Ready for back-to-school shopping? Tennessee's sales tax holiday is this weekend

Devarrick Turner, Knoxville News Sentinel
Updated ·3 min read

Tennessee’s traditional sales tax holiday is the final weekend in July, bringing relief to households as students prepare for another school year. But the weekend is only the opening act to a three-month tax holiday beginning in August.

Tennessee's 7% sales tax will be eliminated for select items during this year’s back-to-school tax-free holiday July 28-30. Items such as clothing, school supplies and computers can be purchased without sales tax, with some stipulations according to the Tennessee Department of Revenue.

Though the clothing and school supplies tax holiday is only a few days, it will be followed by a tax holiday for groceries starting Aug. 1. And this one will last until Oct. 31. Tennessee’s 4% food tax will be dropped when buying most foods.

What's exempt from sales tax during Tennessee's tax holiday weekend?

The traditional tax-free holiday July 28-30 applies to clothing and school supplies $100 or less per item. Computers, laptops and tablets costing $1,500 or less are also exempt from sales tax. The tax for these items is dropped for all consumers, not just students.

What is exempt

  • School and art supplies such as binders, backpacks, crayons, paper, pens, pencils, rulers, paints, drawing pads and artist paintbrushes.

  • General apparel such as shirts, pants, jackets, socks, shoes and dresses.

  • Computers, laptops and tablets such as iPads, for personal use.

  • A list of exempt items is available at tn.gov/revenue/taxes/sales-and-use-tax/sales-tax-holiday.

What is not exempt

  • Clothing items and school supplies costing more than $100 per item are not exempt from sales tax. Neither are personal computers over $1,500 or any electronics for business purposes.

  • Cosmetics, jewelry, handbags, wallets and other clothing accessories.

  • Sports and recreational equipment, including helmets, cleated and spiked shoes and skates.

  • Computer supplies such as storage drives, printers and printer ink.

  • Video consoles, electronic readers and smart phones, and household appliances.

  • A full list of items not exempt is available at tn.gov/revenue/taxes/sales-and-use-tax/sales-tax-holiday.

What will be exempt from sales tax during Tennessee's three-month food tax holiday?

The Tennessee General Assembly earlier this year approved a three-month grocery tax holiday. There will be no sales tax on most foods Aug. 1-Oct. 31. The Tennessee Department of Revenue estimates each Tennessee family will save over $100 in taxes.

The tax suspension is meant to alleviate some of the recent financial burden on households amid a period of high food prices. The price of eggs, in one notable example, skyrocketed in late 2022 and early 2023, peaking at $5.30 a dozen, according to data from the U.S. Department of Agriculture. Egg prices have dropped considerably, now costing between $0.99 and $1.39 recent USDA data showed.

But the cost of all food is still 6.7% higher than it was in 2022, according to the USDA’s June consumer price index report, making the three-month tax holiday a welcome relief.

A three-month food tax holiday Aug. 1-Oct. 31, 2023 in Tennessee will waive food sales tax at grocery stores. It's estimated that families will save over $100 in taxes during this period.
A three-month food tax holiday Aug. 1-Oct. 31, 2023 in Tennessee will waive food sales tax at grocery stores. It's estimated that families will save over $100 in taxes during this period.

What will be exempt

  • Food and food ingredients sold at grocery stores and other food dealers will not have a sales tax.

  • The Tennessee Department of Revenue defines food and food ingredients 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.”

  • A list of food and food ingredient examples is available at tn.gov/revenue/taxes/sales-and-use-tax/sales-tax-holiday.

What will not be exempt

  • Alcoholic beverages, tobacco, candy, dietary supplements and food prepared by the seller will still be taxed.

  • Food and food ingredients purchased from vending machines and other unmanned retail spaces where food and beverages can be purchased remain subject to sales tax.

Devarrick Turner is a trending news reporter. Email devarrick.turner@knoxnews.com. Twitter @dturner1208.

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This article originally appeared on Knoxville News Sentinel: Tennessee sales tax holiday dates for school supplies and groceries