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Halloween tax scare: state taxation of candy and other food

October 31, 2020
Cat silhouetted against full orange moon_Bessi via Pixabay

Image by Bessi via Pixabay

Happy Halloween! It's a special one, as it comes — despite the pumpkin-hued image above — on a Blue Moon, the second full moon in a month.

Celebrations this year also will be different for most of us. The COVID-19 pandemic means that Oct. 31 festivities will be really, truly scary during a time when mingling with strangers is traditional. We're likely to see more face masks than Michael Myers or Scream masks.

But regardless of how or where you'll celebrate All Hallows' Eve, one thing likely will remain the same. There will be candy. Lots and lots of candy.

Halloween candy bowl

Our Halloween candy bowl

And in most places where that candy is purchased, the state tax collector gets his or her due.

That Halloween tax connect is why The Tax Foundation's look at the tax treatment of candy (and soft drinks and other foodstuffs) gets this week's Saturday Shout Out.

"Forty-five states and the District of Columbia levy a state sales tax. Of those, 32 states and the District of Columbia exempt groceries from the sales tax base. Twenty-four states and D.C. treat either candy or soda differently than groceries," writes Janelle Cammenga, a Tax Foundation policy analyst.

I'll let your read Janelle's analysis at your leisure, but the Washington, D.C.-based tax organization's map below gives you an idea of where your state stands on food — and candy — taxation.

Sales-tax-treatment-of-groceries-candy-and-soda-as-of-january-1-2020-Tax-Foundation

Have a happy and extra coronavirus safe Halloween!

Bonus candy tax coverage: Check out my Tumbling Taxes post with its candy tax video.

You also might find these items of interest:

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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