Iowa Grocery Tax (2026)

Permitted: Food and food ingredients ("grocery" food) are exempt from Iowa sales tax (Iowa Code 423.3(57)).

PermittedVerified Jul 7, 2026

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Food and food ingredients ("grocery" food) are exempt from Iowa sales tax (Iowa Code 423.3(57)). Alcoholic beverages, candy, dietary supplements, soft drinks, tobacco, prepared food, and food sold through vending machines remain taxable.

Official source: revenue.iowa.gov →

General legal information, not legal advice — verify important decisions with a licensed attorney.

Grocery Tax in states bordering Iowa

The same rule in each neighboring state LawLert has verified, from that state’s own official source.

IllinoisConditional
State 1% grocery tax eliminated Jan 1, 2026 — but municipalities may levy a 1% local grocery tax (≈665 have).
Verified Jul 13, 2026 · Source: tax.illinois.gov · Full Illinois rule →
MinnesotaPermitted
Food and food ingredients (groceries) are exempt from sales tax; candy, soft drinks, and prepared food are taxable.
Verified Jul 14, 2026 · Source: revenue.state.mn.us · Full Minnesota rule →
MissouriConditional
Groceries taxed at a reduced 1.225% state rate (plus local); repeal bills are pending.
Verified Aug 27, 2026 · Source: dor.mo.gov · Full Missouri rule →
NebraskaPermitted
Food and food ingredients for human consumption are exempt from sales tax; prepared food and food sold through vending machines are taxable.
Verified Jul 16, 2026 · Source: revenue.nebraska.gov · Full Nebraska rule →
South DakotaRestricted
Groceries taxed at the full 4.2% state rate with no offsetting credit — the only state to do so (rate set to revert to 4.5% on 7/1/2027 absent new law).
Verified Jun 5, 2026 · Source: dor.sd.gov · Full South Dakota rule →
WisconsinPermitted
Food sold by grocery stores is exempt from sales tax unless it meets the definitions of 'candy,' 'soft drinks,' or 'prepared food,' which are taxable (Wis. Stat. sec. 77.54).
Verified Jul 19, 2026 · Source: revenue.wi.gov · Full Wisconsin rule →

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