Are groceries tax-free in Tennessee? For these three months, they are Your grocery bill will be a little smaller thanks to a sales-tax holiday passed in the Tennessee legislature this year . Foregoing the grocery sales tax is estimated to cost the state $288 million in revenue and save the average family about $100. The tax holiday was included in GoV Bill Lee's Tennessee Works Tax Act which also cut taxes for small businesses and made several changes to the state's tax laws . Tennessee is one of 13 states that still imposes a sales tax on groceries. Take a look at when Tennessee's grocery tax holiday is, what it includes and more When is Tennessee - grocery tax holiday? The holiday began Tuesday, Aug 1 and will continue for the next three months through Oct 31. What's included in TN grocery tax holiday? The tax holiday applies to "food and food ingredients that are "sold to be ingested or chewed by humans and are consumed for their taste or nutritional value. That includes s...