State sales tax on food abolished since August 29th – this saves Oklahomans money
Starting August 29, all Oklahomans can expect cheaper grocery bills. This date marks the culmination of years of work to provide Oklahomans with much-needed financial relief.
For Americans, grocery shopping is a major expense. According to the Bureau of Labor Statistics, food is the third largest household expense after housing and transportation. Any fluctuation in food prices has a significant impact on household budgets.
More: Oklahoma’s sales tax cut begins soon: What you should know
Unfortunately, grocery store prices are higher than ever. The average Oklahoma household spends over $5,700 on groceries annually. Everyone is feeling the strain of rising inflation, which has only been exacerbated by the federal government’s misguided economic policies. Eggs now cost twice as much as they did in 2019, while the price of white bread has increased 51%. But you don’t need statistics to tell you that—you’ve felt it yourself.
In response to these economic challenges, the Oklahoma Legislature passed the largest tax cut in state history. To make a real difference for our constituents during a time of economic uncertainty and increasing financial stress, we eliminated the 4.5% state sales tax on groceries.
When this tax cut goes into effect on August 29, it will make a real difference in the lives of Oklahomans. Each citizen will save an estimated $105.79 per year on grocery shopping. This extra disposable income can be used for other important needs like education, healthcare or savings. By releasing these funds, families can prioritize what matters most to them while boosting their local economy. Grocery retailers, in the meantime, are making a major effort to make the necessary changes to their inventory and checkout systems to make this change as smooth as possible for their customers.
This financial relief is possible thanks to years of prudent budgeting and stewardship of taxpayer dollars. After repeated budget shortfalls and financial stress, the Oklahoma Legislature prioritized investments in our state’s savings accounts. In fiscal year 2017, our state’s savings totaled $93 million, but through 2024, we have amassed nearly $4.9 billion in savings and reserves to cushion the impact of a future economic downturn. This financial stability allows us to reduce taxes for Oklahomans without impacting essential services like education, transportation and public safety.
While the House Bill 1955 eliminates the state portion of the food tax, it’s important to note that local and county sales taxes will still be collected to fund essential areas like fire, police, and emergency services. In addition, there are some exceptions to the tax cut: Ready-to-eat foods, reheated foods, or deli items will remain taxable. This distinction ensures that the tax break is targeted at essential foods that are the core of a family’s diet and that local restaurants are not put at a competitive disadvantage.
At a time when every dollar counts, the elimination of the state grocery tax is a cause for celebration. As we look ahead to our next legislative session, we must remain committed to implementing policies that promote the well-being of our citizens and strengthen our state’s economic foundation.
Republican Speaker pro tempore Kyle Hilbert has represented the 29th district in the Oklahoma House of Representatives since 2016.
