9 States That Don't Tax Over-the-Counter Medicines

7. Texas

​Any drug or medicine a person uses in the diagnosis, cure, mitigation, treatment or prevention of a disease, illness, injury or pain is exempt from the state sales tax. This applies to over-the-counter medications if the package has a Drug Facts label from the Food and Drug Administration or if they are prescribed by a doctor.

8. Vermont​

The Green Mountain State does not tax any nonprescription medicines used in the diagnosis or treatment to alleviate human suffering or to correct physical disabilities.

9. Virginia

​Any nonprescription medications purchased to cure, mitigate, treat or prevent diseases in people are exempt from the sales tax.

10. Washington, D.C.

Hearing aids, medical equipment and any medicines and drugs that contain at least one recognized medicine, pharmaceutical or drug listed as an active ingredient are exempt from sales tax.

How to save on OTC meds

​Whether you live in a state that taxes or doesn’t tax over-the-counter medicines and remedies, purchasing them can be cost-prohibitive for many households. The good news is there are several ways to save, including these four: 

1. Get a prescription. This applies to individuals living in the 41 states that tax OTC drugs. All of the states will exempt a drug it if is prescribed by a licensed health care provider, says Charlene Rhinehart, a certified public accountant and personal finance editor at GoodRx. To save more, Rhinehart says, get a prescription for a generic version of the OTC medicine. “Generic OTC medications are safe and just as effective as brand names with the same active ingredients, but typically cost less,” she says.

2. Buy in bulk. If you take the medication frequently, Rhinehart says you can save purchasing the remedy in bulk at warehouse stores like Costco or Sam’s Club. This strategy only works if you will use the medicine before the expiration date. The older the medicines, the more likely they are to lose efficacy.

3. Use pharmacy rewards programs. Most drugstore chains, from CVS to Walgreens, offer shoppers rewards programs where they can get money off on items in the store, including OTC medicine, says shopping expert Trae Bodge.

4. Shop around to save. Prices for medications can vary based on the city, store and whether you are purchasing it in person or online. As a result, it behooves you to price comparison shop to yield the most savings. “You may find that the cost of OTC meds is lower at warehouse club retail stores like Sam’s Club or a large chain like Walgreens than at a smaller, more boutique drugstore,” Rhinehart says. “This is because these larger stores can negotiate prices from suppliers in a way smaller, independent stores aren’t able to.” Buying online or in bulk may also be more cost-effective than shopping in person, she says.