Could grocery store taxes be on the way out?

State sales taxes on grocery store purchases are becoming increasingly rare, and their elimination across the country could be having a domino effect. 

Oklahoma eliminated its 4.5% grocery sales tax in February of 2024, and nearby Kansas has followed suit, cutting its 2% tax. Meanwhile, Illinois also eliminated its grocery tax, but that cut doesn’t go into effect until 2026. 

The Kansas tax cut has Missouri grocers concerned, according to a story in KSHB 41 NBC news. 

The Kansas tax has been slowly reduced over the last few years, dropping from 6.5% to 4% in 2023, and declining further in 2024 to 2%. Kansas completely eliminated the tax as of January, according to the Kansas Department of Revenue. 

The KSHB 41 story noted that Missouri’s food sales tax currently stands at 1.225%, and some shoppers who live near the Kansas border plan to take their business across state lines. 

“Oh yeah, it’s going to affect how I shop. I’m going to spend a lot more time in Kansas buying food than in Missouri,” shopper Marcus Moses told KSHB 41.

For a lot of Missourans, though, the cost of gas might keep them in the state, according to the story. “It costs more in gas to get over there and back,” shopper Jeremy Coleson told KSHB 41.

Only 10 states impose taxes specifically on grocery store purchases, and Missouri’s is the lowest. Mississippi charges 7%; Idaho 6%; South Dakota 4.5%; Tennessee, Alabama, and Hawaii 4%; Virginia 2.5%; Utah 1.75%; Arkansas 1.5%; and Missouri at 1.23%.

* This story was updated to correct the year Oklahoma eliminated its grocery tax.