While New York's iconic bagels draw food enthusiasts worldwide, few visitors in 2026 anticipate the city's peculiar sales tax logic. A century after Benjamin Franklin's famous tax adage, the United States continues to surprise with localized levies like the 8% 'prepared food' charge applied to sliced or toasted bagels – a policy that recently sparked debate among consumers and business owners alike.
CGTN's Edgar Costa visited Manhattan's Ess-a-Bagel shop, where manager Brandon Thomasson explained: "The moment we alter a bagel with slicing or toppings, it transforms from grocery to prepared food under state law. This year, that distinction costs customers nearly $0.50 extra per $6 bagel."
Other notable 2026 state levies include:
Colorado's 0.8% 'napkin tax' on disposable food service items
Arkansas' 6% surcharge on tattoo services
Illinois' controversial candy classification system taxing some sweets at 6.25%
While these policies primarily impact U.S. consumers, global business analysts note they demonstrate the complexity of navigating America's decentralized tax systems – a cautionary tale for international investors eyeing Asian markets with more standardized regulations.
