Haslam Signs Into Law Tennessee Grocery Tax Reduction

May 17, 2013

Tennessee Governor Bill Haslam has signed into law a reduction in the state's sales tax on groceries.

Starting July 1, Tennessee shoppers will pay a 5% sales tax on retail food items. That's a reduction from the current 5.25% tax and down from 5.5% in the previous budget year. The regular sales tax is 7%, while local governments can add an additional tax of up to 2.75%.

he reduction in the sales tax on groceries was part of Haslam's legislative agenda and was approved in tandem with cuts to the state's taxes on inheritance, gifts and income from interest and dividends.