State Grocery Tax Cut to Take Effect August 29

The largest tax cut in state history will take effect at the end of this month, and all Oklahomans will benefit every time they go grocery shopping.

On August 29, Oklahoma will eliminate the state portion of the grocery sales tax — a 4.5% tax cut that will hopefully provide all residents some immediate relief from rising food prices and high inflation.

When you look at your grocery receipt, you may still see some taxes charged by local governments. Municipalities set local grocery taxes to fund their government operations, and these taxes will continue after the state portion of the grocery tax is eliminated.

Some products sold in the supermarket, including alcoholic beverages, certain medications, tobacco products and some prepared foods, will remain subject to state taxes after August29.