Eliminate the GET on groceries

FAQs

  1. How much would this bill save me on my groceries?
    If you spend $1,500 a month on groceries, you’d save about $70 a month because of this bill. 

 

  1. Is food purchased with food stamps already exempt?
    Yes. Federal law prohibits states from taxing purchases made with SNAP a.k.a. food stamps. 

  2. Is Hawaii the only state that taxes groceries?
    No. There are eight states that tax groceries. Five of those tax groceries at a lower rate than they tax other goods. Hawaii is one of three states that taxes groceries at the same rate as other retail sales. 

  1. How much would this bill save total?
    Last year, the Hawaii Department of Taxation estimated that the GET exemption for groceries would save about $240 million and the GET exemption for over-the-counter medications would save about $19 million if exempted immediately. 

Support HB1611

This bill would reduce the state’s 4% excise tax on groceries and nonprescription drugs by 0.5% each year starting Jan. 1, 2027. These necessities would be fully exempt from the tax starting Jan. 1, 2034. 

The bill would also prohibit the counties from levying their 0.5% excise tax surcharge on groceries or nonprescription drugs.

Only Hawaii, South Dakota and Idaho apply the full retail tax to groceries.

Hawaii families spend 32% more on food than the national average.

A tax that is long overdue for repeal

Hawaii is one of three states that taxes groceries at the same rate it taxes all other retail sales. 

Research shows that taxes on groceries increase food insecurity and decrease spending on meals at home. Meanwhile, a report from the Hawaii Food Bank estimated that almost a third of Hawaii households — equal to about 437,000 people — face food insecurity.

In the past, Hawaii lawmakers have introduced bills to exempt groceries, healthcare and over-the-counter medications from the excise tax, but to no avail.

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