Posted 3/12/24

Tennessee is one step closer to potentially ending its grocery tax as a bill advances.

The bill, House Bill 2043/Senate Bill 1934, would prohibit state and local governments from taxing groceries.

The bill passed out of the House Government Operations Committee Monday and will advance to the House Finance Subcommittee. Next, it will be presented in the Senate Finance, Ways and Means Revenue Subcommittee.

Tennessee’s sales tax rate on food currently stands at 4%, with local jurisdictions able to add up to an additional 2.75% in local sales taxes.

The proposed legislation prohibits state and local governments from taxing groceries, providing much-needed relief for working families.