Nineteen states and the District of Columbia tax candy differently from other food and grocery products. These taxes on confectionery products single out our member companies’ products from other foods, increase consumer prices, and burden confectionery retailers, distributors, and manufacturers. In tandem with in-state allies, NCA discourages additional tax burdens on confectionery products by highlighting candy’s unique role in the United States and our industry’s place as an economic engine.
How do states decide to tax candy and other grocery products?
According to the Tax Foundation, grocery tax exemptions reduce the cost of products deemed necessary, forcing states to decide which products are essential. When foods are categorized as essential based solely on nutritional value, candy is often one of the first products taxed.
By assigning additional taxes to certain products, states unfairly label products as “good” or “bad.” NCA advocates for consumers’ freedom to choose what products best suit their families’ needs rather than have the products deemed “essential” chosen for them. Enjoying a confectionery treat as part of a happy, balanced lifestyle has contributed to wellness in other respects by supporting emotional well-being, sparking opportunities for connection with friends and family, and bringing small moments of joy to consumers’ lives.