Nashville families now save an estimated $72 per year on groceries after the city’s grocery tax dropped from 2.25% to 1.75% on November 1, 2026, per WSMV and WPLN.
Nashville grocery tax cut delivers $72 annual savings for families
75%, the first local tax cut under a new state law allowing cities to reduce grocery taxes. 5% transit tax under the Choose How You Move initiative , per WSMV .
Key numbers
| Stat | Figure | Date | Source |
|---|---|---|---|
| State grocery tax rate | 4% | 2026-10-27 | The Tennessean |
| Annual cost to eliminate state grocery tax | $800 million | 2026-10-27 | The Tennessean |
What happened
On November 1, 2026, Nashville’s grocery tax rate dropped from 2.25% to 1.75%, the first local tax cut under a new state law allowing cities to reduce grocery taxes. The change cancels out the extra 0.5% transit tax under the Choose How You Move initiative, per WSMV.
Who is affected
All Davidson County residents buying groceries—including food and food ingredients—see a nickel-off-per-$10 reduction, per WSMV. Excluded are alcohol, tobacco, candy, supplements, and prepared foods.
How much will families save?
The average family saves $72 annually, or $6 per month, according to WPLN and WSMV.
What to do next
Shoppers should notice the change immediately on receipts, with savings compounding over time, per WSMV.
Timeline of Nashville’s grocery tax cut
- July 2026: Metro Council approves the tax cut as part of the 2027 budget.
- November 1, 2026: The reduced grocery tax rate of 1.75% takes effect.
Why it matters
Mayor Freddie O’Connell framed the cut as a response to inflation, writing in a statement that “every family deserves to feel comfortable putting food on the table,” per WPLN.
What we don’t know
It remains unclear whether Nashville will pursue further cuts or push the state to eliminate its 4% grocery tax, as Mayor O’Connell has suggested, per WPLN.
What candidates say about Tennessee’s grocery tax
Democratic nominee Jerri Green and independent candidate Lauren Pinkston both support eliminating Tennessee’s 4% grocery tax, with Pinkston proposing to fund the $800 million annual cost by closing corporate tax loopholes, per The Tennessean.
Frequently asked questions
Does the tax cut apply to all groceries?
No. The cut applies only to food and food ingredients. Alcohol, tobacco, candy, dietary supplements, and prepared foods are excluded, per WSMV.
How was the $9 million revenue loss covered?
The city eliminated $9 million in spending from its budget to offset the tax cut, per WPLN.
Will Nashville consider further cuts?
Mayor Freddie O’Connell has indicated he may propose additional reductions next year, depending on budget constraints, per WPLN.
How does Tennessee’s grocery tax compare to other states?
Tennessee is one of 12 states that still taxes groceries, with a 4% rate—one of the highest in the country, per The Tennessean.
What do candidates propose to replace lost grocery tax revenue?
Independent candidate Lauren Pinkston suggests closing corporate tax loopholes and slowing incentives for large businesses to fund the $800 million annual cost of eliminating the state grocery tax, per The Tennessean.
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Sources
- Nashville grocery tax cut: How much you can save starting this weekend — wsmv.com, 2026-10-27