recently announced tariff rollbacks on goods like coffee, tropical fruits, and certain spices. However, many of those items aren’t traditional Thanksgiving staples.
For SNAP recipients and many working families, the checkout experience is still challenging. New federal rules and delayed benefits due to the recent government shutdown have left some with less to spend — even as food costs stabilize a bit.
Thanksgiving 2025: Bottom line
The story for 2025: The cost of Thanksgiving dinner has ticked down a little, but the actual number on your receipt doesn’t just depend on what you buy or where you shop. It can also be impacted by a web of sales taxes and tariffs.
If you’re in a state that has eliminated or lowered its grocery tax or you find a great holiday meal deal, you might see some relief at the checkout. But as always, pay attention to the fine print in your area to savor the smartest savings.
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As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
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