Let’s be honest, every person’s good mood is sponsored by coffee. Coffee makes our life better, and it doesn’t matter whether it is cold or hot, you drink it in a cozy coffee shop, or just take it to go. However, the rules change when it comes to taxes. Did you know that aspects such as your coffee’s temperature and the sweetness may affect its taxability?  Interested? Then, make some coffee, and keep reading our blog, since we are going to talk about coffee’s taxability in different states. However, before jumping into the boring theme of taxes, we are going to tell you about several interesting facts concerning coffee.

Interesting Coffee Facts!

  • Coffee beans are seeds, which can be eaten as food!
  • Generally, there are two types of coffee: Robusta and Arabica.
  • The biggest part of the world’s coffee comes from Brazil!
  • In Italian, espresso means pressed out.
  • One of the most expensive coffees costs nearly $500 a pound.
  • Be careful! You can overdose on coffee!
  • The biggest fans of coffee live in Finland.
  • Those who consume coffee every day, live longer.
  • Starbucks opens nearly two new shops every day!

Now, let’s return to our main topic, and try to figure out the taxability of coffee in several states.


Generally, in this state, tax applies to hot coffee; however, if the coffee is not prepared, then it is considered tax exempt.


Sales of hot coffee in this state is taxable, and it doesn’t matter whether you buy it from a coffee shop, grocery store or vending machine. The fact is that sales of all types of hot drinks are taxable in Pennsylvania. However, here comes the most interesting fact: if you want to buy cold coffee, you should not pay taxes for it. That’s because cold drinks are tax exempt in Pennsylvania, so, if you want to get warm a cup of hot coffee, and don’t want to overpay for it, then an immersion heater can help you.


The same rule goes for the state of California. That’s because sales of all types of prepared hot foods are taxable in this state, while sales of cold prepared food are tax exempt. However, there are several tricky points that you should be aware of. Look, hot coffee is considered to be a hot prepared food; however, it is exempt when you buy it separately. Usually, if you buy hot coffee with some cold prepared food, you have to pay sales tax for your entire purchase. If you want to learn more about sales tax, read our blog about sales tax and how to get tax exempt.


We have tried to share our knowledge concerning coffee with our readers. That’s because coffee continues to be one of the most popular and widely-consumed drinks. By drinking coffee every day, you will not only get a portion of energy, but also improve your health.

If you are confused, don’t worry, you are not alone. Reach out to Prestige Auditors, and we will gladly provide you with all necessary information concerning taxes. By working with our team, you can be sure that everything referring to taxes is going smoothly in your business. Additionally, we will help you in your business formation, and help you prepare for any audits within your business. By visiting our website, you will find more information about services provided by our company.