Taxes, Sales

Plain English Breakdown

The official summary does not provide specific details about the financial impacts or behavioral changes that might result from these tax reforms.

Healthy Tennessee Grocery Tax Reform of 2026

This bill changes Tennessee's sales tax rules for food and food ingredients by removing taxes on certain types of food while adding a tax on other specific items.

What This Bill Does

• Removes the current 4% sales tax on fresh or frozen produce, raw meat, poultry, fish, eggs, flour, ground cornmeal, dried legumes like beans and peas, bread, unsweetened cereal, dairy products, and fruit juice that is 100% juice.
• Adds a new section to the law stating that highly processed food, packaged ready-to-eat meals, canned foods, snacks, chips, cookies, sugary cereals, and soda will be taxed at the regular rate for other goods.

Who It Names or Affects

• People who buy fresh produce, raw meat, poultry, fish, eggs, flour, dried legumes, bread, unsweetened cereal, dairy products, and fruit juice that is 100% juice.
• People who buy highly processed food, packaged ready-to-eat meals, canned foods, snacks, chips, cookies, sugary cereals, and soda.

Terms To Know

Highly processed food

Food that has been changed a lot from its original form through cooking or adding ingredients like preservatives, flavors, or sugars.

Packaged ready-to-eat food

Food that is already prepared and packaged for immediate consumption without further preparation.

Limits and Unknowns

• The bill does not specify how the tax changes will affect local government revenues.
• It's unclear what specific impact this change will have on grocery prices or consumer behavior.

Official Summary Text

Present law imposes a 4% tax on the retail sale of food and food ingredients for human consumption. This bill exempts the retail sale of all of the following types of food and food ingredients for human consumption from sales tax:



Fresh or frozen produce


Raw meat, poultry, and fish


Eggs


Flour and ground cornmeal


Dried legumes, including beans, peas, and lentils


Bread


Unsweetened cereal


Dairy products


Fruit juice and vegetable juice that is 100% juice

This bill requires highly processed food, packaged ready-to-eat food, canned food, snacks, chips, cookies, sugary cereal, and soda to be taxed at the rate levied on the sale of tangible personal property at retail.

Current Bill Text

SENATE BILL 2337
By Haile

HOUSE BILL 2570
By Kumar
HB2570
011389
- 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. This act is known and may be cited as the "Healthy Tennessee Grocery
Tax Reform of 2026."
SECTION 2. Tennessee Code Annotated, Section 67-6-228(a), is amended by deleting
the language "Notwithstanding any provision of this part to the contrary, except as otherwise
provided in subsection (b)," and substituting instead the language "Notwithstanding this part to
the contrary, except as otherwise provided in subsections (b) and (c),".
SECTION 3. Tennessee Code Annotated, Section 67-6-228(b), is amended by adding
the language ", highly processed food, packaged ready-to-eat food, canned food, snacks, chips,
cookies, sugary cereal, soda" immediately after the language "prepared food".
SECTION 4. Tennessee Code Annotated, Section 67-6-228, is amended by adding the
following as a new subsection:
(c) The retail sale of the following types of food and food ingredients for human
consumption shall not be taxed under this chapter:
(1) Produce that is fresh or frozen;
(2) Raw meat, poultry, and fish;
(3) Eggs;
(4) Flour and ground cornmeal;
(5) Dried legumes, including beans, peas, and lentils;
(6) Bread;
(7) Unsweetened cereal;

- 2 - 011389

(8) Dairy; and
(9) Fruit juice and vegetable juice that is one hundred percent (100%)
juice.
SECTION 5. This act takes effect July 1, 2026, the public welfare requiring it.