Are Coffee Beans Taxable in California

by Paul E Nicholson  - November 2, 2022

The agricultural tax rate in California is 1.5% but coffee beans are not taxable. Coffee beans are considered food for human consumption and are thus exempt from taxation. There are also no taxes on the sale of coffee products made from those beans.

The only time you would need to pay tax on coffee beans is if you were buying them for resale (wholesale) or if you were importing them into the state.

If you're a coffee lover, you might be wondering if coffee beans are taxable in California. The answer is yes! Coffee beans are subject to sales tax in California. So, when you're buying your beans, make sure to factor in the cost of taxes.

Non Taxable Food Items in California

When it comes to food, there are always going to be items that are taxable and items that are not. In the state of California, there are a few different non-taxable food items. These items include: – Baby food – Flour – Sugar – Milk These are just a few of the many non-taxable food items in California. When it comes to taxability, it is always important to check with your local government to see what is considered taxable and what is not.

What Items are Not Taxed in California?

Sales taxes in California are some of the highest in the United States, with a statewide rate of 7.25% and an average effective rate of 8.48%. However, there are certain items that are exempt from sales tax, including groceries, prescription drugs and most clothing.

Here is a more complete list of items that are not taxed in California:

Grocery items: This includes any food that is considered to be necessary for human sustenance, as well as pet food. Alcohol and tobacco products are not included in this exemption.

Prescription drugs: As long as the prescription is filled by a licensed pharmacist, any medication prescribed by a doctor is exempt from sales tax. This also includes over-the-counter drugs that are prescribed by a physician. 

Most clothing: Clothing items under $100 each are exempt from sales tax, with some notable exceptions such as fur coats and wedding apparel.

Used goods: Items that have been previously owned and used are not subject to sales tax, regardless of their value.

Is Coffee at Starbucks Taxable?

Yes, coffee at Starbucks is taxable. In the United States, federal and state governments impose taxes on the sale of coffee. The tax rate varies depending on the type of coffee bean and the state in which the coffee is sold. 

For example, Arabica beans are taxed at a higher rate than Robusta beans. In addition to the tax on the sale of coffee, Starbucks also pays taxes on its income and property. The company’s effective tax rate was 33% in fiscal year 2016.

Are Roasted Coffee Beans Gst Free?

Yes, roasted coffee beans are GST free. The current GST rate for coffee is 10%, which was introduced on 1 July 2017. However, there are some exceptions to this rule.

For example, if you purchase roasted coffee beans that have been packaged for sale, the GST will be applied to the purchase price.

Why is There No Tax on Starbucks?

In the United States, coffee is taxed by both federal and state governments. However, Starbucks is not subject to this tax because it qualifies as a grocery store. Grocery stores are exempt from federal excise taxes, which are levied on specific goods like alcohol and tobacco.

In addition, most states exempt groceries from sales tax. So even though you may pay sales tax on your morning bagel at the corner bakery, you won’t pay it on your Starbucks Venti Pike Place Roast. Interestingly, the U.S. government actually subsidizes coffee growers with a program called the Coffee Commodity Purchase Program.

The program was created during the Great Depression to stabilize coffee prices and farmers’ incomes. Since its inception, the program has bought millions of pounds of coffee beans from farmers around the world – all without passing on the cost to consumers in the form of higher taxes.


In California, coffee beans are not subject to state sales tax. However, there may be local taxes that apply.

Are Coffee Beans Grown in the United States

Paul E Nicholson

Hey guys! You can call me Paul E Nicholson.
I spend most of my leisure time Coffee and tea
Let’s share some of them one by one in this blog For Coffee and tea

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