GROCERY TAX: What you need to know about the upcoming changes to sales tax

July 1st marks the start of a new fiscal year for the State of Oklahoma and the Oklahoma Tax Commission is providing more information on the upcoming grocery tax changes.

State lawmakers passed a law that eliminates the state portion of the sales and use tax on certain grocery items. That change takes effect August 29th, 2024.

When that happens, shoppers will no longer pay the state’s 4.5 percent sales tax on what the state describes as ‘food and food ingredients.’ Shoppers will still pay local sales and use tax rates.

State tax will still be charged on things like alcohol, tobacco, and non-food items like toothpaste and pet food.

You’ll also pay tax on prepared foods like hot and ready-to-eat chicken strips or a cup of coffee. Coffee beans, however, will not be subject to state tax.

Click here for a product guide breaking down which items are exempt from state sales tax