If you’re buying a bagel in New York, be prepared to pay a little extra if you want it altered. According to USA Today, New York’s “bagel tax” applies to bagels that are cut, toasted, or “schmeared” with any kind of spread or toppings.
Anything beyond a simple, uncut bagel is considered a prepared food, making it eligible to be taxed accordingly. Bagels and cream cheese are a common pairing. And while many might deal with the added cents for their breakfast, two companies have decided to take a stand against it.
To save fans that eight-cent “bagel tax,” Philadelphia Cream Cheese is partnering with New York’s H&H Bagels to sell bagels without the prepared food tax, according to an April 11 press release. The “tax-free bagel” will come in three flavors: plain, everything, or cinnamon raisin. All three will be stuffed with a core of original Philadelphia cream cheese.