Tennessee Grocery Tax Holiday 2025. 1, 2025, to file a copy of a new ordinance keeping the tax with the state for it to go into effect by jan. The state's sales tax on groceries is currently 4% and local governments can add their own rates, making a single grocery bill up to 6.75%.
Tennessee is one of 13 states with a grocery tax and it comes in at 4%. The new version of the bill would continue to use 0.5 percent of state tax revenue to fund tennessee education, while also eliminating the 4% state tax on retail sales.
