Do You Pay Sales Tax on Girl Scout Cookies? It Depends!

It’s Girl Scout Cookie season! That time of year when we happily stock up on Thin Mints, Samoas, and Tagalongs, all while supporting a great cause. But have you ever wondered: Do you pay sales tax on Girl Scout Cookies? The answer? It depends on where you live!

Sales tax is determined at the state and local levels, which means tax treatment for Girl Scout Cookies varies across the country. Here are some key factors that determine whether or not you’ll pay tax on your cookie purchase:

1. Nonprofit Exemption

Many states exempt nonprofit organizations from collecting sales tax on fundraising activities. Because Girl Scouts councils are tax-exempt organizations, some states allow them to sell cookies tax-free.

2. Taxable Food Laws

Some states prepare or package foods, while others exempt groceries. If cookies are taxable foods, sales tax may be required.

3. Who’s the Seller?

Different tax rules may apply if the local Girl Scout council is considered the Seller. Some states exempt fundraising sales by nonprofits, while others require them to collect and remit tax.

Each state has its own rules, but here are a few examples:

• California: No sales tax—Girl Scout councils are tax-exempt nonprofits.
• Texas: No sales tax—fundraising sales by nonprofits are tax-free.
• New York: No sales tax—nonprofits can sell tax-free if they qualify for an exemption.
• Hawaii: Sales tax (technically General Excise Tax) applies to cookie sales.
• Alabama: Sales tax applies unless the council has an exemption.

Want to know if you’ll be paying sales tax on your Girl Scout Cookies? Here’s what you can do:

• Check your state’s Department of Revenue website.
• Ask your local Girl Scout council.
• Look at your receipt—if sales tax applies, it will be listed.

Whether or not you pay tax, 100% of the proceeds stay local, funding programs that help Girl Scouts learn leadership, business skills, and financial literacy. So, no matter the tax rules in your state, buying cookies is always a sweet deal! 🍪

Did you pay sales tax on your Girl Scout Cookies this year? Let us know in the comments!

About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.