Listings of Taxable and Exempt Foods and Beverages Sold by Food Stores and Similar Establishments

Tax Bulletin ST-525 (TB-ST-525)

Issue Date: Updated August 8, 2019

Introduction

Most food is exempt from sales tax. The exemption for food includes:

food products;

dietary foods;

health supplements; and

certain beverages.

Food must meet these conditions to be exempt from tax:

it must be sold for human consumption;

it must be sold unheated; and

it must be sold in the same form and condition, quantities, and packaging as is commonly used by retail food stores.

These foods and beverages, however, are not exempt from tax:

candy and confectionary;

alcoholic beverages;

soft drinks, fruit drinks, sodas, or similar beverages;

heated or prepared meals (sandwiches, salad bars, etc.); and

food or beverage sold for on-premises consumption.

Taxable food and beverage items may be purchased for resale without payment of tax if the purchaser gives the seller a properly completed Form ST-120, Resale Certificate. The purchaser will collect tax when the items are resold. If a purchaser does pay sales tax on a purchase, it may later take a credit on its sales tax return for the amount of tax it paid to the original seller. See Tax Bulletin Sales Tax Credits (TB-ST-810).

Additional resources relating to sales of food and beverages (e.g., sales by restaurants, sales from vending machines, or sales of candy or sandwiches) are listed at the end of this bulletin.

Listings of taxable and exempt food and beverages

The charts below list some examples of taxable and exempt foods and beverages sold at retail food markets and similar establishments. (Note: Any brand name product shown in italics is included as an example and is not to be construed as an endorsement of the product.)

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Exempt foods and beverages Arnold Palmer Half & Half®

Artificial sweeteners

Baby food

Bakery products

Baking products

Beefamato®

Boost®

Bouillon cubes

Bread

Brownies

Butter

Cereals

Chicory

Chocolate (for cooking purposes only)

Clamato Juice Cocktail®

Cocoa

Coconut

Coffee

Coffee creamers

Condiments (e.g., salt, pepper)

Cookies

Crackers

Cupcakes

Dehydrated fruit

Dehydrated vegetables

Diet foods (but not diet candy)

Diet substitutes

Diet supplements

Doughnuts

Dressings

Eggs and egg products

Ensure®

Fats

Fish and fish products

Flavorings (e.g., vanilla or almond

extract)

Flour

Food coloring

Frozen desserts

Frozen dinners Fruit

Fruit juices containing 70% or more of

natural fruit juice (unless carbonated)

Fruit Rollups®

Game (e.g., partridges, rabbits, wild

turkeys)

Grain products

Granola bars

Gravies

Great Shakes®

Health bars

Health food

Health supplements

Herbs

Honey

Ice cream (prepackaged)

Iced coffee

Iced tea (frozen or liquid)

Iced tea mix

Instant breakfast mix

Jams (fruit preserves)

Jelling agents

Jellies

Ketchup

Lard

Leavening agents

Liquid diet products

Mayonnaise

Meats and meat products

Milk and milk products

Mustard

Non-stick cooking sprays

Nutrament®

Nuts and nut products (but not

chocolate- or candy-coated or honey-

roasted nuts)

Oils (cooking, salad)

Oleomargarine

Olives

Ovaltine®

Peanut butter

Peanuts Pepper

Popcorn

Potato chips

Poultry

Poultry products

Preservatives

Pretzels

Quik®

Relishes

Salad dressing mixes

Salad dressings

Salt

Sandwich spreads

Sauces

Seafood

Seasonings

Sesame seeds (for baking)

Sherbet

Shortening

Slim-Fast®

Soup

Spices

Starch (for cooking)

Start®

Sugar

Sugar substitutes

Sunflower seeds (sold for human

consumption)

Syrups

Tang®

Tea

Vanilla extract

Vegetables

Vegetable juices

Vegetable oils

V8 Juice®

Vitamins

Yeast Taxable foods and beverages 5-Hour Energy®

Beer

Bottled water

Candied apples

Candy and confectionery

Caramel-coated popcorn

Caramels

Carbonated beverages

Carbonated water

Chewing gum

Chocolate candy

Chocolate-coated nuts

Chocolate-coated pretzels

Coated candy

Cocktail mixes

Collins mixer

Cranberry juice cocktails

Dietetic candy

Dietetic carbonated beverages

Dietetic soft drinks Fountain drinks (e.g., sodas,

milkshakes, etc.)

French burnt peanuts

Fruit drinks1

Fruit nectars1

Fruit punch1

Fudge

Gatorade®

Glazed fruit

Hi-C®

Honey-roasted nuts

Ice

Ice cream cones (made to order)

Ice cream sodas

Ice cubes

Jordan almonds

Kool-Aid®

Lemonade

Licorice Maple sugar candy

Mineral water

Monster Energy Drink®

MiO Liquid Water Enhancer®

Nuts (chocolate or candy coated)

Orange Crush®

Pet foods2

Powerade®

Red Bull®

Rockstar Energy Drink®

Seltzer (water)

Soft drinks

smartwaterTM

Vegetable plants (used to grow food)

Vegetable seeds (used to grow food)

Vichy water

vitaminwaterTM

Yoo Hoo®

Coupons and food stamps

For information about foods and beverages purchased with coupons or food stamps, see Tax Bulletin Coupons and Food Stamps (TB-ST-140).

1If product contains less than 70% real fruit juice. (back)

2Pet food purchased for guide, hearing, and service dogs is exempt. See Tax Bulletin Exemptions Relating to Guide, Hearing, and Service Dogs (TB-ST-245). (back)

Note: A Tax Bulletin is an informational document designed to provide general guidance in simplified language on a topic of interest to taxpayers. It is accurate as of the date issued. However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning.

Note: A Tax Bulletin is an informational document designed to provide general guidance in simplified language on a topic of interest to taxpayers. It is accurate as of the date issued. However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning.