Note: Of South Dakota's neighbor states, NONE tax food.
Taxing groceries:
States that DO NOT tax food:
| Alaska |
Maine |
North Carolina |
| Arizona |
Maryland |
North Dakota |
| California |
Massachusetts |
Ohio |
| Colorado |
Michigan |
Oregon |
| Connecticut |
Minnesota |
Pennsylvania |
| Delaware |
Montana |
Rhode Island |
| District of Columbia |
Nebraska |
South Carolina |
| Florida |
Nevada |
Texas |
| Georgia |
New Hampshire |
Vermont |
| Indiana |
New Jersey |
Washington |
| Iowa |
New Mexico |
Wisconsin
Wyoming
|
| Kentucky |
New York |
States with a lower rate for food:
Illinois taxes food at 1%.
Virginia taxes food at 2.5%.
Missouri taxes food at 1.225%.
South Carolina dropped 1% off its food tax, leaving 3%, then ended it Nov 1, 2007.
Arkansas cut their food tax in half, to 3%.
On Jan.1 '07, Utah dropped 2% off, leaving 2.75%. & dropped 1.5% on 1/1/08.
Tennessee taxed food at 6%,which is 1% less than everything else, and recently cut to 5.5%
On July 1, 2009, Arkansas cut their food tax further, to 2%.
West Virginia food tax has been reduced to 2%, with the latest drop on January 1, 2012.
We know of no other state where the tax on food increased in recent years - only South Dakota.
That leaves South Dakota among only 14 states taxing food, 7 at their full sales tax rates.
36 states and DC do not tax groceries.
Recent Food Tax Changes:
Oct. '96 - Georgia began phasing out of its food tax.
Jan. '97 - N. Carolina reduced its food tax by 1%.
Oct. '97 - Missouri reduced its food tax by 3% to 1.225%.
July '98 - N. Carolina reduced its food tax 1% more.
Oct. '98 - Georgia eliminated its state tax on food.
May '99 - N. Carolina eliminated its state food tax.
Jan. '00 - Virginia began phased reduction in state food tax from 3.5% to 1.5%.
Jan. '03 - Louisiana eliminated its food tax.
Feb. '03 - South Dakota required most cities to RAISE food tax by 1/1/04.
Jan. '04 - Most cities in South Dakota RAISED their food tax
Jan. '05 - New Mexico eliminated its food tax.
Jan. '06 - West Virginia dropped 1% off its food tax.
July '06 - Wyoming dropped all its food tax for the next two years.
Oct. '06 - South Carolina dropped 1% off its food tax.
Nov.'06 - West Virginia legislature passed another % cut for 7/1/07 and another for 7/1/08
Jan. '07 - Utah's food tax went down 2%, saving taxpayers the equivalent of 22 meals/year.
2007 - Wyoming legislature voted to make the end of food tax permanent.
July'07 - Arkansas food tax cut in half, from 6% to3%.
July'07 - West Virginia food tax goes down another per cent.
Nov'07 - South Carolina ended its state food tax.
Jan '08 - Tennessee's food tax gets its first drop, 1/2% off.
Jan '08 - Utah food tax went down another 1.5%.
July '08 - West Virginia's food tax dropped another 1%.
July'09 - Arkansas cut food tax down by another percent: 6% to 3% and now to 2%.
March 2011 - West Virginia legislature voted to cut another 1%.
Jan. 2012 - West Virginia's food tax dropped another 1%, leaving only 2% remaining.
updated 1/3/12.