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.
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.

