Oklahoma grocery tax comes to an end; What you need to know

OKLAHOMA (KOAM) -- Oklahomans will now see some relief in the grocery line.

Governor Kevin Stitt signed the grocery tax cut bill into law in February. On Thursday, he posted online that the tax cut officially starts. Consumers in the state of Oklahoma will no longer have to pay 4.5 percent tax on groceries, which is expected to save the average family of four about $60 per month.

Additionally, the law prohibits local governments from raising grocery tax rates until July 1, 2025.

“Oklahomans have waited for this day for years, and I’m proud to be the Governor that Oklahomans chose to eliminate the state portion of the grocery tax,” said Governor Stitt in February after signing the Grocery Tax Elimination Bill into Law. “I’ve called for tax cuts every year since I’ve been in office— and when we see such broad bipartisan support for a bill like this, we know we’re doing something right. I’m proud of Pro Tem Treat and Speaker McCall for their hard work and dedication to returning money to our fellow Oklahomans.”

What's NOT Included?

According to an Oklahoma guide, starting Thursday, August 29, 2024, sales of food and food ingredients are not subject to the state sales and use tax rate of 4.5%, but will continue to be subject to local sales and use tax rates.

Sales of prepared food, alcoholic beverages and dietary supplements are subject to the full state sales and use tax rate of 4.5%, as well as any applicable local sales and use tax rates.

You can find details on what will still be fully taxed in the PDF below.

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