Taxes, Sales

Plain English Breakdown

The official source material does not provide specific details on how much tax will be added to processed foods or the exact impact on local government revenues.

Healthy Tennessee Grocery Tax Reform of 2026

This bill changes how food is taxed in Tennessee by removing taxes on certain types of food and adding taxes to others.

What This Bill Does

• Removes the sales tax on fresh or frozen produce, raw meat, poultry, fish, eggs, flour, ground cornmeal, dried legumes, bread, unsweetened cereal, dairy products, fruit juice that is 100% juice, and vegetable juice that is 100% juice.
• Requires highly processed food, packaged ready-to-eat food, canned food, snacks, chips, cookies, sugary cereals, and soda to be taxed at the rate levied on tangible personal property.

Who It Names or Affects

• People who buy groceries in Tennessee will see different prices for certain types of food based on whether they are taxed or not.

Terms To Know

Highly processed food

Food that has been changed a lot from its original form, often with added sugars and preservatives.

Packaged ready-to-eat food

Prepared meals or snacks that are sold in packages and can be eaten without further preparation.

Limits and Unknowns

• The bill does not specify how much the tax will increase for processed foods.
• It is unclear what impact this change will have on local government revenues.

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

HOUSE BILL 2570
By Kumar

SENATE BILL 2337
By Haile
SB2337
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.