Tennessee's statewide sales tax is 9.55%, but your actual rate depends on your county and city
Tennessee has no state income tax, but it funds government through sales tax instead. The state sets a base rate of 9.55%, which applies everywhere in Tennessee. However, most counties and cities add their own local sales tax on top of that number. Your final rate at checkout depends on where you live or shop — it can range from 9.55% in areas with no local additions up to 10.55% or higher in some cities.
When you buy something in Tennessee, the merchant collects the combined state and local tax. You will not see these broken out separately on your receipt in most cases — the total is straightforward added to your purchase price. Understanding your local rate matters if you are budgeting for a large purchase or comparing prices across county lines.
Key Takeaways
- Tennessee's base state sales tax is 9.55%, and most counties add between 0.25% and 0.75% on top of that.
- Some cities layer an additional local sales tax, which can push your total rate to 10.55% or slightly higher depending on location.
- The tax rate you pay is determined by where the sale takes place, not where you live.
- Tennessee has no state income tax, so sales tax is the primary way the state funds schools, roads, and services.
How county and city taxes stack on top of the state rate
Tennessee divides sales tax into three layers. The state collects 9.55% on most purchases. Your county then adds its own rate — this ranges from 0.25% to 0.75% depending on which county you are in. Some counties, like Davidson (Nashville) and Shelby (Memphis), are on the higher end of that range. Others, like several rural counties, add only 0.25%.
On top of county tax, some cities add a third layer. Nashville, Memphis, Knoxville, and Chattanooga all have city sales taxes that range from 0.25% to 0.75%. A purchase in downtown Nashville, for example, would be taxed at the state rate plus Davidson County's rate plus Nashville's city rate. A purchase in a smaller town in the same county might have a lower total because that town does not add a city tax.
The combined rate you see at the register is the sum of all three layers. This is why two purchases in the same county can have different tax amounts if one happens in a city and one happens outside it.
Sales tax rates in Tennessee's largest cities
| City | County | State Rate | County Rate | City Rate | Total Rate |
|---|---|---|---|---|---|
| Nashville | Davidson | 9.55% | 0.75% | 0.25% | 10.55% |
| Memphis | Shelby | 9.55% | 0.75% | 0.25% | 10.55% |
| Knoxville | Knox | 9.55% | 0.75% | 0.25% | 10.55% |
| Chattanooga | Hamilton | 9.55% | 0.75% | 0.25% | 10.55% |
| Clarksville | Montgomery | 9.55% | 0.75% | 0.00% | 10.30% |
| Murfreesboro | Rutherford | 9.55% | 0.75% | 0.00% | 10.30% |
The four largest cities — Nashville, Memphis, Knoxville, and Chattanooga — all charge the same combined rate of 10.55%. Smaller cities like Clarksville and Murfreesboro have slightly lower rates because their counties add 0.75% but the cities themselves do not add a local tax. If you shop outside city limits in any of these areas, your rate will be lower by 0.25%.
These rates can change if a city or county votes to adjust its local tax, so if you are planning a major purchase, it is worth confirming the current rate for your specific location before you buy.
What items are taxed and what are not
Most goods sold in Tennessee are subject to sales tax, including clothing, electronics, furniture, and groceries. However, Tennessee does not tax groceries — food you buy at a supermarket to cook at home is exempt. Prepared food and restaurant meals are taxed at the full rate.
Prescription medications are not taxed in Tennessee. Over-the-counter medicines and vitamins are taxed. Services like haircuts, repairs, and professional labor are generally not subject to sales tax, though some specific services may be. If you are unsure whether a particular item or service is taxed, ask the merchant before you buy.
How to find your exact local sales tax rate
The Tennessee Department of Revenue maintains a county-by-county breakdown of sales tax rates on its website. You can search by county name to find the state and county rates. For city rates, you may need to contact the city government directly, since some cities have their own local taxes that are not always listed in a single central location.
If you are shopping online and the seller is based in Tennessee, they will charge you the sales tax rate for the address where the item is being shipped. If the seller is out of state, Tennessee law requires them to charge Tennessee sales tax on most purchases, though enforcement varies. The tax will be calculated based on the delivery address you provide.
Sales tax on online purchases and out-of-state orders
Tennessee requires out-of-state online retailers to charge sales tax on items shipped to Tennessee addresses. This applies to large retailers like Amazon as well as smaller online stores. The tax rate used is the rate for the zip code or address where the item is being delivered, not where the retailer is located.
Some smaller online sellers may not yet be collecting Tennessee sales tax. If you notice that tax was not charged on an online purchase shipped to Tennessee, you are technically responsible for reporting and paying that tax yourself through Tennessee's use tax system. In practice, most individual consumers do not file use tax returns, but the obligation exists.
Frequently Asked Questions
Is Tennessee sales tax the same everywhere in the state?
No. The state rate of 9.55% is the same, but counties add between 0.25% and 0.75%, and some cities add another 0.25% to 0.75%. Your total rate depends on exactly where the purchase happens. Two towns in the same county can have different rates if one is a city with its own tax and one is not.
Do I pay sales tax on groceries in Tennessee?
No. Food you buy at a grocery store to cook at home is not taxed. However, prepared food — meals at restaurants, deli items ready to eat, and food from convenience stores — is taxed at the full rate. This distinction is the same across all Tennessee counties and cities.
What is the sales tax rate in my county?
The Tennessee Department of Revenue website lists the state and county rates for all 95 counties. Search by county name to find the combined state and county rate. If you live in a city, add that city's local tax rate, which you can find by contacting your city government or checking the city's website.
Do I have to pay sales tax on online purchases from out-of-state sellers?
Yes. Tennessee law requires out-of-state retailers to charge sales tax on items shipped to Tennessee addresses. The rate charged is based on your delivery address. Large retailers like Amazon do this automatically. Smaller sellers may not, but you are responsible for the tax either way.
Why does Tennessee have such a high sales tax?
Tennessee has no state income tax, so it relies on sales tax to fund schools, roads, and state services. The combined state and local rate is higher than in states that use income tax, but residents do not pay income tax on wages. This trade-off is a deliberate policy choice made by the state legislature.