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Tennessee Sales Tax Holiday Could Be a Boon to Main Street Businesses

Tennessee Sales Tax Holiday Could Be a Boon to Main Street Businesses

July 21, 2025

67 cents of every dollar spent at a small business remains in the community

NFIB State Director Jim Brown says Tennessee shoppers should support small, independent businesses during this weekend’s sales tax holiday.

Shoppers won’t pay sales tax on clothing, school supplies, and computers under a certain price from Friday, July 25, through Sunday, July 27. Click here to learn more.

“This weekend is an excellent opportunity for Tennesseans to make the most of their budgets while investing in the local businesses that serve their communities,” Brown said. “Small businesses are essential to our economy. They provide employment, support our schools, and consistently give back through charitable contributions and community sponsorships.”

“When you shop local, more of your money stays in Tennessee,” he added. “On average, 67 cents of every dollar spent at a small business remains in the community. Additionally, another 50 cents is generated through local wages and supply chain purchases. That kind of economic multiplier keeps our towns healthy and our neighbors employed.”

This year’s tax holiday comes at a time when Tennessee small businesses are working through a complex economic environment. According to the latest NFIB Small Business Economic Trends report, the national Small Business Optimism Index ticked down slightly in June to 98.6, just above its 51-year average. Concerns about taxes, excess inventory, and uneven consumer demand remain top challenges.

“Every purchase at a small business this weekend helps Tennessee’s economy,” Brown said. “It’s a small way to make a big difference.”

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