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SB1835 • 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
Akbari, Towns
Last action
2026-04-14
Official status
Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Lowering Food Sales Tax

This bill changes Tennessee's food and food ingredients sales tax from 4% to 2%, affecting how much people pay when buying 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 tax rates for prepared foods, alcoholic beverages, candy, dietary supplements, or tobacco
  • Reduces the amount of money collected by both the state and local governments from sales taxes on food

Who It Names or Affects

  • People who buy food and food ingredients in Tennessee will pay less sales tax when they shop
  • Grocery stores and other businesses that sell food will see a change in their tax rates

Terms To Know

Sales Tax
A tax added to the price of goods or services, collected by sellers from buyers
Retail Sale
The sale of a product directly to an end user, such as when you buy groceries at a store

Limits and Unknowns

  • It is not clear how much less money the state and local governments will collect from this change in tax rates.

Bill History

  1. 2026-04-14 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026

  2. 2026-04-08 Tennessee General Assembly

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

  3. 2026-03-25 Tennessee General Assembly

    Placed behind the budget

  4. 2026-03-25 Tennessee General Assembly

    Sponsor(s) Added.

  5. 2026-03-18 Tennessee General Assembly

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

  6. 2026-03-18 Tennessee General Assembly

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

  7. 2026-03-17 Tennessee General Assembly

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

  8. 2026-03-11 Tennessee General Assembly

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

  9. 2026-03-11 Tennessee General Assembly

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

  10. 2026-03-10 Tennessee General Assembly

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

  11. 2026-03-04 Tennessee General Assembly

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

  12. 2026-02-10 Tennessee General Assembly

    Refer to Senate FW&M Revenue Subcommittee

  13. 2026-02-04 Tennessee General Assembly

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

  14. 2026-02-04 Tennessee General Assembly

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

  15. 2026-02-02 Tennessee General Assembly

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

  16. 2026-02-02 Tennessee General Assembly

    Intro., P1C.

  17. 2026-01-23 Tennessee General Assembly

    Filed for introduction

  18. 2026-01-22 Tennessee General Assembly

    Introduced, Passed on First Consideration

  19. 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 
HOUSE BILL 2059
By Towns

SENATE BILL 1835
By Akbari
SB1835
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.