- Sales tax on food varies by state and whether it is groceries or prepared food.
- Most states do not have a general sales tax on groceries, but many local communities do.
- States that tax groceries include Alabama, Arkansas, Hawaii, Idaho, Illinois, Kansas, Mississippi, Missouri, South Dakota, Tennessee, and Utah.
- Some states exempt only grocery staples, while others tax candy, alcohol, and soft drinks.
- The definition of a grocery item varies by location.
- Restaurant sales are generally subject to sales tax and sometimes additional meals taxes.
- Ready-to-eat food, whether dine-in or take-out, is more complex than groceries.
- Kansas has zero sales tax on groceries but maintains full sales tax on prepared food.
- Take-out food is exempt from sales tax in Ohio.
- Taxable prepared food in Michigan includes food sold heated, mixed, or with eating utensils provided by the seller.
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.
