Idaho has the highest state grocery tax in the country: why?

IDAHO FALLS, Idaho (KIFI)— As Idahoans continue to face higher grocery bills, the state remains one of the few in the nation that still taxes groceries.

Idaho currently imposes a 6% sales tax on most grocery purchases. To offset the cost, eligible residents can claim a grocery tax credit when filing their state income taxes.

Supporters of the current system say the tax credit provides relief to Idaho families while allowing the state to continue collecting revenue for the general fund.

Others argue the tax places an additional burden on residents already struggling with rising food prices.

Bryan Smith, Republican National Committeeman of Idaho, calls the 6% tax on groceries an "arcane, archaic, ridiculous food rebate scheme."

"There is absolutely no reason for us to be taxing people's food," Smith said, "You shouldn't have to pay tax to eat the food at the family dinner table, but we do."

Efforts to repeal Idaho's grocery tax have surfaced repeatedly over the years, but concerns about replacing lost revenue have prevented those proposals from becoming law.

Harold Harris, who helped lead a recent effort to place a grocery tax repeal measure on the ballot, said supporters collected thousands of signatures before concerns about a potential state budget shortfall gained traction.

"They picked up a lot of signatures, thousands of signatures that way," Harris said. "But then, this rumor came throughout the state that we were going to have a shortfall in our state budget."

For many shoppers, the tax comes at a time when grocery costs remain elevated.

"It'd be nice if things were a little bit cheaper right now, especially with the prices already so high," Zoe Creed, an Idaho Falls shopper, said. "Sometimes I'm like, wow, I thought I was not spending that much."

However, Creed also does not mind paying the grocery tax if it funds essential government programs.

"If they want to get rid of the tax, they need to find a way to make up for it, because right now, I know a lot of things are struggling and I'm fine with paying for a higher price for groceries," Creed said.

Smith believes the grocery tax should be eliminated altogether.

"My position is the grocery sales tax is an immoral tax," Smith said. "You shouldn't have to pay tax to drink water, and you shouldn't have to pay tax to eat food."

The debate is expected to continue as lawmakers and residents weigh the impact of the tax on families and state revenues.

Sponsors of a 2026 ballot initiative to repeal Idaho's grocery tax stopped collecting signatures and withdrew the measure in April.