Tennessee Legislature Considers Hiking Grocery Tax To 7%, Defying Trump and Hurting Low-Income Families

The Tennessee General Assembly is considering legislation to raise the grocery tax on certain items from 4% to 7%. If this legislation passes, Tennessee would have the highest grocery tax in the nation.

Rep. Sabi “Doc” Kurar (R-Springfield) and Sen. Ferrell Haile (R- Gallatin) introduced SB 2337 – HB 2570 called “Healthy Tennessee Grocery Tax Reform of 2026.” The legislation increases the grocery tax from 4% to 7%, while exempting fresh and raw foods, including raw meat, bread, and dairy products. The fiscal note shows that state revenue would increase by over $1,054,000, and local tax revenue would increase by $2,328,000; Tennessee would officially have the highest grocery tax in the nation after the 75% increase.

Critics of the legislation argue that the framing of the legislation obscures who would bear the cost of this tax increase. Lower-income families, seniors on a fixed income, and rural residents often depend on shelf-stable food to feed their families, and this legislation would increase food costs for them.

In contrast to this tax-hiking legislation, President Trump is championing an affordability agenda of lowering costs for Americans. One example is Rep. Elaine Davis (R- Knoxville) who is leading efforts to eliminate Tennessee’s grocery tax. In her February op-ed, Davis wrote, “For many Tennessee families, the weekly trip to the grocery store has become a source of stress rather than a routine errand." She added that "for parents, seniors on fixed incomes and Tennesseans living paycheck to paycheck, this tax quietly adds up month after month."

The legislation is currently moving through the General Assembly.