Tax Policy Center

Fiscal Facts

July 1, 2024
Grocery food is exempt from most state-level general sales taxes. Among the 12 states that tax it, only Mississippi and South Dakota both levy their full sales tax rate and don’t provide a tax rebate.
Fact: 
Grocery food is exempt from most state-level general sales taxes. Among the 12 states that tax it, only Mississippi and South Dakota both levy their full sales tax rate and don’t provide a tax rebate.