Tennessee Sales Tax Calculator
Calculate the exact sales tax for any purchase in Tennessee. Get instant breakdowns of state, county, and city taxes. Updated with current 2026 rates.
TN Base State Rate: 7% (up to 9.75% combined)
Davidson
Total Amount
$109.25
$100.00 + $9.25 tax
Tax Components
Tennessee Sales Tax Highlights
Tennessee has a 7% state sales tax
Groceries taxed at reduced 4% state rate
Combined rates up to 9.75%
No state income tax
Tennessee Sales Tax FAQ
What is Tennessee's sales tax rate?
Tennessee has a 7% state rate (4% on groceries). Combined rates average 9.55% and can reach 9.75%.
Tennessee Sales Tax Rate Structure in 2026
Tennessee imposes one of the highest state sales tax rates in the U.S. at 7%. Local taxes (county and city combined) add 1.5% to 2.75%, bringing combined rates to a maximum of 9.75%. The statewide average combined rate is approximately 9.55%.
Tennessee has no state income tax on wages, making sales tax the state's largest source of revenue. This explains the higher-than-average rates compared to states that rely on income tax.
| Area | State Rate | Local Rate | Combined Rate |
|---|---|---|---|
| Nashville (Davidson Co.) | 7% | 2.25% | 9.25% |
| Memphis (Shelby Co.) | 7% | 2.25% | 9.25% |
| Knoxville (Knox Co.) | 7% | 2.25% | 9.25% |
| Chattanooga (Hamilton Co.) | 7% | 2.25% | 9.25% |
| Clarksville (Montgomery Co.) | 7% | 2.75% | 9.75% |
Tax-Exempt Items and Special Rules in Tennessee
Tennessee taxes groceries at a reduced state rate of 4% (down from the full 7%). Local taxes still apply to groceries at the full local rate. Prescription drugs are exempt from Tennessee sales tax. Clothing is fully taxable.
| Category | Taxable? | Notes |
|---|---|---|
| Groceries (unprepared food) | Reduced rate — 4% state | Local tax still applies at full rate |
| Prepared food / restaurant meals | Taxable — 7% state | Full combined rate |
| Clothing | Taxable | No exemption |
| Prescription drugs | Exempt | Requires valid prescription |
| Over-the-counter medicine | Taxable | Full rate |
| Motor vehicles | Taxable | 7% state rate, local taxes capped at $36 |
| Industrial machinery | Exempt | Must be used in manufacturing |
Tennessee holds an annual sales tax holiday (typically late July) for back-to-school shopping. During this period, clothing under $100, school supplies under $100, and computers under $1,500 are exempt from state and local tax.
Filing and Compliance for Tennessee Sales Tax
The Tennessee Department of Revenue administers all state and local sales tax collection. Businesses must register for a Sales and Use Tax Account. Filing frequency depends on tax liability: businesses owing more than $400/month file monthly, and smaller sellers file quarterly.
Tennessee requires remote sellers to collect sales tax once they exceed $100,000 in annual sales to Tennessee buyers. Marketplace facilitators must collect on behalf of third-party sellers since October 1, 2020.
| Filing Detail | Requirement |
|---|---|
| Economic nexus threshold | $100,000 in annual Tennessee sales |
| Marketplace facilitator rule | Yes — effective October 1, 2020 |
| Filing frequency | Monthly (>$400/mo) or Quarterly |
| State agency | Tennessee Department of Revenue |
| Late filing penalty | 5% per month on unpaid tax, up to 25% |
Related Calculators
Official References
This calculator uses current sales tax rates based on official sources:
- TN DOR
Official Tennessee tax authority
Tax rates are updated regularly but may change. Always verify current rates with local tax authorities for official transactions.