The letters beside grocery prices are register tax flags, not a universal alphabet. N is reported as not taxed, X or T as taxed, and F as food, or as FSA eligible at Costco. You can prove what they mean on your own slip with one division.
What do the letters on a grocery receipt mean?
At the three chains below, N is reported to mean not taxed, X or T taxed, and F food at Walmart and Target or FSA and HRA eligible at Costco, but none of that is an official key.
We looked for an official receipt-letter key from Walmart, Target and Costco on October 15, 2026 and found none published. So every row says how solid it is. "Consistently reported" means independent reports agree. "Reported" means one or two published sources. "Disputed" means sources contradict each other. "One shopper comment" is exactly that.
| Chain | Letter | Reported meaning | How solid | Source |
|---|---|---|---|---|
| Walmart | N | Not taxed | Consistently reported | Money.SE answer built on real receipts, r/walmart, 2018 and r/walmart, 2018 |
| Walmart | X | Taxed | Consistently reported | Money.SE answer, r/walmart, 2018 and r/walmart, 2018 |
| Walmart | O | Not taxed in the posts above, which describe a sale item; one third-party guide reads it as a reduced rate | Disputed | Money.SE, r/walmart vs BookZero guide |
| Walmart | F | Food item, covered by SNAP or EBT in the replies | Reported | r/walmart, 2018 and Money.SE |
| Target | T, N, F | Taxable item, nontaxable item, food item | Consistently reported | a real Target receipt, Jan 21, 2026 and r/Target, Jan 2024 |
| Target | TF | Taxable food, such as candy | One shopper comment | r/Target, Jan 2024 |
| Target | NF | Nontaxable food, such as most groceries | One shopper comment | r/Target, Jan 2024 |
| Costco | F on the left of the item | Eligible for FSA or HRA reimbursement | Reported | PeopleKeep help center |
| Costco | A on the right of the item | The A tax rate was used for that item, commonly read as taxable | Reported | PeopleKeep and PriceMatcher |
| Costco | E | Tax-exempt, which in many states means qualifying food | Reported | PriceMatcher |
The Walmart rows come from forum posts by shoppers and commenters who say they work or worked there, plus one Money.SE answer based on its author's own receipts. None of it comes from Walmart, so read those rows as shopper reports. The Target and Costco rows rest on the sources shown.
Taxability follows state rules, so the same item can be N in one state and X in another. Costco's left side versus right side matters: the F on the left and the A on the right say different things. A short key printed on some receipts, such as the health-item symbol PeopleKeep describes on a Target receipt, explains only that receipt.
Check it yourself in two minutes
Divide the tax by your local rate to get the amount that was taxed, then find the lines that add up to it. Those lines carry the taxed letter on your slip, whatever the chart says.
| Item | Price | Letter |
|---|---|---|
| Bananas | $1.89 | N |
| Milk | $4.29 | N |
| Bread | $3.79 | N |
| Paper towels | $8.99 | T |
| 2-liter soda | $2.49 | T |
| Subtotal | $21.45 | |
| Tax at 8.25% (example rate) | $0.95 | |
| Total | $22.40 |
- Take the tax: $0.95.
- Divide by your combined local rate. Here that is $0.95 ÷ 0.0825, about $11.52.
- Find the lines that add to about that. $8.99 + $2.49 = $11.48. The gap is cent rounding: $11.48 × 0.0825 = $0.9471, which rounds to $0.95.
- Those lines carry the taxed letter. Here that is T. The N lines were not taxed.
Because the printed tax is rounded to the cent, the taxed lines must total between about $11.45 and $11.58. In this example only one combination of lines lands in that range. If no combination comes close, the strip probably has two rates, so look for a second tax line. A coupon or discount printed below the lines can also move the numbers, so a near match is strong evidence, not a guarantee.
That is also how to read an unfamiliar letter. Whatever it is called, a letter that shows up on the lines that add up to the tax is a taxed flag on that slip. For splitting by tax later, see how to split receipts by tax category.
PLU vs UPC vs SKU
Three codes get mixed up on grocery strips. A PLU, or price look up code, is a 4 or 5-digit number on the small sticker on loose produce. IFPS, which assigns PLU codes, says the 4-digit codes are for conventionally grown produce and that a prefix of 9 in front of the 4-digit code marks the organic version. A UPC is a twelve-digit bar code. NC State Extension says fixed-weight or fixed-count produce, such as a bagged apple or a blueberry pint, uses a UPC instead of a PLU. A SKU is a stock keeping unit, which Amazon's seller guide describes as a code for internal inventory management that is tied to one business, so it is not universal.
One myth keeps circulating: that a produce code starting with 8 means genetically modified. IFPS says the codes are randomly assigned and that there is no intelligence built into the code. Its 83000 and 84000 series are simply reserved to be assigned after the 3000 and 4000 series are exhausted. Read from the IFPS PLU page and the NC State Extension guide on October 15, 2026.
Which numbers go in your ledger
Date and merchant from the header, total and tax from the money block, and a category if you use one. Line items and letters stay optional unless you need item-level review. For categories, see how to organize receipts by category, and for the general case, reading any receipt for expense tracking.
| date | merchant | total_amount | currency | tax_amount | category | client_tag | notes | file_name |
|---|---|---|---|---|---|---|---|---|
| 2026-09-20 | Example Market | 22.40 | USD | 0.95 | Groceries | example-strip.jpg |
Slipsheet keeps that row for you. Upload a photo or PDF of the strip on the web, or, on a paid plan, forward an emailed receipt with the receipt attached to receipts@slipsheet.app, from the email address on your Slipsheet account. Slipsheet reads it with OCR and fills in a row you review. The export is one CSV with nine columns, which opens in Excel; QuickBooks and Xero take it through their CSV import. Google Sheets sync is on Pro, and Excel and Microsoft 365 sync are coming soon. Starter is $5/mo for up to 250 receipts and Pro is $12/mo for up to 1,500, with a 14-day free trial and no card needed. Try Slipsheet.
FAQ
What does N mean on a grocery receipt?
At Walmart and Target, N is reported to mean the item was not taxed. It is a register flag, not an official chain key, and the same item can be N in one state and X in another. To confirm it on your own slip, divide the tax by your local rate and see which lines add up to the result.
What does F mean on a Costco receipt?
PeopleKeep, an HRA administrator, says an F to the left of the item description marks an item that is FSA and HRA eligible. PriceMatcher notes that Costco publishes no universal legend, so treat this as a reported meaning, not an official one.
Is an 8 at the start of a produce code GMO?
No. IFPS, the group that assigns PLU codes, says there is no intelligence built into the code. Its 83000 and 84000 series are reserved to be used after the 3000 and 4000 series run out. Checked October 15, 2026.
How can I tell which items were taxed on my receipt?
Divide the tax by your local rate, then find the lines that add up to about that amount. On the example strip, $0.95 divided by 8.25% is about $11.52, and the two lines marked T add up to $11.48.