Nashville shoppers save money on food starting Sunday

Grocery receipts in Davidson County will show a lower tax line starting Sunday, Nov. 1.

The local grocery sales tax rate drops from 2.25% to 1.75%. Metro cut its share of the tax by half a percent. This change follows a new state law that allows cities to lower rates on specific categories.

The average Nashville family is estimated to save $72 a year. That amount equals a nickel on every $10 spent at the store. The reduction applies to food and food ingredients. It does not cover alcoholic beverages, tobacco, candy, dietary supplements, or prepared food.

Mayor Freddie O’Connell included the cut in this year’s budget proposal. Metro Council approved the plan in July. The city eliminated about $9 million in spending to cover the change. Leaders worked through the fall to enact the lower rate just on groceries.

“We’re giving you this investment back in one of those areas that we know every family has those basic household costs,” O’Connell said. He said the savings may seem small at first but will add up over time. “In week one, it might only be a few bucks. But over the course of the year, it might really add up to an entire trip of groceries.”

Shoppers said the cut comes at a time of rising prices. Shemaiah Lee, a single mom, said she often worries if her food stamps will cover her bill at Kroger. “Things are priced really high recently, and it’s been hard for me to afford things even with food stamps,” Lee said.

John Hinger said he has been buying less food to stay within his budget. “It’s a baby step in the right direction,” Hinger said. Jeff Castleberry welcomed the tax reduction but warned that other taxes should not go up to cover the cost. “It’s nice to know that the city once in a while engages in reducing a tax as opposed to the other direction they usually take in raising them,” Castleberry said.

O’Connell said he is looking at lowering Metro’s grocery tax rate again next year if the budget allows. He also wants the state to look at its 4% tax on groceries. “We would love to work with the state of Tennessee to offer more of this at no cost to Tennesseans,” O’Connell said.