What to Know About the Food Tax Holiday

food tax holiday

In addition to the traditional sales tax holiday on clothing, school supplies and computers, which is already underway, a food tax holiday is underway.

Here’s what you need to know about the food tax holiday.

*Note: The traditional sales tax holiday ends today, Sunday, August 1 at 11:59 p.m., while the food tax holiday ends August 5 at 11:59 p.m.

Food Tax Holiday

What: For 2021, Tennessee’s General Assembly has approved a sales tax holiday on food, food ingredients and prepared food

When: Began at 12:01 a.m. on Friday, July 30, 2021, and ends at 11:59 p.m. on Thursday, August 5, 2021.

What’s tax-exempt?

    • Food and food ingredients – defined as liquid, concentrated, solid, frozen, dried, or dehydrated substances that are sold to be ingested or chewed by humans and are consumed for their taste or nutritional value. Food and food ingredients do not include alcoholic beverages, tobacco, candy, dietary supplements, or prepared food.
    • Prepared Food –  A food item qualifies as prepared food if it:- Is sold in a heated state or heated by the seller,
      – Contains two or more food ingredients mixed together by the seller for sale as a single item; or
      – Is sold with eating utensils, such as plates, knives, forks, spoons, glasses, cups, napkins, or straws provided by the vendor.
      – Prepared food does not include food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the Food and Drug Administration to prevent foodborne illnesses.
    • Sales of alcoholic beverages are not included in items exempt during this period.

Visit www.tntaxholiday.com for more information.

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