Are Groceries Taxed in Tennessee? Tennessee Sales Tax Holidays

Tennessee offers a sales tax break on certain items at specific times of the year.

  • Clothing, School Supplies, and Computers

    • Clothing $100 or less per item is exempt, including shirts, pants, jackets, socks, shoes, and dresses.

    • School supplies $100 or less per item are exempt, including binders, books, backpacks, crayons, pens, pencils, and more.

    • Computers $1,500 or less are exempt, including laptops, desktops, and tablets.

  • Food Sales Tax Exemption

    • Food is exempt from sales tax the first week of August. Sales by restaurants, food trucks, caterers, and grocery stores are included.
  • Not Taxed Items

    • Jewelry, handbags, or sports equipment are not included in the tax exemption.

The Tennessee Works Tax Act brought relief on taxes for groceries.

  • Eligibility and Savings

    • Tennesseans won’t pay taxes on groceries from August through October.

    • Families are expected to save considerable amounts during this time.

  • Tax Cuts

    • Lawmakers passed the Tennessee Works Tax Act, cutting over $400 million in taxes, including the grocery tax holiday.

The state also offers a tax break on groceries and back-to-school items.

  • Back to School Weekend

    • Clothing under $100 per item, computers under $1,500, and school supplies under $100 per item are tax-free during the last weekend of July.
  • Grocery Tax Break

    • From August 1st to October 31st, groceries are exempt from the 4% sales tax in Tennessee.

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