SUT-53 - Food and Food Ingredients – Definition and Tax Rate

Food and food ingredients are defined as liquid, concentrated, solid, frozen, dried, or dehydrated substances that are sold to be ingested or chewed by humans and are consumed for their taste or nutritional value. Sales of food and food ingredients are subject to a reduced state sales and use tax rate of 4%, plus the applicable local tax rate. 

Food and food ingredients do not include alcoholic beverages, tobacco, candy, dietary supplements, or prepared food. 

Reference: Important Notice 17-20. Tenn. Code Ann. §§ 67-6-102 and 67-6-228.

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