Friday, January 18, 2008

Which States Tax Groceries?

The Tax Foundation has posted this interesting entry on which states tax groceries. According to the entry, “states that tax groceries (rate if not fully taxed): Alabama, Arkansas (3%), Hawaii, Idaho, Illinois (1%), Kansas, Mississippi, Missouri (1.225%), Oklahoma, South Dakota, Tennessee (5.5%), Utah (1.75%), Virginia (1.5% + 1% local option tax), and West Virginia (5%).”

However, it is important to note that “Idaho's income tax provides a $20 credit per person that is designed to partially offset the impact of taxing groceries. Also, our source for this data, CCH, cites a Kansas law that allows for a ‘limited tax refund available to disabled, elderly, and low-income households.’”