Arkansas shoppers will see lower grocery bills in the new year as the state officially eliminates the 0.125% sales tax on essential food items beginning January 1, 2026. The change, passed under House Bill 1685 and signed as Act 1008, is expected to save residents $10–12 million annually, according to Arkansas Grocers & Retail Merchants Association.
The tax removal applies to staple grocery items such as meat, produce, bread, and pasteurized eggs, helping families stretch their household budgets. While the state grocery tax will drop to zero, city and county sales taxes will still apply, along with taxes on soft drinks, candy, and non-food items.
Goode called the change a “win for consumers,” noting that even small savings matter to families facing rising costs. Additional Arkansas laws taking effect next week include Act 948 restricting state hiring of unauthorized aliens, Act 708 updating unemployment benefit work-search requirements, and Act 631 allowing SNAP recipients to meet work rules through approved volunteer work.
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