The retailer said the 5% reduction in prices on both own-label and branded products would help make them more affordable.
VAT is currently charged on tampons and sanitary towels, but former chancellor George Osborne announced in his 2016 budget that he would get rid of the controversial tax.
It followed an online petition which attracted 320,088 signatures.
The supermarket said it would pass on the saving when the proposed removal of VAT came into force - which is currently expected to be 2018.
However it announced on Friday it would be reducing the price of sanitary products.
Michelle McEttrick, Tesco group brand director said: "For many of our customers, tampons, panty liners and sanitary towels are essential products.
"However, the cost of buying them every month can add up, and for many women and girls it can be a real struggle on top of other essential items.
"That's why - as a little help for our customers - we are reducing the cost of these products by five per cent."