Idaho is among only a few states that fully taxes groceries.
For years, liberty Republicans have sought full grocery tax repeal. Leadership has blocked them at every turn. The one time they did get a bill to the governor’s desk, Butch Otter vetoed it.
Repeal is an uphill climb, but it remains the right thing to do.
In that spirit, I think it’s useful to debunk the leading argument against repeal.
Some Revenue-First Republicans tell us that Idaho will lose out on $30 million in tax revenue from tourists who buy groceries in the Gem State when they visit.
That argument holds no water for me. Here’s why:
1. Tax Relief for Idaho Families Should Come First: Conservatives believe in putting hardworking Idaho families first—not the government. The grocery tax is a regressive tax that hits low- and middle-income families the hardest. Idahoans shouldn’t be taxed for feeding their families, especially during times of inflation. Protecting $30 million in spending by taxing milk and bread is morally backward. Let’s fund the government responsibly—without punishing people at the checkout line.
2. Idaho Doesn’t Have a Revenue Problem, It Has a Spending Priority Problem: Idaho’s state budget has grown dramatically in recent years. Idaho taxes groceries so it can spend $100 million to give free college handouts, and spends hundreds of millions to provide free healthcare to single, able-bodied adults. Huh? Conservative budgeting means cutting waste and reprioritizing—not holding essential services hostage to justify keeping a tax on food.
3. Tourists Shouldn’t Justify Permanent Taxes on Residents: Relying on tourists and non-residents to justify permanent taxes on Idahoans is short-sighted. Idaho doesn’t tax hotel rooms or rental cars because it wants to tax its own people—it does so to target visitor spending. But groceries are a daily necessity for Idaho families. If policymakers want to tax non-residents, there are better tools than taxing the food every Idaho family needs to survive.
Besides those three points, consider that other states that are much bigger tourist hot spots – California, Hawaii, and Florida – don’t tax groceries. Why is Idaho so different?
Keep in mind that the $19 million in grocery tax revenue generated by tourists represents less than 1% of Idaho’s state budget.
Idaho’s grocery tax is wasteful and silly. The Legislature ought to repeal the tax once and for all in 2026.