If your weekend barbecue shopping trip feels more expensive this year, you’re not alone.
The biggest culprit? High beef prices, which are up about 14% year over year, according to the Bureau of Labor Statistics. This cost is sometimes referred to as the “burger tax.”
This burger sticker shock comes as shoppers across the U.S. have been dealing with higher grocery bills for years, especially when buying staples like meat, eggs, and dairy products.
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And if you live in a state that still taxes groceries, the number on your receipt is even higher. Here’s more of what you need to know.
Why is the price of beef so high?
While overall grocery prices are up 3.1% over last year due to inflation, the long-term impact is significant. Food prices at home have jumped 27% over the last five years.
And…the United States Department of Agriculture (USDA) expects food-at-home prices to continue rising in 2026, with beef among the categories projected to see some of the strongest price growth.
As a result, feeding 10 guests at a backyard barbecue could now cost roughly $15 (or more) per person. Ground beef, up 70% since 2021 and now reportedly averaging about $6.90 a pound, is responsible for much of that increase.
Declining cattle numbers, high feed costs, drought, and consistent beef consumption in the U.S. all contribute to soaring prices.
How grocery taxes add to your summer cookout
If rising food prices weren’t enough, residents in 13 states face an additional expense because some states continue to tax groceries.
In some cases, that means full statewide tax; in others, reduced rates or hybrid systems that still add a charge at checkout.
For example, Mississippi, Idaho, South Dakota, and Hawaii apply full or near-full state tax rates to grocery purchases. But over the last few years, several states (Oklahoma and Kansas are just two) have eliminated their state-level grocery taxes (though local municipal taxes still apply at checkout in many areas).
Below is what that looks like in dollar terms for a typical cookout basket.
Note: Prior estimates from the Wells Fargo Agri-Food Institute put the cost of a typical 10-person backyard barbecue at about $130. With ground beef prices up roughly 14% over the past year, a comparable cookout basket today would likely be closer to $150, or more, depending on menu choices and substitutions.
States with Statewide Grocery Tax This Year (Assumes a $150 grocery basket for a 10-person cookout)
|
2026 state grocery tax rate |
Estimated state tax on a $150 grocery basket |
|
|
Idaho |
6.0% |
$9.00 |
|
Mississippi |
5.0% |
$7.50 |
|
South Dakota |
4.2% |
$6.30 |
|
Hawaii** |
4.0% |
$6.00 |
|
Tennessee |
4.0% |
$6.00 |
|
Utah |
3.0% |
$4.50 |
|
Alabama |
2.0% (Temporarily suspended, 0%) |
N/A at the state level since temporarily suspended |
|
Missouri |
1.225% |
$1.84 |
*Note: Additional city, county, or transit district taxes may apply on top of these base numbers.
** Hawaii imposes a general excise tax rather than a traditional sales tax.
Here’s where things stand in the remaining states that still technically tax groceries but have eliminated or reduced state-level tax.
Oklahoma: The Sooner State repealed its 4.5% state grocery tax in 2024, though local sales taxes may still apply.
Kansas: Kansas fully phased out its state grocery tax last year after gradually reducing the rate over several years. Local taxes may still be charged on food purchases.
Virginia: Virginia taxes groceries at a reduced rate of 1%, split between state and local governments.
Illinois: Illinois ended its statewide 1% grocery tax as of 2026, but local governments can impose their own grocery taxes, meaning some shoppers still pay tax at checkout.
Arkansas: Arkansas eliminated its state grocery tax in 2025, although some cities and counties continue to levy local taxes on food purchases.
Bottom line: Why some states still tax groceries in 2026
Most states exempt groceries from sales taxes because food is considered a necessity. However, a handful continue to tax groceries at either the full state sales tax rate or a reduced rate.
- Supporters argue that grocery taxes provide a stable source of revenue that helps fund schools, roads and other public services. They also contend that broad-based sales taxes allow states to keep other taxes lower.
- Critics counter that grocery taxes disproportionately affect lower-income households because food purchases consume a larger share of their budgets.
The debate has intensified in recent years as inflation pushed food prices higher, and as a result, several states have reduced or eliminated grocery taxes.
In Alabama, lawmakers have temporarily suspended the 2% state sales tax on most groceries until June 30, to alleviate high food prices, though local sales taxes remain in place. Similarly, as Kiplinger has reported, Illinois and Arkansas have recently eliminated their state-level grocery taxes, while local taxes still apply in some areas.
Notably, some cities are exploring targeted approaches to making food more affordable and accessible. For example, San Francisco’s “Affordable Groceries Act” has recently been proposed by District 5 supervisor Bilal Mahmood.
Modeled after Mayor Zohran Mamdani’s city-owned grocery store initiative in New York City, the San Francisco bill is designed to support new grocery stores in underserved neighborhoods through an affordable grocery fund and a vacancy tax imposed on large chains that close stores in the city.
