Tennessee Sales Tax on Food and Meals Tennessee: Sales Tax Handbook


Are Food and Meals subject to sales tax?

While Tennessee's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of food and meals in Tennessee, including catering and grocery food. To learn more, see a full list of taxable and tax-exempt items in Tennessee.

In the state of Tennessee, any charges for optional services are not considered to be taxable. In addition, any voluntary gratuities that are distributed to employees are also not considered to be taxable.

Grocery Food
In the state of Tennessee, all food and food ingredients will be taxed at a reduced rate of 5.25%.

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Source: http://www.salestaxhandbook.com/tennessee/sales-tax-taxability/food-and-meals