Grocery sales tax holiday starts August 1

CHATTANOOA, Tenn. (WDEF) – Starting Tuesday, Tennessee families can save some money at the supermarket.  

This year, Governor Bill Lee and the General Assembly passed the Tennessee Works Act. 

That means no sales tax on most groceries. 

“Starting tomorrow, August 1, and for the next three months, all of August, all of September, all of October, you can go to the grocery store, buy everything you need and pay no sales tax revenue, grocery sales tax holiday for three months,” Governor Bill Lee said. 

Tennessee shoppers are expected to save more than a quarter of a billion dollars.

The tax suspension runs through Halloween. That could really help local families.

“If you think about the average family of four’s typical grocery bill, let’s say about $1,000 a month, over this three-month period of time, it is going to save the average family somewhere between $150 and $200,” said Chris Hopkins, Principal at Apogee Wealth Partners. 

So, what is not included?

Taxes will continue on alcohol, tobacco, candy, dietary supplements and prepared food.

Food City is expecting folks to stock up on everything else.

“Well, we are stocking up our shelves more than usual, being prepared for the grocery tax season,” said Food City Store Manager, Bill Abliane. “It is an exciting time. It is back to school, and it is also tax free. So, you can get those after school snacks, or you can fill up your freezer.” 

The grocery tax period will start at 12:01 am on Tuesday, August 1, 2023, and end Tuesday, October 31, 2023, at 11:59 pm.

For more information visit the state of Tennessee’s website.