While Tennessee generally applies a state sales tax to groceries, specific "food and food ingredients" are periodically made tax-free during designated tax holiday events.
Understanding Tennessee's Grocery Tax
Tennessee typically levies a state sales tax on most purchases, including groceries. Currently, the state applies a 4% sales tax to "food and food ingredients," in addition to any applicable local sales taxes. However, the state sometimes offers temporary exemptions during special events or periods.
What Qualifies as Tax-Free Groceries During Exemptions?
During periods when Tennessee offers a break from its grocery tax, such as specific tax-free events, the exemption applies to "food and food ingredients" that meet the following criteria:
- Intended for Human Consumption: The items must be sold to be ingested or chewed by humans.
- Consumed for Taste or Nutritional Value: The purpose of consumption must be for their taste or nutritional value.
This broad definition encompasses various forms of qualifying food items.
Forms of Qualifying Food Items
During these tax-free periods, "food and food ingredients" include substances in the following forms:
| Form of Food | Examples of Qualifying Items |
|---|---|
| Liquid | Milk, fruit juice, bottled water, soft drinks |
| Concentrated | Frozen juice concentrates, soup concentrates |
| Solid | Bread, pasta, fresh produce (fruits, vegetables), meat, cheese, snacks (chips, cookies) |
| Frozen | Frozen vegetables, frozen meals, ice cream, frozen fruit |
| Dried | Dried beans, rice, spices, dried herbs, pasta |
| Dehydrated | Dried fruits, instant coffee, powdered milk |
Important Considerations
It is crucial to remember that the tax-free status for groceries in Tennessee is typically temporary and tied to specific events or periods. It is not a continuous, year-round exemption. For instance, an event in 2024 included a break from the 4% grocery tax. Consumers should always check official announcements from the Tennessee Department of Revenue for specific dates and details regarding any upcoming tax-free grocery periods.
For more detailed information on sales tax in Tennessee, including specific exemptions and regulations, you can refer to the Tennessee Department of Revenue website.
