WEST MEMPHIS, Ark. (WMC) – Arkansas shoppers will no longer pay state tax on groceries starting Thursday as the Grocery Tax Relief Act goes into effect January 1, 2026.
Arkansas joins the majority of states by eliminating its state grocery tax, leaving just nine states with the tax. Tennessee and Mississippi continue to tax groceries at the state level.
Arkansas currently has one of the lowest grocery tax rates among the ten states that taxes food purchases, at just an eighth of a cent for every dollar spent. Despite the low rate, the tax cost Arkansas families roughly $120 annually.
The Governor’s Office says eliminating the tax will save Arkansans nearly $11 million annually. Shoppers expressed enthusiasm about the change.
“I’m looking to put more money in my pocket,” said Shellea McDougal, a West Memphis resident. “Every penny turns to nickels and dimes and quarters and dollars.”
Lorrie Plunkett, an Arkansas shopper who spends about $400 weekly feeding a family of five, said the tax elimination “will be very helpful.”
The tax relief is expected to draw more shoppers from neighboring states where grocery taxes remain in place. Tennessee maintains a 4 percent state grocery tax rate. Mississippi has one of the nation’s highest grocery tax rates at 5 percent.
“It’d bring a lot more people, bring business here because people would be coming here to shop, and businesses would boom around here,” said Hunter Grant, an Arkansas shopper.
The grocery tax relief eliminates only the state tax. County and municipal grocery taxes remain in place. West Memphis maintains a local grocery tax rate of 4 percent, compared to 6.75 percent in Memphis.
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