How to get the most out of the state grocery tax holiday

The holiday kicked off on Aug. 1.
Tennesseans began taking advantage of the state’s grocery tax holiday on Tuesday, with the state estimating it will save families about $100.
Published: Aug. 1, 2023 at 6:25 PM CDT
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NASHVILLE, Tenn. (WSMV) - Tennesseans began taking advantage of the state’s grocery tax holiday on Tuesday, with the state estimating it will save families about $100.

So, how can you get the most out of it?

Financial advisors say not to rush to the grocery store and buy food items that expire in bulk. Instead, keep your spending habits at the grocery store about the same, though it would be acceptable to stock up on some non-perishable groceries.

“It’s a good little reprieve from the inflation that we’ve seen, so take advantage of it while it’s here but don’t go out and buy in bulk unless it’s things that you know you’re going to be eating,” Myles Zueger with Adams Wealth Partners said.

The three-month grocery tax holiday ends October 31, and it’s estimated to save Tennesseans up to 6.75 percent in state and local option sales tax on food and food ingredients.

Zueger advises any leftover money from the tax holiday can be the start of a plan to build your savings.

“That’s better than nothing,” Zueger said. “It gets that person to develop that muscle and get some discipline in saving and investing versus just going out and spending that money like they have been doing.”

In total, Tennesseans are expected to save about $273 million in taxes over the next three months.