Washington Food Tax: What Is and Isn’t Taxed?

Washington’s approach to sales tax involves a broad exemption for most grocery food items, a policy that originated with a voter initiative in 1977. This general rule means that the state’s 6.5% sales tax, plus any applicable local taxes, is not added to the price of most foods you buy at the supermarket. While this seems straightforward, the state’s tax code contains numerous specific exceptions and detailed rules. These nuances create a complex system where some items on a grocery bill are taxed while others are not, leading to potential confusion for shoppers.

Understanding Washington’s General Food Exemption

The foundation of Washington’s food tax policy is the exemption for “food and food ingredients.” According to the Washington State Department of Revenue, this category includes substances sold for ingestion or chewing by humans for their taste or nutritional value. This definition covers the vast majority of items that constitute a typical grocery list. Shoppers can expect items like fresh fruits and vegetables, raw meat, poultry, and fish to be exempt from sales tax.

This exemption extends to other staple goods that fill a pantry. Dairy products such as milk, cheese, and yogurt are not taxed, nor are eggs and bread. The same rule applies to basic cooking and baking ingredients that are fundamental to meal preparation at home. This includes items like flour, sugar, cooking oils, and spices, all of which fall under the state’s definition of non-taxable food ingredients. Candy is also considered a food ingredient and is exempt from sales tax.

Taxable Food and Beverage Categories

Despite the broad exemption for groceries, Washington law specifies several categories of food and beverages that are subject to retail sales tax. These exceptions are clearly defined and often relate to how a food is sold or what it contains.

Prepared Foods

A taxable category is “prepared foods.” An item is considered a prepared food if the seller has cooked, heated, or combined two or more ingredients for the customer. This includes hot foods from a deli counter, items selected from a salad or olive bar, and made-to-order sandwiches. The tax also applies if the seller provides utensils, such as a fork, spoon, or plate, with the food. The inclusion of utensils is a determinant; for example, a pre-packaged container of potato salad sold by weight without utensils might be exempt, but a single-serving container sold with a fork is taxable.

Soft Drinks

The state also taxes “soft drinks,” which are defined as any sealed, ready-to-drink beverages containing natural or artificial sweeteners. This definition captures a wide array of popular drinks, including sodas, sweetened iced teas, and sports or energy drinks. Beverages that contain milk, milk products, or milk substitutes as an ingredient are not classified as soft drinks and are therefore exempt. Similarly, drinks that contain more than 50% fruit or vegetable juice by volume are also not taxed.

Dietary Supplements

Dietary supplements are another category subject to sales tax. These are products intended to supplement the diet and are typically identified by a “Supplement Facts” panel on the label, as required by the Food and Drug Administration. This category includes a wide range of items such as vitamins, minerals, and herbal supplements. Their classification as supplements makes them taxable under state law.

Tax Rules for Specific Purchasing Scenarios

The application of sales tax on food extends beyond the grocery store aisle and into various purchasing environments. How and where you buy food can directly impact whether you pay sales tax.

Restaurants and Similar Establishments

When dining out, the rules are clear: virtually all food and beverages sold by restaurants, taverns, and caterers are subject to sales tax. This is because these items almost always fall under the definition of “prepared food.”

Food Delivery Services

The tax applies to the prepared food items in an order from services like DoorDash and Uber Eats, just as it would if they were purchased in a restaurant. In many jurisdictions, the delivery fees and other service charges associated with the order may also be subject to sales tax. This means the entire cost of the transaction, not just the food itself, is often taxable.

Vending Machines

All food and beverages sold through vending machines are an exception to the general grocery exemption and are subject to sales tax. Hot prepared foods and soft drinks are fully taxable. Other items sold from a machine, such as candy or bottled water, are also taxed. The tax is typically included in the purchase price displayed on the machine.

Purchases with SNAP/EBT

A significant exception to the tax rules applies to purchases made with federal Supplemental Nutrition Assistance Program (SNAP) benefits, often distributed via an Electronic Benefit Transfer (EBT) card. Food items that are eligible for purchase with SNAP benefits are exempt from sales tax. This exemption holds true even for items that would otherwise be taxable in Washington, such as soft drinks.