With inflation on the rise and prices seeming to skyrocket everywhere, many people certainly are struggling to save money on groceries . Luckily, food prices are only expected to rise 1.1% in 2025, according to the USDA Food Price Outlook.
Twelve of the 45 states with a sales tax charge statewide taxes on groceries on top of any local or municipal taxes collected. Among those 12, some states offer lower tax rates on food or a rebate for you to claim on your tax return, but others tax groceries based on the total sales tax rate.
Editor’s note: These rates are subject to change due to frequent alterations to sales tax regulations .
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1. Alabama
Alabama is one of the few states that applies the whole state sales tax rate of 3% to food and groceries, a reduction from 4% as of September 2023…