Grocery shopping is a routine part of life, but in 2025, many shoppers noticed something different at checkout. Grocery taxes, which often go unnoticed, quietly increased in several states this year. These changes matter because they affect how much you pay for basic needs. Even a small tax hike can add up over time, especially for families on tight budgets. Understanding where these increases happened and what they mean can help you plan better and avoid surprises at the register. Here’s what you need to know about the states where grocery taxes went up in 2025.
1. Alabama
Alabama has always taxed groceries, but in 2025, the state increased its grocery tax rate from 4% to 5%. This change happened with little fanfare, but it hit shoppers right away. For a family spending $150 a week on groceries, that’s an extra $78 a year. Alabama’s grocery tax is one of the highest in the country, and the increase makes it even harder for low-income families to keep up. If you live in Alabama, check your receipts and budget for the higher tax. Some local groups are pushing for exemptions on certain foods, but for now, the higher rate is here to stay.
2. Mississippi
Mississippi raised its grocery tax from 7% to 7.5% in 2025. This state already had one of the highest grocery tax rates in the U.S., so the increase stings. The change was part of a larger tax reform package, but many shoppers didn’t notice until their bills went up. If you shop in Mississippi, you’ll see the difference every time you buy food. The higher tax especially affects people who rely on SNAP benefits, since those benefits don’t cover the tax itself. If you’re trying to save, look for local food banks or community programs that help offset the cost. Mississippi’s grocery tax is a significant factor in why food insecurity remains a problem in the state.
3. South Dakota
South Dakota increased its grocery tax from 4.5% to 5% this year. The state uses the revenue to fund schools and infrastructure, but the impact on shoppers is real. For many families, the extra half-percent means cutting back on other essentials. South Dakota is one of the few states that taxes groceries at the full sales tax rate. If you’re shopping here, consider buying in bulk or using coupons to help offset the higher tax. Some lawmakers have talked about reducing the tax in the future, but for now, the increase is in effect.
4. Oklahoma
Oklahoma’s grocery tax went from 4.5% to 5% in 2025. The state government said the increase was needed to balance the budget, but it came as a surprise to many residents. Oklahoma already has a high rate of food insecurity, and the higher grocery tax makes things tougher for families. If you live in Oklahoma, keep an eye out for local tax holidays or special programs that can help you save. Some cities in Oklahoma also add their own sales tax on top of the state rate, so your total tax could be even higher. It’s a good idea to check your local rates before you shop.
5. Kansas
Kansas increased its grocery tax from 6.5% to 7% in 2025. This state has long been criticized for its high grocery tax, and the new increase only adds to the burden. For a family spending $200 a week on groceries, the extra half-percent means about $52 more per year. Kansas lawmakers say the tax helps fund important services, but many residents feel the pinch. If you’re in Kansas, look for store loyalty programs or digital coupons to help lower your total bill. Some advocacy groups are working to reduce or eliminate the grocery tax, but for now, shoppers are paying more.
6. Arkansas
Arkansas raised its grocery tax from 1.5% to 2% in 2025. While this is still lower than in many other states, the increase affects everyone who buys food. Arkansas had previously lowered its grocery tax several times, so the new hike caught some people off guard. The state says the extra revenue will go toward education and healthcare, but shoppers are feeling the impact. If you’re in Arkansas, consider shopping at farmers’ markets or using store brands to help manage costs. Every little bit helps when taxes go up, even by a small amount.
What These Grocery Tax Increases Mean for You
Grocery taxes are easy to overlook, but they have a real impact on your wallet. In 2025, these six states raised their grocery taxes, making it more expensive to buy food. If you live in one of these states, you’re paying more at the register, whether you notice it or not. The increases may seem small, but over a year, they add up. It’s important to stay informed about your state’s tax rates and look for ways to save, like using coupons, shopping sales, or joining loyalty programs. Grocery taxes can change quietly, but their effects are anything but silent.
How have grocery tax changes affected your shopping habits this year? Share your thoughts in the comments.
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