What Items Are Exempt from Sales Tax?

Sales tax exemptions aren’t universal — they vary dramatically by state and item category. Knowing what’s exempt in your state could save you hundreds of dollars per year.

Use our Sales Tax Calculator to calculate the exact sales tax on any purchase in any US city.

The Most Common Sales Tax Exemptions

Groceries (Unprepared Food)

Treatment	States
Fully exempt	CA, TX, NY, FL, GA, NC, VA (reduced), OH, NJ, PA, WI, MN, and 20+ more
Reduced rate (1-4%)	TN (4%), AR (0.125%), VA (2.5%), MO (1.225%)
Fully taxable	MS (7%), AL (4%), SD (4.5%), KS (0%, effective Jan 2025)
No statewide sales tax	OR, MT, NH, DE, AK

Rule of thumb: If a state has a progressive income tax, it usually exempts groceries. States that rely heavily on sales tax revenue (Southern states) more often tax groceries.

Note: Restaurant meals and prepared foods are almost universally taxable, even in states that exempt groceries.

Prescription Drugs

Prescription drugs are exempt in 45+ states. The exceptions are minimal and may change; verify with your state tax authority.

Over-the-counter medications: more variable. About half of states exempt OTC drugs; the rest tax them at the standard rate.

Medical Devices / Equipment

Most states exempt: prosthetics, wheelchairs, hearing aids, crutches, and similar medical equipment with a doctor’s prescription. Some states also exempt blood pressure monitors, diabetic testing supplies, and nebulizers.

Clothing

State	Treatment
Pennsylvania	Most clothing exempt
New Jersey	Most clothing exempt
Minnesota	Most clothing exempt
New York	Items under $110 per item exempt
Vermont	Items under $110 per item exempt
Most other states	Fully taxable

Agricultural Purchases

Most states exempt: farm equipment, seed, fertilizer, pesticides, and livestock feed. Farmers in many states also receive exemptions on fuel used in farm operations.

Manufacturing Equipment

Many states exempt machinery and equipment used directly in manufacturing production. This reduces costs for in-state manufacturers and is a common business development incentive.

Back-to-School Tax Holidays (2026)

States that typically offer annual tax holidays:

State	Usually in	Common Exempt Items
Alabama	Last weekend of July	Clothing, school supplies, computers
Florida	Early August	Clothing, school supplies, computers
Georgia	Late July	Clothing, school supplies
Missouri	Early August	Clothing, school supplies, computers
Texas	Mid-August	Clothing, footwear, school supplies
Virginia	Early August	Clothing, school supplies, Energy Star appliances

Check your state’s revenue department website for exact 2026 dates and item limits.

Online Purchases

Since the 2018 South Dakota v. Wayfair Supreme Court decision, online retailers must collect sales tax in any state where they have “economic nexus” (typically $100,000 in sales or 200 transactions/year). Most major platforms (Amazon, Walmart, eBay) now collect sales tax in all 45 taxing states automatically.

However, marketplace facilitators don’t always apply item-specific exemptions correctly. If you’re buying exempt items (medical equipment, agricultural supplies) online, you may be able to file for a sales tax refund from your state.

Calculating Your Sales Tax

Use our Sales Tax Calculator to find the exact combined state + county + city rate for any location and any purchase amount in the US.