Groceries are tax free from August through October 31, 2023. Tennessee’s 4% food tax will be dropped during the three-month period.
The Tennessee General Assembly earlier this year approved a three-month grocery tax holiday. The department estimates each Tennessee family will save over $100 in taxes.
What will be exempt during the grocery holiday will be food and food ingredients sold at grocery stores. 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.