Tennessee food sales tax rate to drop July 1st - WRCBtv.com | Chattanooga News, Weather & Sports

Tennessee food sales tax rate to drop July 1st

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NASHVILLE, TN (WRCB) -- Food retailers in Tennessee have until July 1st to reprogram their cash registers, as that is when the new reduced sales tax rates on food goes into effect.

The new rates, effective July 1, lower the state sales tax on food and food ingredients from 5.5% to 5.25%.

"In a year's time, a family of four would save somewhere between thirty and forty dollars," said Rep. David Alexander (R-Winchester), the sponsor of the bill.

Prepared food, dietary supplements, candy, alcoholic beverages and tobacco continue to be subject to the general state sales and use tax rate of 7% plus the applicable local sales and use tax rate.

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