Sales Tax Exemption

Over-the-counter medicines are a reliable and affordable way of maintaining wellness for millions of American families. OTC medicines not only treat the symptoms of common ailments but also help prevent a number of costly chronic conditions through products like smoking cessation programs.

The average American household spends approximately $442 on non-prescribed OTC medicines per year while the average senior citizen spends $356 yearly. Many states have already acknowledged the therapeutic value and cost-effectiveness of OTC medicines and allow a retail sales tax exemption for the purchase of these products. Connecticut, Maryland, Minnesota, New Jersey, New York, Pennsylvania, Texas, Vermont, Virginia, and the District of Columbia do not levy sales taxes on OTC medicines.

Our Position

CHPA advocates for policies that support access to over-the-counter (OTC) medicines by exempting them from sales tax.

Browse Sales Tax Exemption Content

A Map of States Considering Exemptions for CMDs

Weekly Voice

State Lawmakers Consider Sales Tax Exemptions for Consumer Medical Devices

Legislation exempting certain consumer medical devices from sales and use tax is under consideration in state legislatures across the country. So far this year, lawmakers in seventeen states have considered bills that would exempt either menstrual products, adult incontinence products, or both.

Apr 7, 2021

Pharmacist with long dark hair assisting customer in dark green shirt

Submission

Letter Regarding H.R. 1922

On behalf of the Health Choices Coalition, we write to applaud efforts to restore OTC medications to full tax-preferred status, eliminating the need to first obtain a prescription.

Oct 22, 2019

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Press Releases and Statements

Statement Regarding OTC Eligibility in FSA/HSA Accounts

CHPA applauds the House of Representatives’ passage of legislation that will restore consumers’ ability to use their HSAs and FSAs to purchase over-the-counter medicines and feminine hygiene products.

Jul 28, 2018

white tablets being shaken from a bottle into a hand

Research Reports

Summary of State Sales Tax Status for OTCs and Dietary Supplements

State by state listing of whether OTC medicines are exempt from state sales tax or not.

Jun 1, 2018

Texas state capitol at night
State & Local Legislative Priorities

Learn more about CHPA's state and local legislative priorities.

three quarter view of U.S. capitol building from below
Federal Legislative Priorities

Learn about CHPA's current slate of federal legislative priorities including OTC regulatory reform, dietary supplement regulation modernization, supply chain and product integrity, and more.

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