State Reminds Tennesseans of Upcoming Sales Tax Holidays
Tennessee's traditional sales tax holiday on clothing, school supplies and computers, as well as the state’s new sales tax holiday on food and food ingredients, begin on July 28 and Aug. 1, respectively.
The clothing, school supplies and computers sales tax holiday begins at 12:01 a.m. on Friday, July 28, 2023, and ends at 11:59 p.m. on Sunday, July 30, 2023. During this time, clothing, school supplies and computers may be purchased tax free. Items sold online are also eligible. Items must be purchase for personal use, not for business or trade, and certain restrictions apply.
The traditional sales tax holiday comes in addition to the Tennessee Works Tax Act, which includes a three-month grocery tax suspension starting at 12:01 a.m. on Tuesday, Aug. 1, 2023, and ending at 11:59 p.m. on Tuesday, Oct. 31, 2023. During this period, food and food ingredients may be purchased tax free. Food and food ingredients purchased from a micro market or vending machine remain subject to sales tax.
“Food and food ingredients” are defined 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. Food ingredients do not include alcoholic beverages, tobacco, candy, dietary supplements and prepared food. For more information and examples of food and food ingredients, see Important Notice #17-20.
The most common example of a dealer selling food and food ingredients is a grocery store. Food and food ingredients are those items otherwise taxed at the 4% state sales tax rate plus the applicable local rate. For information on reporting exempt sales during the food and food ingredients holiday, see Important Notice #23-09.
For more information on either sales tax holiday, visit the Department of Revenue’s website.