The state of Tennessee has offered a late summer sales tax holiday for several years just prior to schools reopening, giving consumers relief when purchasing school-related supplies.
This year, consumers will get a bonus sales tax holiday on groceries for the entire month of August.
The annual sales tax holiday on clothing, school supplies, and computers begins Friday, July 29, and runs through Sunday, July 31.
The tax break on groceries starts the next day and runs through Aug. 31, coming at a time when inflation is hitting highs not seen in four decades.
“Grocery bills add up fast, especially with inflation rising to historic levels,” Tennessee Sen. Paul Rose said. “This sales tax holiday for unprepared food and food ingredients is one way we can help provide relief to Tennessee families at the grocery store. I hope all citizens take advantage of this financial savings.”
Rose (R-Covington), who represents Bartlett in the state Legislature, said the grocery tax break is part of more than $2 billion in tax cuts approved by Tennessee lawmakers since 2011 and is intended to provide relief to Tennesseans amid rising inflation and food costs.
The latest consumer price index, which measures the cost of food and other products ultimately paid by end consumers, rose 9.1 percent in June compared to a year ago, the largest 12-month increase since November 1981, according to the U.S. Bureau of Labor Statistics.
The month-long grocery sales tax holiday in August applies to food and food ingredients, but not to prepared food, alcohol, dietary supplements, tobacco or candy.
The state will replace local revenue that is lost, so the budgets of local governments will not be affected by the sales tax reduction.
For the tax holiday weekend July 29-31, sales tax will be exempt on clothing items of $100 or less, school and art supplies $100 or less, and computers for personal use that cost $1,500 or less.
“This annual sales tax holiday is a great opportunity for families, students and teachers to save money while preparing to go back to school,” Rose said. “I hope all citizens take advantage of this weekend and shop at small businesses to help boost their local economies.”
Another tax holiday underway that continues until June 30, 2023, exempts the sales tax on gun safes and safety devices.
For more information about the sales tax holidays, visit www.tntaxholiday.com.