11 US States That Tax Your Groceries
Road tripping is a classic way to introduce yourself and your family to new places, cultures, and cuisines. Almost every person has at least one core childhood memory earned from traveling across the country — whether in pursuit of spontaneous adventure, or in search of the best drive-in restaurant in every state. If you're planning on hitting the highway for an extended time, it's inevitable that when the recipes you make to take on the road trip run out, you'll need to strengthen your food reserves by stopping at a grocery store or two.
For this scenario, we went to work for you (and your wallet) and rounded up the destinations to avoid stopping for groceries. According to Stripe, there are 11 states that charge a grocery tax. Four states charge their full rate (South Dakota, Idaho, Mississippi, and Hawaii) while seven states tax groceries at a reduced rate compared to their standard sales tax (Alabama, Arkansas, Illinois, Missouri, Tennessee, Utah, and Virginia).
We believe that when traveling — as with anything in life — it's best to be prepared. So, we've pinpointed the potential pitfalls in each location, such as the weird Illinois tax that makes some candy types cheaper than others. Taxes in these 11 states range in rates from .125% to 7%. Additionally, while the 39 states not mentioned might be safe in shielding you at state level, regional and local taxes could still apply.
Hawaii
While Hawaii might be breathtaking to explore, research shows it's the least affordable state to travel to. That high cost trickles down to groceries, which are taxed at 4%. But it's not just the tax to be aware of; as reported by Go Banking Rates in 2024, Hawaii was the most expensive state in America for groceries, with the average person spending between $139 and $160 per week in Honolulu, the state's capital.
Arkansas
At a rate of .125%, Arkansas charges the lowest grocery tax among the states on this list — but we still believe it's worth a heads up. Additionally, if you find yourself parked in front of a food establishment in Little Rock past 9 p.m., be sure not be get caught honking your horn — it's illegal there. We think it's one of the weirdest food laws in the U.S.
Illinois
Illinois is a great place to find some of the best wood-fired pizzas in the U.S. However, if you need groceries while you're there, prepare to be taxed at 1%. Not only does the state not have tax-free groceries, but cross over into Mattoon and you also can't find a Whopper anywhere. Sadly, due to a historical battle over naming rights, Burger King is banned in this Illinois town.
Virginia
Virginia taxes grocery sales at 1%. If you happen to pass through during summer, it's a great time for wine tours. Consider taking in Crozet, the charming Virginia town near the Blue Ridge Mountains that's a hidden gem for wine lovers and foodies.
Tennessee
Tennessee is known for its distinguished whiskey, which we think is enough of a reason to stop there — despite the state's 4% tax on groceries. If you get the opportunity to sample the whiskey, make sure it's produced within state lines and filtered through maple charcoal before it's aged. This process (the Lincoln County Process) is what makes Tennessee whiskey unique from bourbon.
South Dakota
Famed for Mount Rushmore, and also home to one of the best BBQ restaurants in America, South Dakota taxes groceries at 4.2%. What's more, some residents claim the options in South Dakota are sub-par. Redditors at r/RapidCity discussed the lack of quality and variety, with one person saying, "The vegetables and fruit that [arrive] in most grocery stores here is not as good as the same chain store a few states away."
Alabama
Many refer to Alabama as a sweet home, where the skies are so blue — though we're not so sure the 3% tax on groceries adds any validity to that claim. If the grocery tax doesn't deter you from visiting, it's also long been rumored that walking with ice cream in your pocket is illegal in Alabama — though our investigative research found no evidence of any such law on the record.
Missouri
If taking in the Gateway Arch is on your bucket list, you need to stop in Missouri. While you're there, be prepared to pay the 1.225% grocery tax. If you find yourself shopping there, be aware that BBQ burnt ends are a favorite meal — once upvoted to the dish that Redditors believe should really be Missouri's official food. You can find the dish, made from beef brisket, fresh or frozen at most local grocery stores.
Utah
At 1.75%, Utah's tax on groceries is among the low-ranking rates on our list, so a stopover here wouldn't be the worst experience for your wallet. If you find yourself perusing the grocery aisles, and the craving hits for cheesy potato casserole, be aware that this classic – known by many names in many locations – is referred to as "funeral potatoes" by the people of Utah. It's also a resident favorite, according to Redditors.
Idaho
Idaho taxes groceries at 6%, which is one of the steepest rates on our list. If you're willing to look past that, stopping in this state does provide the opportunity to score fresh and locally grown produce through its Idaho Preferred network of stores and farmer's markets. What's more, Idaho natives, many of whom consider themselves potato connoisseurs, are always eager to give potato selection and preparation advice.
Mississippi
The largest grocery tax rate in America is found in Mississippi, where you pay a whopping 7% more at the store. A Redditor at r/Mississippi noted, "My wife and I travel quite a bit and every time we go somewhere, stuff's always cheaper than home." Nevertheless, if you're in Mississippi and decide to make the best of it, find yourself a pig ear sandwich — the absolute best sandwich in the state.