Oklahoma, this is an exciting time to work as a cashier in a grocery store! In the coming weeks, cashiers will have a front-row seat to watch customers light up at the impact of removing the 4.5% grocery tax on their food bill.
Effective August 29th, 2024, a bill through the Oklahoma House of Representatives will remove the 4.5% state grocery tax. The nationwide push to remove the state grocery tax addresses the strain of inflation on low and middle-income families, which is especially noticeable in the rising prices of grocery store foods. Before today, Oklahoma was one of only thirteen states that still implemented the tax, so now Oklahomans can prepare to see a decrease in their grocery bills.
Will There Still Be Taxes on my Groceries?
Yes, there will still be taxes on grocery store items. Local taxes – which differ from city to city – still apply.
Most traditional ingredients, like whole and pre-cut produce, meat, or dairy will not fall under the 4.5% state grocery tax anymore. Some foods and beverages, such as alcohol or pre-prepared hot foods, will still be under the state tax.
Look at this easy-to-understand list to learn what items are no longer taxed by the state.
How Much Will You Save?
Those who use SNAP EBT cards to buy groceries are already exempt from state taxes, so this tax cut will more noticeably benefit those who aren’t eligible for SNAP (or food stamps) but still feel the burden of rising grocery prices.
A tax cut of 4.5% is equal to saving $3.83 on an $85 grocery bill. According to the Oklahoma Policy Institute, this change will save roughly $65-$125 per year for a household income of $23,900-$44,000. For those with a household income ranging from $44,000-$130,000, the estimated yearly savings is $170-$230.
What Does This Mean for You?
We all know that healthier foods can be more expensive, but now this higher cost is partially offset by the end of the state grocery tax. This means you have more room in your wallet for those healthy foods you haven’t had a chance to purchase yet.
So, the next time you make a grocery store run, check out your receipt as you leave – you’ll be pleasantly surprised!