Is there sales tax on groceries in Tennessee?
Quick answer
Partly. Tennessee taxes grocery food at a reduced 4% state rate instead of the full 7%, and local rates may still apply on top.
Tennessee taxes food and food ingredients at a reduced 4% state rate; local rates apply in full.
Rule summary
How Tennessee treats each category.
| Grocery food (home consumption) | Reduced state rate of 4% |
|---|---|
| Prepared and restaurant food | Taxable at the full combined rate (9.25%–9.75%) |
| Candy and soft drinks | Usually taxable even where groceries are exempt |
| Prescription medicine | Exempt |
Source: Tennessee Department of Revenue · rates as published for 2026
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Tennessee Department of Revenue or a tax professional before relying on it for filing.
Combined rates in Tennessee
What a taxable purchase actually costs in Tennessee.
Frequently asked
Answers pulled from the same rule set.
- Is there sales tax on groceries in Tennessee?
- Partly. Tennessee taxes grocery food at a reduced 4% state rate instead of the full 7%, and local rates may still apply on top.
- Is prepared food taxed differently than groceries in Tennessee?
- Yes. Tennessee treats hot, ready-to-eat and restaurant food as a taxable retail sale even where unprepared grocery food is exempt or reduced.
- Are prescription drugs taxable in Tennessee?
- No. Prescription medicine is exempt from sales tax in Tennessee.
More Tennessee guides
Other Tennessee rules that change the total.