Sales Tax Exemptions by State
6 min
Grocery Exemptions
About half of US states exempt groceries from sales tax. States like California and Mississippi tax groceries at the full rate. Some states like Tennessee are reducing their grocery tax.
Clothing Exemptions
Only a few states fully exempt clothing: New York, Massachusetts, Pennsylvania, New Jersey, Connecticut, Vermont, Rhode Island, and Minnesota.
Prescription Drug Exemptions
Every state with a sales tax exempts prescription drugs. Over-the-counter medications are treated differently across states.
Services and Digital Goods
Most states don't tax services. Digital goods like streaming, ebooks, and software downloads are increasingly being taxed.
Tip
Tax laws vary by state and change frequently. Use our calculators for the most up-to-date rates and estimates for your specific situation.
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