Tax & Accounting Blog

Tennessee Grocery Tax Reduced

Indirect Tax, ONESOURCE, Sales and Use Tax May 14, 2012

 Beginning July 1, Tennessee will see a reduction in their grocery sales tax from 5.5% down to 5.25%.  This cut, which was passed by the General Assembly last month and figures to save your average consumer about $3.40 a year, will cost the state about $22 million in revenue over that period.  The governor intends to sign another reduction the following year, dropping the tax down to 5.0%, as part of a larger plan to reduce a number of taxes throughout the state.  The grocery tax does not apply to items such as prepared food, dietary supplements, candy, alcohol, or tobacco.