Drugstores and Pharmacies

Tax Bulletin ST-193 (TB-ST-193)

Printer-Friendly Version (PDF) Issue Date: August 5, 2014

Introduction

This bulletin explains how sales tax applies to items commonly sold by drugstores and pharmacies. See also Tax Bulletins Convenience Stores and Bodegas (TB-ST-135), and Coupons and Food Stamps (TB-ST-140). Information regarding sales of medical equipment and prosthetic devices can be found in Publication 822, Taxable Status of Medical Equipment and Supplies, Prosthetic Devices, and Related Items.

Drugs and medicines

Sales of drugs and medicines are not taxable if the drug or medicine is intended for internal or external use in people to diagnose, cure, treat, or prevent illness or disease. This includes both prescription and nonprescription drugs and medicines that are recognized by the United States Pharmacopeia, the Homeopathic Pharmacopeia of the United States, or the National Formulary.

Prescription drugs and medicines are used under the supervision of a licensed physician and must be obtained from a licensed pharmacist. They include:

antibiotics
narcotics
controlled substances

Nonprescription or over-the-counter drugs and medicines can also be purchased exempt from sales tax. They include:

pain relievers (aspirin, ibuprofen, etc.)
antacids
cough and cold remedies
dandruff shampoo and treatments

Other medicinal products used internally or externally by humans for the preservation of health, and products (other than food) that are intended to affect the structure or a function of the human body, are also exempt from sales tax. These products, which are not ordinarily considered drugs or medicines, include:

acne preparations
contact lens preparations
eye drops
laxatives
lip balm intended to treat or prevent chapped lips
petroleum jelly that is uncolored and unscented
products that treat nicotine withdrawal symptoms
products that prevent or treat athlete’s foot or other fungus infections
products intended to treat sunburns
sunscreens
vaginal creams, foams, ointments, and jellies that treat specific medical conditions

Family planning

Products sold to reduce the chance of pregnancy are not taxable. These products may be sold by prescription or over the counter.

Examples of these items include:

birth control pills
condoms
contraceptive creams, foams, jellies, or sponges
diaphragms
vaginal suppositories

Cosmetics and toiletries

Cosmetic and toiletry products are used for cleansing, personal grooming, beautifying, or altering your appearance. These products are taxable even if they contain some medicinal ingredients. See the Cosmetics and toiletries chart below.

General merchandise

Many drugstores and pharmacies sell a variety of general merchandise that is generally taxable. See the General merchandise chart below.

Food and beverages

Drugstores and pharmacies often also sell a variety of food and beverages. See Tax Bulletin Listings of Taxable and Exempt Foods and Beverages Sold by Food Stores and Similar Establishments (TB-ST-525) for detailed information on sales of food and beverages.

Insurance coverage

The taxability of an item does not change when payment is made under medical insurance coverage, including:

personal insurance,
an employer-sponsored medical plan,
Medicaid, or
Medicare.

Nontaxable items remain nontaxable regardless of the method of payment. Taxable items remain taxable even when paid for under insurance coverage.

The charts below list examples of:

taxable cosmetics and toiletries; and
taxable general merchandise commonly sold by drugstores and pharmacies.

Cosmetics and toiletries (taxable except as noted)
after-shave products antiperspirants and deodorants astringents baby powder, talcum powder bath crystals, salts, milks, etc. bleaching creams and lotions bouquet liquids breath fresheners bronzers bubble bath creams and lotions, including: beauty cream body lotion cleansing creams face cream hand lotion moisturizers cocoa butter * cold creams colognes depilatories eau de cologne essences and extracts exfoliants face packs freckle remover glycerin * hair care products, including: hair brushes, combs colorings, dyes, henna gel, mousse, hairspray texture cream straightening products	lavender make-up, including: mascara foundation face powder blush eyeliner eye shadow lipstick manicure preparations massage cream mustache wax nail care products, including: brushes cuticle removers enamel polish polish remover acrylic nails oral hygiene products, including: toothbrushes toothpaste dental floss mouthwash permanent waving cream, lotion, and kits perfumes peroxide (if for use in bleaching the hair or for other toiletry purposes)	pore cleanser protective cream * pumice stones razors rose water sachets (containing powder or other aromatic material) soap scalp lotion * scalp ointment * shampoo (nonmedicated) shaving cream stain removers styptics * suntan products that contain no sunscreen talcum powder tissue cream toilet lanolin * vaginal creams, douches, deodorant powders, or sprays (non-medicinal) water softener witch hazel wrinkle-concealing preparations
* Not subject to sales tax if the product is labeled for use for medicinal purposes.

General merchandise (taxable except as noted)
automotive supplies bath linens batteries† bed linens books (except for serial comic books and crossword puzzle magazines) calcium chloride (for melting ice) candles carpet cleaners and fresheners chalk charcoal Christmas trees (live or artificial) cigarette lighters cleaning products clocks, clock radios comic books (non-serial) CD’s, DVD’s, Blue-ray computer discs cookbooks flashlights film, blank cassette tapes flowers flower pots and seeds furniture (e.g., folding chairs) furniture polish, wax, etc. garden furniture garden tools and supplies gift wrap glue	greeting cards holiday decorations housewares ice (including cubes, chunks, blocks, and chips) kitchen appliances, including: coffee makers cookware cutlery utensils lighter fluid lunch boxes menorahs microwave cookware paper plates and cups pet food and supplies †† pet medications†† printer ink photography equipment and supplies, including: cameras lenses memory cards film flash bulbs or cubes picnic accessories (jugs, flatware, cutlery, etc.) picnic baskets plants plastic ware playing cards radios	reading glasses (non- prescription) rock salt room fresheners, deodorizers sanitary napkins or pads, tampons, and similar products scales (kitchen or bathroom) snow shovels stationery supplies, including: pens and pencils markers and crayons highlighters notebooks paper, envelopes binders, folders scissors paper clips, staples stereos sunglasses (nonprescription) table linen tableware tape players, recorders, cassettes tea pots thermos bottles, cups, jars, etc. torch lights toys video cassette recorders and tapes watches wrapping paper
† Except for batteries specifically designated for hearing aids. †† See Tax Bulletin Exemptions Relating to Guide, Hearing, and Service Dogs (TB-ST-245) for additional information.

Note: A Tax Bulletin is an informational document designed to provide general guidance in simplified language on a topic of interest to taxpayers. It is accurate as of the date issued. However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning.

Updated: September 10, 2019