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FAQ Articles

Is the sale of food subject to sales tax?

Generally, food sold for home consumption is exempt from sales tax while prepared food is taxable. For example, meals or prepared snacks purchased at a restaurant, convenience store or concession stand are subject to sales tax even if the prepared food is taken out and consumed elsewhere.

Most food products purchased in grocery stores are exempt from sales tax. The sales of candy, chewing gum, soft drinks, flavored water, including fruit drinks containing less than 50 percent pure fruit juice are taxable. Bakery items are exempt from sales tax unless they are sold in a heated state and served with eating utensils. All catered food is prepared food and is subject to tax.

Please refer to the Grocery Stores, Convenience Stores and Delicatessens guideline for additional information regarding food sales.

nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Ryan Rauschenberger
Tax Commissioner
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FAQ Articles

Is the sale of food subject to sales tax?

Generally, food sold for home consumption is exempt from sales tax while prepared food is taxable. For example, meals or prepared snacks purchased at a restaurant, convenience store or concession stand are subject to sales tax even if the prepared food is taken out and consumed elsewhere.

Most food products purchased in grocery stores are exempt from sales tax. The sales of candy, chewing gum, soft drinks, flavored water, including fruit drinks containing less than 50 percent pure fruit juice are taxable. Bakery items are exempt from sales tax unless they are sold in a heated state and served with eating utensils. All catered food is prepared food and is subject to tax.

Please refer to the Grocery Stores, Convenience Stores and Delicatessens guideline for additional information regarding food sales.

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