8 States Where You Pay Taxes on Your Groceries
When economic times get unpredictable, or downright tough, you’ll start seeing list upon listicle of ways to save. Though you may be able to edit your saving habits by stopping certain expenditures, you can’t stop eating. When food costs get ridiculously high, this is why any taxes put on your grocery list feel particularly heinous.
MoneyLion recently did a bit of research to find out just how much certain states tax groceries -- and what that means for your bottom line. This specific statistic proves to be a real good news/bad news situation, depending on where you live.
Also See: 5 Smart Ways To Stock Up on Groceries Amid Inflation and Still Save Money
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Key Findings
Just eight states -- Idaho, Mississippi, South Dakota, Hawaii, Tennessee, Utah, Alabama and Missouri -- have a state grocery tax.
You’ll find the highest tax rate for groceries in Idaho at 6%. This adds $6 to every $100 you spend on groceries there.
The average annual grocery budget is estimated to be around $6,664, which means in states like Hawaii and Tennessee that charge a 4% tax rate on groceries, you’ll spend an additional $267 a year on just those taxes.
If you live in the 42 other states not listed, you don’t have to worry about the extra grocery taxes. Arkansas, Illinois, Kansas, Oklahoma and Virginia have recently removed state taxes on groceries, although local municipalities may still tax.
Though paying taxes may make you lose your appetite, your budget needs to know just where you’ll have to pay more for food. Here are the eight states where you are taxed on groceries, ranked from the highest to lowest tax rates.
1. Idaho
Grocery tax rate: 6%
How much tax is added to your $200 grocery bill: $12
How much tax is added to the average annual grocery budget of $6,664: $400
Note: State residents can secure a grocery credit of up to $155 per person on state tax returns and also can get up to $250 back on sales tax paid for food, per AARP.
2. Mississippi
Grocery tax rate: 5%
How much tax is added to your $200 grocery bill: $10
How much tax is added to the average annual grocery budget of $6,664: $333
Note: Before July 1, 2025, the tax on groceries was 7%.
3. South Dakota
Grocery tax rate: 4.2%
How much tax is added to your $200 grocery bill: $8.40
How much tax is added to the average annual grocery budget of $6,664: $280
Note: The grocery sales tax was reduced from 4.5% in 2023 but is scheduled to go back up to 4.5% on July 1, 2027, unless legislation passes to keep the rate at 4.2%, per AARP.
4. Hawaii
Grocery tax rate: 4%
How much tax is added to your $200 grocery bill: $8
How much tax is added to the average annual grocery budget of $6,664: $267
Note: Hawaii offers a tax credit of up to $220 for taxpayers making less than $40,000 and married taxpayers at less than $60,000, according to AARP.
5. Tennessee
Grocery tax rate: 4%
How much tax is added to your $200 grocery bill: $8
How much tax is added to the average annual grocery budget of $6,664: $267
6. Utah
Grocery tax rate: 3%
How much tax is added to your $200 grocery bill: $6
How much tax is added to the average annual grocery budget of $6,664: $200
7. Alabama
Grocery tax rate: 2%
How much tax is added to your $200 grocery bill: $4
How much tax is added to the average annual grocery budget of $6,664: $133
Note: Alabama has reduced the tax rate from 4% since 2023, per AARP.
8. Missouri
Grocery tax rate: 1.23%
How much tax is added to your $200 grocery bill: $2.46
How much tax is added to the average annual grocery budget of $6,664: $82
Note: Lawmakers reportedly are trying to exempt food groceries from being taxed.
Methodology: For this piece, MoneyLion first sourced the eight states that still levy taxes on groceries (the other 42 states waive any form of sales taxes on most grocery items, excluding some pre-packaged meals and alcohol, among a select others). With these eight states then isolated, MoneyLion was able to find the state grocery tax rate for each, as well as how much tax would be applied to a $100 grocery bill, a $200 grocery bill and to the average annual grocery expenditure -- as sourced from the Bureau of Labor Statistics’ (BLS) 2024 Consumer Expenditure Survey. The amounts were adjusted to 2026 dollars using the BLS CPI inflation calculator. To find the grocery tax of the eight states, MoneyLion used AARP.org’s “8 States That Still Tax Groceries in 2026.” All data is up to date as of May 11, 2026.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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