Kit Kat, Twix cost less because Halloween treat taxes are tricky in Illinois
A spooky statute in Illinois says sweets made with flour aren’t candy. Halloween shoppers can dodge Illinois’ higher candy tax by checking ingredients.
Illinois shoppers can save themselves some candy cash this Halloween depending on what they decide to give trick-or-treaters.
Illinois only considers treats “candy” if they’re prepared without flour, such as Starburst, Skittles and M&Ms. Sweets containing flour such as Kit Kats, Twix and Snickers are all considered groceries, not candy.
The one ingredient can cost you more than six times the sales taxes. Candy is taxed at 6.25%, groceries at 1%. Buying Twix bars instead of Hershey’s milk chocolate bars could save you extra money for trick-or-treaters.
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.
Illinois is projected to bring in nearly $11 billion in sales taxes for fiscal year 2023, but shoppers wanting to contribute a little less to our bewitching bureaucracy can do so by checking ingredient labels.