Food tax will end for 13 million Americans – families will save $130 a year thanks to move to ‘reduce inflation’

The GROCERY STORE tax is set to end for 12.5 million Americans thanks to a change in the law.

This will help the average family of four save $130 a year on their groceries.

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The food tax in the state of Illinois will be eliminated as part of the 2025 budget.

Lawmakers approved a state budget for next year that will eliminate the existing 1% tax on groceries.

The budget needs to be signed by Governor JB Pritzker before the changes can be implemented.

It is good News for Illinois’ 12.5 million residents.

HOW MUCH WILL YOU SAVE?

The average family of four spends $13,055 a year on groceries, according to Rocket money.

Therefore, the 1% tax reduction should lead to a savings of $130 for families in the Prairie State.

The food tax was previously suspended from July 2022 to June 2023.

Governor Pritzker proposed repealing the tax again when he presented his budget proposal earlier this year.

“It’s yet another regressive tax that we simply don’t need,” he said during his State of the State and Budget address in February.

“If you reduce inflation for families, 4% to 3%, even if it only puts a few hundred dollars back into families’ pockets, it’s the right thing to do.”

TAX TIMES

Illinois is one of the few states that collects sales taxes on food, along with Alabama, Kansas and Missouri.

Consumer taxes on grocery products hit poorer consumers hardest, some economists believe.

“Low-income families feel this the most,” said Marco Guzman, senior policy analyst at the Institute on Taxation and Economic Policy. AARP.

The state with the highest food tax is Mississippi.

In the Magnolia State, shoppers pay 7% to the state at checkout.

That means a $300 grocery bill costs an extra $21.

On the other hand, many states with high income taxes do not tax food, including California, New York and Washington.

Kansas is expected to remove its existing 2% food tax in 2025.

Here are three traps retailers are using to get you to spend more.

And read five ways to reduce your grocery bill.