What Items are Tax Free in Tennessee?

What items are tax free in Tennessee?
What items are eligible? Apparel that costs $100 or less per item. This does not include jewelry, handbags or sports and recreation equipment. School supplies, including binders, backpacks, writing and art supplies and other items that cost $100 or less per item. Computers for personal use that cost $1,500 or less.
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The tax laws of Tennessee are one of the reasons behind the state’s reputation for having a comparatively low cost of living. Tennessee levies a sales tax, which can build up for both locals and visitors, notwithstanding the absence of an income tax in the state. For people who live in or shop in Tennessee, there are several things that are free from sales tax, which can help to lower the overall cost of living.

Groceries are among the most prominent instances of tax-free goods in Tennessee. In Tennessee, food purchased for domestic consumption is exempt from sales tax, which can result in considerable financial savings for families who shop locally for their groceries. As long as they are meant for consumption at home, both prepared foods and raw ingredients are excluded from this rule. Sales tax is still applicable to non-food items including soft drinks, candies, and other items.

Clothing falls under another category of tax-exempt goods in Tennessee. Tennessee exempts apparel purchases (including footwear) that cost less than $200 per item from state sales tax year-round, unlike several other states that only allow tax-free shopping on the weekends. Families with school-age children who need to buy clothing and supplies for back-to-school can benefit greatly from this exemption.

Unlike some other states, Tennessee does not have a tax-free weekend every year, however there are occasionally exclusions from the sales tax on certain items. For instance, Tennessee provided a sales tax holiday on particular supplies for disaster preparedness in 2020, such as flashlights, batteries, and generators. Before making travel arrangements to go shopping, make sure you are aware of the specifics because these holidays are typically publicized in advance and only apply to certain products. Moving away from products that are free from taxes, car registration is an additional cost that Tennessee residents must pay. The age and weight of the vehicle are two variables that affect how much it costs to register an automobile in Tennessee. For instance, the registration fee for a normal passenger car that is under three years old is $89.75, while the fee for a car that is between three and eight years old is $74.75. Specialty plates, personalized plates, and other choices come with extra costs.

The average cost of auto insurance in Tennessee is $671 for the bare minimum of coverage and $1,853 for full coverage. However, depending on variables like age, driving history, and region, these rates can vary dramatically. To make sure you’re receiving the best bargain on auto insurance, it’s always a good idea to comparison shop.

In conclusion, Tennessee does have a sales tax, although some things are exempt from it, such as groceries and clothing that costs less than $200 per item. Periodically, there are also sales tax breaks for particular goods. A car’s weight and age affect the cost of registration, and characteristics like age and driving record can have a big impact on how much it costs for auto insurance.

FAQ
What is 8.25 sales tax?

The majority of taxable products and services purchased and sold in Tennessee are subject to an 8.25% sales tax.

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