Sales Tax Guide · Updated November 7, 2026

Grocery & Clothing Tax Exemptions by State

Published November 7, 2026 · Reviewed by the USA Sales Tax Calculator editorial team.

Groceries and clothing are the two categories most likely to make a receipt behave differently from the statewide sales tax average. Most states exempt at least some unprepared food, and a smaller group exempts clothing or applies a per-item cap. The details matter: a grocery exemption may apply only to food for home consumption, a clothing exemption may exclude accessories or athletic wear, and a "reduced rate" is not the same thing as a full exemption. This guide breaks down the main patterns and the states that illustrate them.

Grocery tax patterns

There are four broad grocery models. First, full exemption: the state applies a 0% rate to qualifying food and food ingredients, although local taxes may still apply. Second, reduced state rate: the state taxes food at a lower percentage than the general rate, with local taxes layered on top. Third, full taxation: food is taxed like any other tangible good. Fourth, no statewide sales tax at all, which is the NOMAD group of Alaska, Delaware, Montana, New Hampshire, and Oregon, though Alaska allows local borough and city sales taxes.

What counts as food

The definition of "food and food ingredients" usually follows the Streamlined Sales Tax Agreement: substances sold for ingestion or chewing by humans, consumed for their taste or nutritional value. The definition generally excludes alcoholic beverages, tobacco, candy, dietary supplements, and prepared food. That is why a grocery cart can contain both exempt and taxable items. A bag of flour is typically exempt; a candy bar is taxable in many states even when it sits in the same aisle. Soft drinks are often singled out for tax, and bottled water is sometimes treated differently from other beverages. Prepared food — food sold in a heated state, food mixed by the seller, or food sold with eating utensils provided by the seller — is almost always taxable at the full rate.

Local rules can add another layer. In states that exempt food from the state rate but allow local sales taxes, the same grocery basket may carry a county or city tax. Illinois and Oklahoma are examples of states that moved to a 0% state grocery rate while local taxes may still apply. Missouri instead taxes food at a reduced 1.225% state rate and layers local taxes on top. Utah taxes food at a reduced 1.75% state rate. The state calculator pages show the grocery rule and the reduced rate in the special-taxability section:Illinois,Oklahoma,Missouri, andUtah.

Clothing tax patterns

Clothing is more fragmented than groceries. Most states tax clothing at the full combined rate, but a minority exempt it or exempt it below a per-item threshold. Massachusetts exempts most clothing and footwear, New Jersey exempts clothing and footwear, Pennsylvania exempts clothing, and Rhode Island exempts clothing and footwear. Minnesota exempts clothing and footwear, and New York exempts clothing and footwear under $110 per item, with a higher threshold in some local jurisdictions during designated periods. Several states combine a permanent exemption with a temporary holiday, which can create overlapping rules.

Per-item caps are common because they target the exemption at ordinary consumers rather than luxury purchases. A "$110 per item" exemption means a $150 coat is fully taxable in some states, while in others only the excess over $110 is taxable. The calculation depends on the statute: some states treat the item as taxable once the price exceeds the cap, and others tax only the amount above the cap. Always check the state's rule before assuming a $120 item receives a partial exemption.

Accessories, athletic wear, and footwear

Clothing exemptions often exclude accessories such as jewelry, handbags, watches, and sunglasses. Athletic clothing may be taxable even when ordinary clothing is exempt, and protective equipment such as helmets and pads is usually treated separately. Footwear may be included or excluded depending on the state's definition. In Massachusetts, the exemption covers clothing and footwear but not accessories; in Pennsylvania, clothing is exempt but accessories and sports equipment generally are not. If a receipt mixes exempt clothing with a taxable accessory, tax should apply only to the accessory line.

Sales tax holidays

Many states run temporary holidays that suspend tax on clothing, school supplies, computers, or disaster-preparedness items. These holidays usually have a short window, a per-item cap, and a detailed list of covered items. They do not change the permanent exemption status of the item. A state that normally taxes clothing may exempt it for one weekend, and a state that already exempts clothing may add a holiday for backpacks or computers. Thesales tax holiday schedulecovers the recurring windows, and each state calculator notes the state's annual holiday rule.

How to handle a mixed grocery or clothing receipt

1. Classify each line as exempt, reduced-rate, or fully taxable.
2. Apply the state grocery or clothing rule before adding local taxes.
3. Check whether local taxes apply to the exempt category in that state.
4. Apply per-item caps line by line rather than to the basket total.
5. Keep the itemized receipt so the classification can be rechecked.

For a quick estimate, open the state calculator and use the receipt workspace to classify each line. The restaurant and prepared food guide covers the prepared-food boundary, thelocal tax guideexplains why the local layer may survive a state exemption, and themethodology page documents the data sources behind each rule.

Prepared food is the exception that proves the rule

A grocery exemption usually covers food for home consumption, not food that is ready to eat. The same store can sell an exempt cold sandwich from the deli case and a taxable hot sandwich from the same counter. The distinction often turns on whether the seller heats the food, mixes it, or provides utensils. A salad bar, a hot bar, and a made-to-order counter are common examples of prepared food, while a packaged salad with no utensils may be grocery food. The restaurant and prepared food guide covers the boundary in more detail.

Candy, soft drinks, and dietary supplements are usually excluded from the grocery exemption even when they sit in the same aisle. Some states tax them at the full rate, some at a reduced rate, and some treat them as food. Bottled water may be exempt or taxable depending on the state's definition. If a receipt mixes these items with exempt groceries, allocate the tax by line rather than applying one rate to the basket.