Sexton Files Bill to Cut Tennessee Grocery Tax

The House speaker's proposal would eliminate the state's 4% sales tax on milk, bread, and eggs, the first step toward broader food exemptions.

Updated on Nov. 10, 2026 in Taxes

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Tennessee House Speaker Cameron Sexton filed a bill to eliminate the state's 4% sales tax on milk, bread, and eggs, with plans to expand the exemption. AI Illustration. Upload story photo >

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Would you support eliminating Tennessee's 4% grocery tax on food staples?

Tennessee House Speaker Cameron Sexton has filed a bill to eliminate the state's 4% grocery tax on milk, bread, and eggs. Sexton says he plans to expand the exemption to other food staples, including fresh produce and meat.

Why it matters

Tennessee's grocery tax is among the highest in the country, and the bill is a scaled-back version of earlier proposals to eliminate it altogether. The move reflects ongoing debate in the state over how to ease household food costs without losing revenue.

Tennessee's grocery tax rate is 4%, and the filed bill would exempt milk, bread, and eggs from it. Savings would be modest, about $48 per year for a household spending $100 per month on these items, and the cost to state revenue has not been stated.

The players

Cameron Sexton

Cameron Sexton is the Speaker of the Tennessee House of Representatives, representing Crossville, and is the lead sponsor of the bill to cut the grocery tax.

Marsha Blackburn

Marsha Blackburn is a former U.S. senator from Tennessee who is serving as governor-elect and has proposed creating a state version of DOGE.

The details

Speaker Cameron Sexton filed the bill, which removes the 4% grocery tax on milk, bread, and eggs as currently written. Sexton says the exemption will later extend to other staples such as fresh food, vegetables, fruit, and meat, and that it targets healthier foods rather than ultra-processed ones. House Democrats have sponsored multiple bills seeking a full repeal, and Governor-elect Marsha Blackburn has proposed a state version of DOGE before committing to a grocery tax cut.

Timeline

  1. Next January: the Tennessee legislative session begins, when the bill is expected to be considered.

Legislative Context

The filed bill is a narrower follow-up to repeated House Democratic efforts to repeal the grocery tax entirely, shifting the approach to a staged exemption. Those earlier proposals included a corporate tax based on worldwide combined revenue, which set the terms of the debate over how the state would replace lost revenue.

If the bill passes as written, Tennessee shoppers would no longer pay the 4% state tax on milk, bread, and eggs. Households would save only a few dollars a month at typical spending levels, and the larger food exemption Sexton has promised would be needed to make a meaningful difference.

The takeaway

A narrower exemption is easier to pass but delivers smaller savings than a full repeal. Readers should watch the January session to see whether the broader food exemption is written into law.

Further reading

For more on how states structure sales taxes on everyday purchases, see Taxes coverage.

Live Poll

Would you support eliminating Tennessee's 4% grocery tax on food staples?