Image Credit: State Representative Elaine Davis / Facebook & Canva
The Tennessee Conservative Staff –
State Representative Elaine Davis (R-Knoxville-District 18) is proposing legislation for the upcoming General Session that would eliminate the state sales tax on groceries.
House Bill 0021 (HB0021) would repeal the 4% sales tax on food and food ingredients beginning as of July 1, 2025. Local governments would still be permitted to set their own grocery tax, and items such as prepared foods, alcohol, candy, tobacco, and diapers would still be taxed.
“We have all felt the impact of rising food prices over the last few years, and working families have struggled to put food on the table as a result,” stated Davis. “Tennesseans know best how to spend their own money. Repealing taxes on essential items like food and personal hygiene products has been one of my top legislative priorities.”
Currently, Tennessee is one of only 13 states that still tax food and groceries, with combined state and local sales taxes reaching as high as 6.75%. Temporary grocery tax holidays have been offered in the past, but the legislature opted not to approve one for this past year.
Davis says her proposal would save families hundreds of dollars annually without negatively affecting businesses or employees. House Majority Leader William Lamberth, R-Portland, echoed her sentiments, co-sponsoring the bill and emphasizing its potential to reduce financial burdens on families.
“Repealing the state grocery tax without burdening our businesses is a critical step in our ongoing efforts to reduce the financial burden on working families and ensure that basic necessities are more affordable for all Tennesseans,” Lamberth said. “This tax cut is not just about saving money — it’s about helping families thrive by making Tennessee a more affordable place to live.”
Although Davis’ bill has gained support from Republican leadership, its financial implications remain uncertain. A three-month grocery tax holiday in 2022 cost the state $288 million in revenue, and a permanent repeal is expected to result in a significant fiscal impact.
Democrats have consistently advocated for reducing or eliminating the grocery tax. This year, Rep. Aftyn Behn (D-Nashville-District 51), reintroduced her own proposal to get rid of the tax while requiring corporations to pay taxes based on worldwide combined reporting. Similar measures proposed by Behn in the past failed to gain traction.
The last reduction of Tennessee’s food sales tax occurred during the Haslam administration when it was lowered from 5% to 4% as part of the IMPROVE Act, which simultaneously increased gas and diesel taxes while reducing business taxes for manufacturers.
