- Sales Tax on Groceries: Most groceries, including traditional Thanksgiving items like turkey and potatoes, are exempt from statewide sales tax in all but 11 states. However, local communities may still impose sales tax on groceries, and there is ongoing political debate regarding the taxation of food during inflation, with some states moving towards eliminating sales tax on groceries.
- Taxation of Prepared Foods: While homemade dishes are generally exempt from sales tax, prepared foods are typically taxable in many states. For example, in New York, tax applies to items such as fruit trays and cookies bought from a store, but not to cookies made at home and brought to the gathering.
- Alcohol and Dining Sales Tax: Alcohol, like wine served with Thanksgiving dinner, is subject to sales tax in many states, and dining in a restaurant usually incurs sales tax as well, except for takeout in places like Ohio. Additionally, food delivery services may face different taxability rules based on food preparation and packaging, while travel-related services, such as lodging and airline tickets, can also involve various taxes.
Source: taxconnex.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
