I Scream, You Scream, We All Scream for Ice Cream!

Ice cream has long been popular in the United States with around 87 percent of Americans having ice cream in their freezer at any given time. But before you run to the ice cream truck, hold onto your wallet. Whether you'll pay sales tax on top of the price of that ice cream depends on where you live.

Ice Cream Taxes

According to Forbes, in most states, prepared foods to be consumed on or off the premises are taxable, but the rules can be complicated. In Arkansas, for example, ice cream purchased at an ice cream shop is likely taxable but if purchased at a grocery store, ice cream (packaged, not made or served by the seller, including toppings and novelties) is generally eligible for a reduced sales tax rate. In Iowa, the fourth state in the country for ice cream production, milk and milk products, including packaged ice cream are all exempt from sales tax.

If this doesn’t make you want some ice cream, we’re not sure what will!

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