Food Sales Tax Holiday Starts August 1

The Tennessee General Assembly approved a new food sales tax holiday, which starts Monday, August 1, 2022 and ends Wednesday, August 31, 2022. During this period, food and food ingredients may be purchased tax free and not subject to the four percent state sales tax rate or local rate that may apply. 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.” Most food items sold at a grocery store are ones that are included in the food sales tax holiday.

Food and food ingredients not included in the food tax holiday include “alcoholic beverages, candy, dietary supplements, prepared food, tobacco, as well as items purchased from a micro market, or vending machine.” All of the previously mentioned items will remain subject to sales tax.

For more information visit www.tn.gov/revenue.