Tax on a Bag of Chips
The amount of tax on a bag of chips depends on the location and type of purchase. In most cases, the tax rate is based on the state or local sales tax rate. For example, in California, the sales tax rate is 7.25%, so the tax on a bag of chips would be 7.25% of the purchase price.
In some states, certain types of food items may be exempt from sales tax. For example, in New York State, food items that are considered “essential” are exempt from sales tax. This includes items such as bread, milk, eggs, fruits and vegetables. Therefore, if you purchase a bag of chips that falls into this category, it would not be subject to sales tax.