Sales tax by state: are dietary supplements taxable?
by January 28, 2024
Please note: This blog was originally published in 2021. It’s since been updated for accuracy and comprehensiveness.
If you sell dietary supplements, you have likely already faced the question of whether your products or taxable or not.
Some states consider supplements grocery items because they often have “nutrition facts” labels rather than “supplement facts” or “drug facts” labels.
Other states lump dietary supplements in with other generic “tangible personal property” and consider them to be fully taxable.
And still other states make a distinction between prescription and nonprescription dietary supplements when it comes to sales tax. For example, Alabama considers dietary supplements non-taxable but only if they are prescribed by a licensed medical practitioner.
And last but not least, dietary supplements are not always pills. They can come in the form of powders or even bars. When selling a product, determine if it makes claims such as alleviating a vitamin deficiency. If it does, it may look like a food bar, but actually be taxed as a supplement.
If you sell dietary supplements, you’re probably scratching your head. Are you required to collect sales tax on dietary supplements in your state?
The list below will point you in the right direction when it comes to the taxability of dietary supplements. Of course, this post is for general purposes only and we always recommend speaking with the state’s taxing authority or a vetted sales tax expert if you have specific questions about the taxability of your product.
List of states where dietary supplements are tax exempt or taxed at a lower rate
If a state isn’t on the list, they do not specify any special tax treatment for dietary supplements as of this writing.
Connecticut – Dietary supplements are tax exempt (Source)
Florida – Dietary substitutes, including herbal supplements, are not taxable. This includes “food supplements” and “meal replacement powders and drinks” (Source)
Illinois – Dietary supplements that meet Illinois’ definition of “food” are taxed at the low (currently 1%) Illinois sales tax rate for grocery items. (Sources: a) Letter ruling, b) Illinois code)
Massachusetts – Some “edible” dietary supplements are considered food and not subject to sales tax. However, other dietary supplements sold as “medicines, tonics,” or in “liquid, powdered, granular, tablet, capsule, lozenge and pill form” are not considered food products and are subject to sales tax. Read more in Massachusetts Directive 00-6 or the Massachusetts law code section 64(h).
Maryland – Dietary supplements are considered grocery food and are tax exempt (Source)
Michigan – Michigan considers dietary supplements “food and food ingredients” and exempts them from sales tax. (Source)
New Jersey – Dietary supplements are considered food and exempt from sales tax (Source)
New York – If a product qualifies as dietary food or health supplement, it is exempt form New York sales tax regardless of the form in which it’s sold (solid, liquid, pill, powder, etc.) (Source)
Pennsylvania – Food supplements such as vitamins and therapeutic nutritional supplements sold from “other than a caterer or established selling ready-to-eat food” are considered non-taxable in Pennsylvania (Source)
Texas – Dietary and nutritional supplements are exempt from sales tax (Source)
Utah – Dietary supplements with a nutritional label are considered grocery food and are taxed at Utah’s reduced grocery sales tax rate. At the time of this writing, that sales tax rate is a combined 3% across Utah. (Source)
Vermont – Dietary supplements labeled with the “supplemental facts” box are non-taxable in Vermont. (Source)
West Virginia – Sales of dietary supplements labeled with the “supplemental facts” label are not subject to sales tax (Source)
Wyoming – Dietary supplements labeled with a “supplemental facts” box are non-taxable (Source)
Frequently asked questions
My products have a “drug facts” and not a “nutrition facts” or “supplement facts” label. Are they taxable?
These products would likely be taxed as a prescription or nonprescription drug. You can find out more about the taxability of prescription and nonprescription drugs here. Note that some states may also tax certain drugs, such as medicine for animals, oxygen therapy or insulin, differently.
I’ve read the law and I’m still not sure if my products are taxable or tax exempt. What can I do?
If you are unsure whether what you are selling is taxable, we recommend speaking with the state or contacting a vetted sales tax expert.
