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August Sales Tax Holiday Will Offer Temporary Inflation Relief

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Included in a series of new Tennessee legislation announced this spring is a one-month sales-tax holiday on groceries. In August, the state will experience a temporary end to its 4% sales tax on groceries.

Lawmakers passed the new bill in response to the country’s rising inflation rates, which are the highest they have been in forty years. The month-long holiday will provide direct relief for Tennesseans amid statewide skyrocketing costs of living and inflation rates.

The sales-tax holiday is included in Tennessee’s 2022-23 $52.8 billion spending plan.