Groceries in Davidson County now carry 5.75% sales tax, down from 6.25%, after Metro cut its local share to 1.75%. Candy, alcohol and prepared food are not included.
Groceries bought in Davidson County now carry less sales tax. Since Sunday, Nov. 1, the local rate on food and food ingredients is 1.75%, down from 2.25%.
With the 4% state rate on top, shoppers now pay 5.75% on qualifying groceries, down from 6.25%. The new rate is set out in the Tennessee Department of Revenue’s Notice 26-19, which tells retailers how to charge it.
Mayor Freddie O’Connell’s office called it a 22% cut to the local grocery tax. It estimated the relief at between $8 million and $9 million a year, in a news release on Friday, Oct. 30.
“Every family deserves to feel comfortable putting food on the table,” O’Connell said.
What it saves you
On every $100 of groceries, the tax falls from $6.25 to $5.75. That is 50 cents saved per $100.
The mayor’s office said the savings add up over a year, for most families, to “an extra free trip to the grocery store.”
What counts as groceries
The lower rate applies only to “food and food ingredients,” as state law defines them. That is food and drink sold to be eaten or drunk for taste or nutrition, the state’s notice says.
Covered: the everyday items you buy at a grocery store to prepare at home.
Not covered, so no change:
- alcoholic beverages
- tobacco
- candy
- dietary supplements
- prepared food, such as hot meals
Everything else that is taxable, from clothing to household goods, stays at Davidson County’s 2.25% local rate plus the state rate.
Where it applies
The 1.75% rate covers every store in Davidson County, including the smaller cities inside it, the Department of Revenue said. The notice names:
- Belle Meade
- Berry Hill
- Forest Hills
- Goodlettsville
- Oak Hill
Goodlettsville, about 12 miles north, straddles the Sumner County line. The notice covers sales in Davidson County only.
What it means for you
- Check your next receipt. Qualifying grocery items should show 5.75% tax. If a store still charges 6.25% on everyday groceries, ask at customer service.
- Stores report on a new line. Retailers start reporting the lower rate on their November sales tax return, due Dec. 20, the state said. Questions go to the Department of Revenue’s help service.
- Other Metro taxes: see our property taxes page for the city’s largest tax bill.
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