Tennessee – Change in Food Tax Rate

SALT Report 2569 – The Tennessee Department of Revenue has issued a notice informing taxpayers that effective July 1, 2013 the state sales and use tax rate on food and food ingredients will decrease from 5.25% to 5%. However, prepared foods, dietary supplements, candy, alcoholic beverages and tobacco products will continue to be subject to the general state sales and use tax rate of 7%.

For purposes of the rate reduction, “food and food ingredients” are defined as substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value. Food and food ingredients does not include alcoholic beverages, tobacco, candy, dietary supplements or prepared food.

For Further Information

Tennessee Department of Revenue – Important Notice No. 13-05