Sales taxes are one of the largest costs a retiree, or even non-retiree, can face. In fact, I argue of the big three taxes retiees face, income, sales and property, property tax is the worst followed by sales tax. Income tax is the least worrisome because it can be dealt with with proper planning.
But when you have to pay tax on your food, that just adds to your total cost. After all, you’ve got to eat! So unless you’re raising your own food, or bartering for some, if you’re in a state that taxes groceries you’ll need to account for that fee in your expenses.
In this video, I show you the 13 states that do indeed tax groceries. Now some will not tax groceries as much as their normal sales tax rate. While others make no exemption at all for groceries. So keep that in mind.
But, no matter how you look at it, if you live in one of these states you’re going to pay sales tax on the food you purchase.