Kit Kat, Twix are cheaper in Illinois because of tricky tax on treats
Halloween shoppers can stay clear of Illinois’ spooky candy tax if they know the right candy to buy.
When it comes to Halloween treats, Illinois is definitely a flour-friendly state based on how it taxes the candy in your Halloween bag after.
Treats containing flour such as Kit Kats, Twix and Snickers are all considered groceries, not candy, and are taxed at a lower rate than are other items designated “candy” and prepared without flour, such as Starburst, Skittles and M&Ms.
The absence of that one ingredient can cost you more than six times the sales taxes. Candy is taxed at 6.25%, groceries at 1%.
Illinois shoppers anticipating a series of knocks on the door might just save themselves some candy cash depending on what they decide to hand out to trick-or-treaters. Buying Twix bars instead of Hershey’s milk chocolate bars could give you something less to scream about at the checkout line.
This candy conundrum is confusing because flour and flourless treats are found in the same aisle at stores but taxed differently.
Michigan and Arizona consider all candy groceries. They’re among the 37 states that don’t tax groceries at all. Among the 10 largest states by population, Illinois is the only one with a grocery tax. While the grocery tax is going away at the state level, some local governments have already stepped in to reinstate it. While not exactly a jump scare, this hardly brings a sigh of relief to an overtaxed public.
Shoppers wanting to contribute a little less to murky bureaucracy that’s always lurking in the shadows can do so by checking ingredient labels as they stock up for the big night.