How to Use Coupons with Your EBT Card to Save Money

If you receive food stamps (SNAP) or cash assistance (TANF), you likely use an EBT card to buy your groceries. A common question many people have is: Can I use coupons while paying with EBT?

The answer is yes. You can use coupons to lower your grocery bill even when you are paying with your benefits. Here is a simple guide on how it works and what you need to know.
 

How it Works at the Register

Most grocery stores treat EBT payments just like cash or a debit card. When you shop, the process follows these steps:
 

• Scanning: The cashier scans your items and your coupons.
• Discount: The store applies the coupon discount first, which lowers the price of the item.
• Payment: You use your EBT card to pay the remaining balance.

By using coupons, you use fewer SNAP benefits on each trip, which helps your monthly budget last longer.
 

Types of Coupons You Can Use

You can use both paper coupons (from newspapers or mailers) and digital coupons (from a store’s app or website). Just remember that you still have to follow the store’s rules, such as:
 

1. Using the coupon before it expires.
2. Meeting any "minimum purchase" requirements.
3. Observing limits on how many coupons you can use at once.

 

A Note on Sales Tax

Usually, you do not pay sales tax on items bought with SNAP. However, if you live in a state that charges a "grocery tax," things work a little differently when you use a coupon.

In some cases, you may be required to pay a small amount of sales tax on the portion of the price covered by the coupon. Since SNAP cannot be used to pay for taxes, you would need to use cash or a debit card to pay those few cents.

As of 2024, the states that still have a grocery tax include: Alabama, Hawaii, Idaho, Mississippi, Missouri, South Dakota, Tennessee, and Utah.

Quick Tip: Check your receipt for a "T" next to items like bread or milk. This will tell you if your local area charges tax on groceries.
 

What You Cannot Buy

Even with a coupon, you can only use SNAP for eligible food items. You cannot use your food stamps for:
 

1. Alcohol and tobacco.
2. Vitamins, medicines, or supplements.
3. Pet food.
4. Cleaning supplies and paper products (like toilet paper or paper towels).
5. Personal hygiene items (like soap or diapers).
6. Hot, ready-to-eat meals (like rotisserie chickens).

 

Other Ways to Save with EBT

Using coupons is a great start, but your EBT card can save you money in other ways, too:
 

• Farmers' Markets: Many markets offer "matching" programs where they give you extra money for fruits and vegetables when you spend $10 or $20.
• Discounted Memberships: You can get cheaper monthly rates for Amazon Prime and Walmart+.
• Entertainment: Your EBT card can get you free or very cheap admission to hundreds of museums, zoos, and science centers.
• Internet: Many providers offer low-cost internet plans for households that receive SNAP.

Using coupons with your EBT card is a smart way to make sure your family has more food for less money. Next time you head to the store, don't forget to check for deals!

Read: How to Get Discounted Home Internet with SNAP Benefits

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