Guides
US Farmers Market Vendors' Sales Tax by State: What to Collect
Farmers market sales tax by state varies: raw produce is often exempt, while prepared foods and value-added goods are taxable. Learn what to collect.
What to take away
- US farmers market vendors' sales tax by state starts with one state revenue department, not one federal rule.
- Raw whole produce is often exempt, but value-added items like hot prepared food, bakery goods, or beverages are taxable in many states.
- You need a seller's permit or certificate of authority before you collect any tax, and you must file even in months with zero taxable sales.
- If you collect tax and do not remit, the state can assess the unpaid amount plus interest and penalties, and may revoke your permit.
- Rates and exemptions change, so confirm current figures with the state revenue department before you collect.
At a farmers market, your stall is a retail location in the state where you sell. That creates sales tax nexus. First, find the state revenue department that administers sales and use tax.
Use the IRS directory of state government websites to find your state's correct agency. Each state sets its own tax base, rate, and food exemptions. Never assume one state's pattern applies to the next.
State revenue departments and tax base
Because there is no federal sales tax, the state revenue department has jurisdiction over collection, audit, and enforcement. A seller's permit from that agency is the usual requirement. The Wikipedia overview of sales tax gives background, but the state taxability charts are the binding source.
Named regulators include the California Department of Tax and Fee Administration, the Texas Comptroller of Public Accounts, the New York State Department of Taxation and Finance, and the Washington State Department of Revenue. Each agency publishes taxability charts and food definitions that control your stall.
Other state agencies with public food tax charts include the Ohio Department of Taxation, the Florida Department of Revenue, and the Illinois Department of Revenue.
State-by-state sales tax rates and treatment of common market items
The state rates below are state-level rates as of early 2026. Combined ranges include common local add-ons and vary by city and county.
State-by-state sales tax rates and treatment
| State | State rate (typical combined range) | Raw produce | Value-added and prepared food |
|---|---|---|---|
| California | 7.25% state (7.25% to 10.25% combined) | Exempt in most cases | Hot prepared food taxable; cold bakery items may be exempt |
| Texas | 6.25% state (6.25% to 8.25% combined) | Exempt | Prepared food, candy, and soft drinks can be taxable |
| New York | 4% state (4% to 8.875% combined) | Exempt | Prepared food and heated items taxable if sold for immediate consumption |
| Washington | 6.5% state (6.5% to 10.4% combined) | Exempt | Prepared food taxable; cold grocery items generally exempt |
| Ohio | 5.75% state (5.75% to 8% combined) | Exempt | Food sold for on-premises consumption or hot prepared food taxable |
| Florida | 6% state (6% to 7.5% combined) | Exempt | Prepared food taxable; groceries for home consumption generally exempt |
| Illinois | 6.25% state (6.25% to 11% combined) | Exempt | Grocery food has a 1% state rate; prepared food taxed at full rate |
| Pennsylvania | 6% state (6% to 8% combined) | Exempt | Prepared food taxable; food for home consumption exempt |
| Michigan | 6% state (no local sales tax) | Exempt | Prepared food taxable; food for home consumption exempt |
| Georgia | 4% state (4% to 8.9% combined) | Exempt | Prepared food taxable; food for home consumption exempt |
| North Carolina | 4.75% state (4.75% to 7.5% combined) | Exempt | Prepared food taxable; food for home consumption exempt |
| Arizona | 5.6% state (5.6% to 11.2% combined) | Exempt | Prepared food taxable; food for home consumption exempt |
| Colorado | 2.9% state (2.9% to 11.2% combined) | Exempt | Prepared food taxable; home-rule cities may require separate license |
| Massachusetts | 6.25% state (no local sales tax) | Exempt | Meals taxable; food for home consumption exempt |
| New Jersey | 6.625% state (no local sales tax) | Exempt | Prepared food taxable; food for home consumption exempt |
| Wisconsin | 5% state (5% to 6.75% combined) | Exempt | Prepared food taxable; food for home consumption exempt |
| Oregon | No state sales tax | Not taxed | No state sales tax on prepared food |
| Montana | No state sales tax | Not taxed | Local resort taxes may apply in some areas |
| New Hampshire | No state sales tax | Not taxed | No state sales tax on prepared food |
| Delaware | No state sales tax | Not taxed | No state sales tax on prepared food |
| Alaska | No state sales tax | Not taxed | Local boroughs may levy sales tax |
Source: state revenue department published rate pages and food taxability charts, retrieved February 2026. This table covers common market patterns, not every product code. Some states tax bakery goods when sold with utensils or heated. Others exempt them as food for home consumption.
State Tax by Market Item
Raw produce
- California
- Exempt
- Texas
- Exempt
- New York
- Exempt
- Washington
- Exempt
- Ohio
- Exempt
Value-added examples
- California
- Hot prepared taxable
- Texas
- Prepared food taxable
- New York
- Prepared taxable
- Washington
- Prepared taxable
- Ohio
- Hot prepared taxable
Local city and county taxes may apply on top of state tax in a few places. For example, some Colorado home-rule cities collect their own sales tax and require a separate license. Always ask the market manager which local taxes the market reports on your behalf.
Sales paid through SNAP EBT also have their own record rules. Accept SNAP EBT covers the equipment and settlements for those transactions.
Registering for a seller's permit and filing frequency
Register through your state revenue department, usually online. You provide your business name, address, and estimated taxable sales. Most states issue a seller's permit or certificate of authority at no charge, though a few charge a small fee.
Typical filing frequency depends on annual taxable sales. Common cycles are monthly, quarterly, and annual. California generally assigns quarterly or monthly prepayment. Texas uses monthly, quarterly, or annual. New York uses quarterly or monthly. Washington uses monthly, quarterly, or annual. Your state's registration page lists the exact threshold and due dates.
Labeling rules and sales tax scope
State food labeling rules still apply to value-added foods sold at a farmers market. A compliant package label generally carries the product name, net quantity in both US customary and metric units, and an ingredient list in descending order. It also lists the producer's name and address, plus any allergen statement required by federal law.
For home-produced foods, US cottage food laws decide what you can sell from a home kitchen. Those rules sit outside sales tax.
Sales tax records to keep
- Copies of seller's permit and any local business license.
- Daily gross sales split between taxable and exempt categories.
- Purchase invoices for ingredients and packaging if you buy for resale.
- Exemption certificates for any wholesale sales.
- Filing confirmation from each sales tax return period.
Good sales tax records also support your Schedule C. The same daily totals and purchase invoices become the basis for tax deductions for US farmers at year end.
Sales Tax Records Checklist
- Copies of seller's permit and local license
- Daily gross sales split taxable and exempt
- Purchase invoices for ingredients and packaging
- Exemption certificates for wholesale sales
- Filing confirmation from each tax return period
What happens if you skip it
If you collect sales tax from customers but do not remit it to the state, the revenue department can assess the unremitted tax plus interest and a penalty. In some states, repeated noncompliance leads to revocation of your seller's permit and can bar you from selling at public markets.
The penalty is not the only exposure. A revenue department audit can go back three or four years in many states. You may owe tax out of your own pocket for periods when you failed to collect or failed to keep records.
SNAP and WIC purchases at the stall
Sales paid with SNAP EBT are generally not subject to state sales tax, because federal law prohibits states from taxing SNAP purchases. WIC FMNP fruit and vegetable checks also pass tax-free in most states. However, this does not remove the vendor's duty to report the sale and retain the EBT or FMNP voucher or settlement record. For more on benefit program compliance, see SNAP and WIC FMNP compliance.
