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What States Don't Tax Food?

Published in Food Taxes 2 mins read

Five states in the U.S. do not impose sales taxes on food items, including groceries, candy, and soda. This policy helps reduce the cost of living for residents, as everyday food purchases are not subject to an additional state sales tax.

States Exempting Food from Sales Tax

The states that do not levy taxes on groceries, candy, or soda are:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon

This means that when you purchase eligible food items in these states, the final price you pay is the shelf price, without any added state sales tax. This approach differs significantly from states that apply a sales tax to food, or even those that levy additional local sales taxes on top of a statewide sales tax on such items.

Understanding the Impact

For consumers, the absence of sales tax on food can lead to noticeable savings over time, particularly for households with higher grocery expenditures. It reflects a policy choice that can make essential goods more affordable and contributes to the overall economic environment for residents in these states.

State Food Sales Tax Status (Groceries, Candy, Soda)
Alaska No State Sales Tax on Food
Delaware No State Sales Tax on Food
Montana No State Sales Tax on Food
New Hampshire No State Sales Tax on Food
Oregon No State Sales Tax on Food