There is a sales tax holiday in Tennessee on groceries going on now. It started on August 1st and runs through October 31st, 2023. This means that you won't have to pay sales tax on most foods during this time period. The Tennessee Department of Revenue estimates that each Tennessee family will save over $100 in taxes during the holiday (See the Sales Tax Notice from the state HERE).
Here are some things to keep in mind about the sales tax holiday:
- Only food and food ingredients sold at grocery stores and other food dealers will be exempt from sales tax.
- The Tennessee Department of Revenue defines food and food ingredients as "liquid, concentrated, solid, frozen, dried or dehydrated substances that are sold to be ingested or chewed by humans and are consumed for their taste or nutritional value."
- A list of food and food ingredient examples is available at tn.gov/revenue/taxes/sales-and-use-tax/sales-tax-holiday.
- Alcoholic beverages, tobacco, candy, dietary supplements and food prepared by the seller will still be taxed.
- Food and food ingredients purchased from vending machines and other unmanned retail spaces where food and beverages can be purchased remain subject to sales tax.
From Governor Bill Lee: Tennessee Governor Bill Lee invited Tennessee families to save during the state’s three-month grocery tax suspension, starting tomorrow, August 1 through October 31.
This year, Gov. Lee and the General Assembly passed the Tennessee Works Tax Act, the single largest tax cut in Tennessee history, which includes the three-month grocery tax suspension. During the tax holiday, Tennesseans are expected to save an estimated $273 million in taxes total.
“In Tennessee, we cut taxes any chance we get because families should keep more of their own hard-earned dollars. Starting Tuesday, we’re inviting Tennesseans to take advantage of savings at the grocery store this August through October,” said Gov. Lee. “I thank the General Assembly for partnering to deliver three months of savings for Tennessee taxpayers.”
The three-month grocery tax holiday starting Tuesday, August 1 through Tuesday, October 31 will give Tennesseans the opportunity to save up to 6.75 percent in state and local option sales tax on food and food ingredients. Tennesseans can learn more about the tax holiday here.
“We’re proud to be able to offer three months of tax-free groceries to help hardworking Tennesseans save money,” said Department of Revenue Commissioner David Gerregano. “I thank the Governor and General Assembly for their efforts to steward taxpayer dollars responsibly and cut taxes for Tennessee families.”
