Tax & Accounting Blog

New TN State Sales and Use Tax Rate on Food

Indirect Tax, ONESOURCE, Sales and Use Tax June 21, 2013

Beginning July 1, 2013 the sales and use tax rate on food and food ingredients in TN will be lowered from 5.25 percent to 5 percent. Those food items not included in that lower rate list are; all prepared foods, dietary supplements, candy, alcoholic beverages, and tobacco. These food items will remain at the higher sales and use tax rate of 7 percent. For more information on this law visit the TN Department of Revenue.