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Wednesday is final day to get groceries tax free in Tennessee

The month-long tax break for purchasing food and food ingredients is coming to a close at 11:59 p.m. Wednesday night, Aug. 31.

This year’s Tennessee state budget allocates for the entire month of August to be exempt from state sales tax at the grocery store. The holiday began at 12:01 a.m. Monday, Aug. 1 and ends at 11:59 p.m. on Wednesday, Aug. 31.

During this period, food and food ingredients may be purchased tax free. Food and food ingredients purchased from a micro market or vending machine remain subject to sales tax.

Food and food ingredients are 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 ingredients do NOT include alcoholic beverages, tobacco, candy, dietary supplements or prepared food.

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The most common example of a dealer selling food and food ingredients is a grocery store. Food and food ingredients are those items otherwise taxed at 4% state sales tax plus the applicable local rate.

Local sales tax will still apply.

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