How Tennessee Sales Tax Works

Tennessee sales tax is a tax added to the price of most goods when you buy them

Tennessee's statewide sales tax rate is 9.55%. This is made up of a 4% state tax plus local taxes that vary by county and city — so the total you pay depends on where you shop. When you buy something at a store, the cashier adds this tax to your bill at checkout. You do not pay it separately; it is included in what you owe.

Sales tax applies to most physical items you can touch and take home — groceries, clothing, electronics, furniture, and household goods. It does not explore to services like haircuts, car repairs, or plumbing work. Some items are taxed differently or not at all, which can be confusing when you are shopping.

Key Takeaways

• Tennessee's base sales tax is 9.55%, but the exact rate you pay depends on your county and city because local taxes are added on top of the state rate.
• Sales tax is charged on most goods at the register, not on services like haircuts or repairs.
• Groceries, prescription medications, and some medical equipment are either taxed at a lower rate or not taxed at all in Tennessee.
• Online purchases from out-of-state sellers may or may not have Tennessee sales tax added, depending on the seller's location and the item type.
• You can find your exact local sales tax rate by entering your zip code on the Tennessee Department of Revenue website.

How the 9.55% state rate breaks down

The 9.55% figure comes from two layers. Tennessee charges a 4% state sales tax on most purchases. On top of that, your county and city add their own local sales taxes. These local rates range from 1.75% to 2.75% depending on where you live, which is why the total you pay varies by location.

For example, if you live in Nashville (Davidson County), you pay 4% state tax plus 2.25% local tax, for a total of 9.25%. If you live in Memphis (Shelby County), the local rate is 2.25% as well. But in some smaller counties, the local rate might be lower. The only way to know your exact rate is to check your zip code on the Tennessee Department of Revenue website or ask a cashier.

What is and is not taxed in Tennessee

Most items you buy in a store are taxed — clothing, shoes, toys, electronics, furniture, and household supplies all have sales tax added at checkout. Food you cook at home, like raw vegetables, meat, bread, and milk, is not taxed. But prepared food — restaurant meals, deli sandwiches, bakery items ready to eat — is taxed.

Prescription medications are not taxed in Tennessee. Over-the-counter medicines like pain relievers and cold medicine are taxed. Medical equipment such as wheelchairs, walkers, and diabetic supplies may be taxed or untaxed depending on the specific item. Services like haircuts, plumbing, car repairs, and dental work are not subject to sales tax.

One common point of confusion: if you buy a greeting card, it is taxed. If you buy a book, it is taxed. Newspapers and magazines are not taxed. When in doubt at checkout, the register will calculate the tax correctly based on the item code.

How sales tax works when you shop online

Online shopping and sales tax can be tricky because it depends on where the seller is located and what they sell. If you order from a Tennessee-based business, Tennessee sales tax is added to your order. If you order from a seller outside Tennessee, they may or may not charge you Tennessee sales tax — many do not, which is why online prices sometimes look cheaper.

Large online retailers like Amazon now collect sales tax in Tennessee on most items because they have a physical presence in the state or meet federal thresholds. Smaller sellers or sellers in other states may not. The tax, if charged, appears in your cart before you complete the purchase, so you can see it before you pay.

You are not required to track and pay sales tax yourself on items purchased without it. The responsibility to collect sales tax falls on the seller, not the buyer.

When you might pay sales tax differently

Some purchases are taxed at a lower rate than the standard 9.55%. Groceries and food items for home use are taxed at 4% instead of the full local rate — you pay the state tax but not the local portion. This is a break built into Tennessee law to make food more affordable.

If you are buying items for resale (you own a business), you can provide a resale certificate to avoid paying sales tax. The tax is then paid by the person who buys the item from you. If you are a nonprofit organization, you may be able to get a tax-exempt status, but you have to register with the Tennessee Department of Revenue first.

How to find your exact local sales tax rate

Your exact sales tax rate depends on your zip code. The Tennessee Department of Revenue has a sales tax rate lookup tool on its website where you can enter your zip code and see the exact percentage you pay. This is useful if you are moving to a new area or want to know the rate before you shop.

You can also call the Tennessee Department of Revenue at 615-253-0600 to ask about your local rate. A cashier at any store in your area can also tell you the rate — they see it every day on the register.

Frequently Asked Questions

Does Tennessee have sales tax on groceries?

Groceries for home use are taxed at 4% in Tennessee, not the full 9.55% rate. This includes raw meat, vegetables, bread, milk, and other food you cook or prepare at home. Prepared foods like restaurant meals and deli items are taxed at the full rate.

Do I pay Tennessee sales tax on online orders from out of state?

It depends on the seller. Large retailers with a presence in Tennessee or that meet federal thresholds collect Tennessee sales tax. Smaller out-of-state sellers may not. The tax, if charged, shows in your cart before checkout. You are not responsible for paying it yourself if the seller does not collect it.

Is clothing taxed in Tennessee?

Yes, clothing is taxed at the full sales tax rate in Tennessee. This includes shoes, jackets, pants, shirts, and accessories. There is no clothing exemption in Tennessee like some other states have.

What is the difference between state and local sales tax?

Tennessee's state sales tax is 4%. Local sales tax is added by your county and city on top of that, ranging from 1.75% to 2.75%. Together they make up your total rate. The state portion goes to the state government; the local portion goes to your county and city.

Can I get a refund of sales tax I paid?

Sales tax is generally not refundable. If you return an item and get your money back, the sales tax is also refunded as part of that return. If you paid sales tax on something you should not have, contact the store or the Tennessee Department of Revenue to report it.