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HB2059 • 2026

Taxes, Sales

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 6, relative to food and food ingredients.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Towns, Akbari
Last action
2026-04-08
Official status
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details on the financial impact or savings for consumers.

Lowering Sales Tax on Food in Tennessee

This bill changes the sales tax rate for food and food ingredients sold in Tennessee from 4% to 2%. It affects how much people pay when they buy groceries.

What This Bill Does

  • Changes the state law so that food and food ingredients are taxed at a lower rate of 2% instead of 4%
  • Does not change the higher tax rates on prepared foods, alcoholic beverages, candy, dietary supplements, and tobacco

Who It Names or Affects

  • People who buy groceries and other food items in Tennessee
  • Grocery stores and restaurants that sell food to customers

Terms To Know

Sales tax
A tax added to the price of goods or services when they are sold, paid by the buyer
Retail sale
The act of selling a product directly to a customer for personal use

Limits and Unknowns

  • Does not specify how much money local and state governments will lose from this change in tax rates

Bill History

  1. 2026-04-08 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026

  2. 2026-03-25 Tennessee General Assembly

    Placed behind the budget

  3. 2026-03-25 Tennessee General Assembly

    Sponsor(s) Added.

  4. 2026-03-18 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/25/2026

  5. 2026-03-18 Tennessee General Assembly

    Action Def. in s/c Finance, Ways, and Means Subcommittee to 3/25/2026

  6. 2026-03-17 Tennessee General Assembly

    Refer to Senate F,W&M Committee w/ negative recommendation

  7. 2026-03-11 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/18/2026

  8. 2026-03-11 Tennessee General Assembly

    Action Def. in s/c Finance, Ways, and Means Subcommittee to 3/18/2026

  9. 2026-03-10 Tennessee General Assembly

    Placed on Senate FW&M Revenue Subcommittee calendar for 3/17/2026

  10. 2026-03-04 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/11/2026

  11. 2026-02-10 Tennessee General Assembly

    Refer to Senate FW&M Revenue Subcommittee

  12. 2026-02-04 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  13. 2026-02-04 Tennessee General Assembly

    P2C, ref. to Finance, Ways, and Means Committee

  14. 2026-02-02 Tennessee General Assembly

    Intro., P1C.

  15. 2026-02-02 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Finance, Ways, and Means Committee

  16. 2026-01-23 Tennessee General Assembly

    Filed for introduction

  17. 2026-01-22 Tennessee General Assembly

    Introduced, Passed on First Consideration

  18. 2026-01-21 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law provides that food and food ingredients be taxed at 4%
rather than the general state sales tax rate. However, the retail sale of food and food ingredients sold as prepared food, alcoholic beverages, candy, dietary supplements, and tobacco is taxed at the rate levied on the sale of tangible personal property
at retail.

This bill lowers the food retail sales tax for the retail sale of food and food ingredients for human consumption from 4% to 2% of the sales price.

Current Bill Text

Read the full stored bill text 
SENATE BILL 1835
By Akbari

HOUSE BILL 2059
By Towns
HB2059
011456
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 6, relative to food and food ingredients.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-6-228(a), is amended by deleting
the language "taxed at the rate of four percent (4%)" and substituting instead the language
"taxed at the rate of two percent (2%)".
SECTION 2. This act takes effect July 1, 2026, the public welfare requiring it.