Tennessee is renowned for its cuisine, hospitality, and music. Nevertheless, taxes can be a little perplexing. Whether Tennessee levies a sales tax on groceries is one of the most frequent queries. Yes, although there are a few exceptions.
Tennessee has a 7% sales tax that is levied on the majority of physical commodities, including food and drinks. There are a few exceptions to this rule, though. For instance, the state sales tax rate applies if the meal is meant to be consumed on the premises, like in a restaurant or café. However, if the food is meant to be consumed elsewhere, as in a grocery store or supermarket, it is only subject to a 5% reduced sales tax rate.
Let’s look at the sales tax on $100 to get an idea of how much you may anticipate paying in Tennessee. In Tennessee, you must pay $7 in sales tax for every $100 you purchase on taxable items. You only need to pay $5 in sales tax if the taxable items are groceries meant for consumption away from the premises.
Let’s now discuss which state will have the highest sales tax in 2021. With a combined state and local sales tax rate of 9.47% as of July 2021, California has the highest sales tax rate in the country. Alaska, which has no statewide sales tax, has the lowest sales tax rate of any state.
It’s actually rather easy to obtain a tax exempt number in Tennessee if you’re wondering how to go about doing so. By completing an application form on the Tennessee Department of Revenue website, you can request a tax exempt number. Your company’s details and the justification for the tax exemption must be included in the application.
In conclusion, even though Tennessee levies a sales tax on goods, the rate is lower for consumption outside of a business. Although the state levies a 7% sales tax, groceries purchased for consumption off-site only incur a 5% tax. In 2021, Alaska will have the lowest sales tax while California will have the highest. Last but not least, obtaining a tax exemption number in Tennessee is simple and may be done online via the Department of Revenue website.