Which States Don’t Tax Groceries?
Groceries are a necessary expense, and sales tax can add up over time. Fortunately, some states in the U.S. either do not have a sales tax at all or fully exempt grocery items from taxation. Here’s a breakdown of where you can buy food tax-free and how different states handle grocery taxation.
States with No Sales Tax
Five states have no statewide sales tax, meaning groceries (and most other items) are generally tax-free:
Alaska
Delaware
Montana
New Hampshire
Oregon
While these states don’t impose a state sales tax, be aware that local governments in Alaska may levy their own taxes, so grocery tax rules can vary by city or borough.
States That Exempt Groceries from Sales Tax
Some states have a general sales tax but make an exception for groceries. Notably:
Minnesota
Vermont
In these states, unprepared foods—such as produce, dairy, grains, and meat—are not subject to sales tax. However, prepared foods (like hot meals or items ready to eat) are typically still taxable.
Beyond these examples, several other states offer partial exemptions or reduced tax rates on groceries. Some provide tax credits to low-income households to offset food costs. These policies vary widely and reflect each state's approach to reducing the financial burden on residents.
Why Some States Don’t Tax Groceries
Exempting groceries from sales tax is often intended to lessen the financial strain on families, especially those with lower incomes. Since food is a basic necessity, many lawmakers believe it should not be taxed like discretionary items.
Conclusion
Whether your state taxes groceries or not can make a noticeable difference in your budget over time. If you're moving, budgeting, or just curious, it's helpful to know where your state stands on grocery taxation. For millions of Americans, this policy can be the difference between stretching every dollar or falling short at the checkout.
