States that still have grocery taxes look to cut them to help residents save a bit more on food costs

Even cereal boxes look alarmed at their
prices. (Photo by G. Fryer, TRB)

After years of grocery inflation, U.S. food prices are so high that many families have tightened their food budgets. And while the average American can't do much more to fight food and staple costs, some states have cut their grocery sales tax to help ease some of the burden, reports Elizabeth Daigneau of Route Fifty. "Earlier this month, Gov. JB Pritzker signed legislation eliminating Illinois' 1% tax on groceries starting in 2026, saying the tax is regressive and hurts low-income Illinoisans."

Even as overall inflation cools "food prices are still far higher than they were pre-pandemic," Daigneau explains. "And grocery shopping is a major expense for all Americans: Food ranks as the third-largest household expenditure, following housing and transportation, according to the Bureau of Labor Statistics. . . Next week, Oklahoma’s 4.5% statewide grocery tax will come off the books."

Many states already eliminated grocery taxes. "With the legislation in Oklahoma and Illinois, now only 10 states impose a grocery tax. That number could soon be down to seven as Idaho is considering eliminating its 6% grocery tax in the 2025 legislative session," Daigneau reports, and Utah and South Dakota voters will decide if their grocery taxes should be nixed during November's elections.