Sales Tax on Food in Washington DC: What You Need to Know

Is there sales tax on food in Washington DC?
Washington law exempts most grocery type food from retail sales tax. However, the law does not exempt “”prepared food,”” “”soft drinks,”” or “”dietary supplements.”” Businesses that sell these “”foods”” must collect sales tax. In addition, all alcoholic items are subject to retail sales tax.
Read more on dor.wa.gov

If you live in or are visiting Washington, DC, and want to go out to eat or shop for groceries, you might be wondering if there is a sales tax on the items you buy. Yes, with a few exceptions, is the response.

There are certain exclusions from the general 6% sales tax on food in Washington, DC. For instance, you are not required to pay sales tax when you buy foods that are categorized as basics, such as bread, milk, eggs, fruits, and vegetables. You will be required to pay sales tax if you buy prepared food, like a sandwich or a hot meal.

It’s also important to keep in mind that your food purchase in DC may be subject to some additional taxes. For instance, there is a 5.75% tax on sugary drinks and a 10% tax on the sale of alcohol. Therefore, you must account for the additional tax if you intend to purchase a bottle of wine to accompany your meal.

The DC sales tax rate for the majority of things stays at 6% in 2021, however there are some adjustments to the tax rate for some items. For instance, starting on October 1, 2020, the tax rate for commercial parking services increased from 18% to 22%.

In addition to the sales tax, Virginians dining out should prepare to pay a restaurant tax. The municipal restaurant tax rate in Virginia varies, but it normally ranges from 4% to 6%. The cost of the meal as a whole—including the price of the food and beverages but excluding any sales taxes—is subject to this tax.

Moving on to Maryland, there are a few exclusions to the standard 6% food tax rate. For instance, you are not required to pay sales tax when you buy foods that are categorized as basics, such as bread, milk, eggs, fruits, and vegetables. You will be required to pay sales tax if you buy prepared food, like a sandwich or a hot meal.

In conclusion, you should anticipate to pay sales tax on the majority of things, including prepared food, if you’re planning to buy food in Washington, DC. There might also be additional taxes on alcoholic beverages or sugary drinks. You must take into account both the sales tax and the restaurant tax while dining out in Virginia. In Maryland, the standard food tax rate is 6% with exemptions for basic commodities.

Leave a Comment