You see a low price on a rotisserie chicken or a massive pack of batteries and assume that is what you will pay at the register. While some states tax groceries at a reduced rate or not at all, others apply the standard sales tax rate to food items.
Understanding Costco Food Sales Tax Exemption by State
The specific rules regarding what is taxable vary dramatically from one jurisdiction to the next. If you are shopping at Costco for your business—say, you run a restaurant or a grocery store—and you provide your tax ID number, the transaction may be processed as a wholesale purchase.
Businesses that hold a valid resale certificate are exempt from paying sales tax on items they purchase to resell to customers. There are also states like Pennsylvania that tax prepared foods but not raw groceries.
Understanding Costco Food Sales Tax Exemption by State
When you load your cart at Costco, the last thing on your mind is usually the math behind the final price. For individual consumers, however, the standard rules apply, and tax is due at the register.
More About Does costco charge tax on food
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