Iowa SNAP Restrictions: What to Expect in 2026

If you receive Supplemental Nutrition Assistance Program (SNAP) benefits in Iowa, a major change is coming to how you can shop for groceries.

Starting January 1, 2026, the state will change what you can buy with your EBT card. The goal is to encourage healthy choices.

Here is the simple rule to remember: If an item has sales tax, you cannot buy it with SNAP.

The Tax Test

Currently, federal rules determine what you can buy with EBT. Under the new Iowa waiver, the state will use Iowa Department of Revenue sales tax rules to decide eligibility.

• Old Rule: You could buy sodas, candy, and most grocery items regardless of tax status.
• New Rule (Jan 1, 2026): Any food item that is subject to Iowa sales tax is ineligible. The only exception is seeds and produce-bearing plants, which are usually taxable but are still allowed on SNAP.

This might seem simple on the surface, but there are complicated nuances that may make it hard for SNAP shoppers to navigate. There are a few subtle nuances in the tax rules that make this very confusing.

• The Flour Rule: Iowa Department of Revenue says that candy does not contain flour. However, some popular candy bars like KitKat and Twix contain flour. It appears those products will continue to be eligible due to their flour content.
• The Spoon Rule: Be careful with food made at the store. If the store prepares the food and gives you a utensil (like a fork, spoon, or straw), it becomes taxable because it is considered a prepared food. This means that fruit cups with spoons attached or refrigerated deli-made sandwiches will be ineligible.

What You Can and Cannot Buy

Since the new rules are a bit complicated, we have made this list as comprehensive as possible.

Under the new rules, these items are considered taxable. That means you will have to pay for them with your own cash, not your SNAP card.

• Soda and Pop: This includes Coke, Pepsi, Mountain Dew, and energy drinks.
• Sweet Drinks: Lemonade, fruit punch (like Hi-C), and any drink that is not 100% juice.
• Candy: The state taxes candy, candy-coated items, and candy products that do not contain flour and are not refrigerated. This includes gummy bears, jellybeans, marshmallows, gum, etc.
• Baking chocolate: This includes chocolate chips, chocolate bars, and pieces.
• Dried fruit leather: This includes similar products made with natural or artificial sweeteners.
• Vitamins: Anything with a “Supplement Facts” label.
• Prepared Food: This includes food that is ready to eat at sale, including fruit cups with spoons attached or sandwiches assembled at the point of sale.
• Refrigerated Hot Food: Cold rotisserie chickens, refrigerated Chinese food, cold pizza slices or hot meals prepared by the store.

On the other hand, you can still buy most basic groceries. These items are safe to buy with SNAP.

• Basic Foods: Bread, milk, eggs, flour, and sugar.
• Meat: Chicken, beef, pork, and fish.
• Produce: Fruits and vegetables (fresh, frozen, or canned).
• 100% Juice: Orange juice, apple juice, or tomato juice.
• Garden Seeds: You can still buy seeds and plants that grow food.

Things You Should Know

Although we are not lawyers, we found several other interesting tidbits in Iowa’s 9-page waiver approval. These include:

• You can shop in other states. These new rules only apply to stores inside Iowa. If you live near the border and shop in a state like Nebraska, Illinois, or Missouri, your card will work like normal. You will follow the rules of the state you are shopping in.
• Shopping in other states is allowed and not fraud. The waiver says that this project cannot interfere with how EBT works across state lines, and that the state of Iowa cannot use inter-state shopping as a primary indicator of fraud. This means that the state of Iowa has promised that shopping across state lines will not get you in trouble or be used to flag your account for fraud.
• The state will be tracking data. This is a “Demonstration Project.” That means the state is testing to see if these rules make people healthier. The state will track data to see if health outcomes improve.
• You can refuse to take surveys. You might be asked to take a survey or answer questions about what you eat. You do not have to answer these surveys. You can say “no” and still keep all your SNAP benefits.
• This program is temporary. The waiver lasts for an initial two-year period. After that, the state can renew the waiver for one year at a time for up to three years. That brings the total duration to a maximum of five years.

How to Prepare

The changes don’t start until January 1, 2026. Here is how you can get ready now:

• Check Your Receipts: Next time you go grocery shopping, look at your receipt. Look for a “T” or the word “Tax” next to food items. These are the items you will need to buy with cash in the future.
• Adjust Your List: If you usually buy a lot of soda or snacks with SNAP, start planning your budget now. You will need to set aside cash for these treats later.
• Watch for Updates: The state will update its website and send out notices before the program starts. Keep an eye on your mail.

Relief Recap

It can feel like everything is being banned, but that isn’t true. Most of the staples that you purchase with EBT will still be allowed after these changes go into effect, but you may encounter surprises at the register if you don’t pay close attention to the tax rules. If possible, be prepared with a second payment method. And remember, be patient with your cashiers. They don’t have any control over this and it’s going to be a struggle for them, too.

This article was drafted with AI assistance and fully fact-checked by Nicole Thelin. Learn more about our Responsible AI Use Policy.