One of the most expected days of the year is on its way here.  And most of the Americans are rushing to get more and more packages of candies, in order to satisfy the wishes thousands of children. And of course, the variety of products in this segment is really mindboggling. However, a decisive factor is how much tax you are going to pay for purchased candies. As we know, the tax on the same product can vary in each of the states.

In Illinois, residents pay higher taxes on commonly known Reese’s gummy worms, and Hershey’s, than for Twix and Twizzlers. And of course, you, as a shopper, may wonder “What’s going on?” But the answer is pretty simple, since the Reese’s worms and Hershey’s bars are candies, and the second two are not. This process is a little bit complicated for the common buyer, since it is too hard to differ which product is considered to be candy and which is not.

About Sales Tax

It is commonly known, that the main source of revenue for most of the states comes from sales taxes. Nearly a third of the state’s revenue comes from the sales taxes. As a result, most of the taxpayers have to change their preferences in order to avoid paying sales tax. Some of the states in their turn, reduce the amount of sales taxes on some products categories. Thus, the state of Illinois has drastically reduced the sales tax on the products in the grocery category from 6.25 to 1%. California has decided to choose a completely different way, and exempt the grocery niche completely. So, keep in mind, if the bar contains flour, then you have to pay lower tax for it.  Thus, Mars and Snickers are taxable, but Kit Kat is not, since it is not a candy.


Is It Candy?

So, those candies which don’t contain flour, are considered to be candies. Confusing! If there is flour among the ingredients, then it is considered to be a baking product. So, if the product is formed in drops or bars, in most of the cases it is tax exempt. Therefore, if you want to avoid paying sales tax on candies, your main mission is to find out all the information about the ingredient of that product. The flour is kind of indicator for you, once you notice it in the candy’s ingredients you can confidently buy this candy.


The theme of taxes will always remain one of the most complicated and questionable aspects of our life.  However, if you do not want to face any unexpected taxes within your operation, you can reach out Prestige Auditors, and we will provide you with a full guideline on all the taxable products and services in your unique state. Moreover, if you do not have enough experience in tax filing, we can assist you in obtaining all the necessary documentation and file your taxes without any delays.