Tennessee has a statewide sales tax of 9.55 percent

Tennessee charges 9.55 percent sales tax on most retail purchases. This rate combines the state sales tax of 9.55 percent — one of the highest in the country. The rate is the same across the state; it does not vary by county or city.

The 9.55 percent you see at checkout includes the state portion. Some items are taxed at a lower rate or not taxed at all, depending on what you buy. Groceries, prescription medications, and certain medical equipment are either untaxed or taxed at a reduced rate.

Key Takeaways

  • Tennessee's statewide sales tax is 9.55 percent on most purchases, with no local variation.
  • Groceries for home consumption are not subject to sales tax in Tennessee.
  • Prescription medications and certain medical devices are exempt from sales tax.
  • Restaurant meals, prepared foods, and takeout are taxed at the full 9.55 percent rate.
  • Online purchases from out-of-state sellers are subject to Tennessee sales tax if the seller has a physical presence in the state.

What items are not taxed in Tennessee

Groceries purchased for home consumption are not taxed. This includes bread, milk, vegetables, meat, and other food items you prepare yourself. The exemption does not cover hot or prepared foods, even if you buy them at a grocery store.

Prescription medications are also exempt from sales tax. Over-the-counter medications like pain relievers and cold medicine are taxed at the full rate. Medical equipment prescribed by a doctor — such as wheelchairs, crutches, and oxygen equipment — is typically not taxed, though you may need to show a prescription or doctor's note.

Certain services are not subject to sales tax, including haircuts, dry cleaning, and vehicle repairs. Labor charges on repairs are generally not taxed, but parts and materials often are.

What is taxed at the full 9.55 percent rate

Restaurant meals, takeout, and prepared foods are all taxed at 9.55 percent. This includes food from fast-casual chains, pizza delivery, and deli counters. The distinction between grocery store and restaurant is whether the food is ready to eat when you buy it.

Clothing and shoes are taxed at the full rate. There is no clothing exemption in Tennessee, even for children's clothing or basic items. Electronics, appliances, furniture, and most other retail goods are also taxed at 9.55 percent.

Gasoline and diesel fuel are taxed, though the tax is built into the per-gallon price you see at the pump. Alcohol — beer, wine, and liquor — is taxed at the full sales tax rate, plus excise taxes that vary by type.

How sales tax works on online purchases

If you buy from an online retailer that has a warehouse, office, or other physical location in Tennessee, you owe Tennessee sales tax on that purchase. This applies even if you order from out of state. The retailer is responsible for collecting and sending the tax to Tennessee.

If you buy from a seller with no physical presence in Tennessee, the retailer is not required to collect Tennessee sales tax at checkout. However, Tennessee law requires you to pay "use tax" on those purchases — essentially the same as sales tax, but paid by the buyer instead of the seller. Most people do not pay use tax voluntarily, and Tennessee does not actively pursue individual buyers for unpaid use tax.

Major online retailers like Amazon, Walmart, and Target have distribution centers or offices in Tennessee and collect sales tax on orders shipped to Tennessee addresses.

Sales tax on vehicles and large purchases

Vehicle purchases are subject to sales tax in Tennessee. The tax is calculated on the purchase price of the car, truck, or motorcycle. If you trade in a vehicle, the sales tax is applied to the difference between the new vehicle's price and the trade-in value, not the full purchase price.

Real estate — buying a house or land — is not subject to sales tax. However, you may owe other taxes and fees related to the purchase, such as transfer taxes or recording fees, which vary by county.

Heavy equipment and machinery used in manufacturing or agriculture may may have access to for exemptions or reduced rates, but these require specific documentation and are handled differently than retail purchases.

How to understand your receipt

Your receipt shows the subtotal before tax, the tax amount, and the total. The tax amount is calculated by multiplying the taxable subtotal by 9.55 percent. If you bought non-taxable items like groceries alongside taxable items, only the taxable items are included in the tax calculation.

Some receipts break down tax by category — for example, showing tax on clothing separately from tax on other items. This is optional and depends on how the store's system is set up. The total tax owed should always equal 9.55 percent of the taxable purchases.

If you notice a discrepancy — for example, if groceries were taxed when they should not have been — you can ask the cashier or store manager to review the receipt. Mistakes happen, and most stores will correct them on the spot.

Frequently Asked Questions

Do I pay sales tax on groceries in Tennessee?

No. Groceries purchased for home consumption — including produce, meat, dairy, bread, and canned goods — are not subject to sales tax. Hot foods from a deli counter or prepared meals are taxed at the full 9.55 percent rate.

Is clothing taxed in Tennessee?

Yes. All clothing and shoes are taxed at 9.55 percent, including children's clothing and basic items. Tennessee has no clothing exemption.

Do I owe sales tax on items I buy from out-of-state websites?

If the seller has a physical location in Tennessee, yes — they collect tax at checkout. If they do not, Tennessee law says you owe use tax on the purchase, but this is rarely enforced for individual buyers.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of sale. Use tax is a tax on items you buy from out-of-state sellers with no Tennessee presence — you are supposed to pay it yourself, but enforcement is minimal for individual purchases.

Are prescription medications taxed in Tennessee?

No. Prescription medications are exempt from sales tax. Over-the-counter medications like aspirin and cough syrup are taxed at the full 9.55 percent rate.