Tennessee Sales Tax Rates and What You Pay

Tennessee's statewide sales tax rate is 9.55%

Tennessee has a combined state and local sales tax that varies by county. The state portion is 9.55%, but your actual rate depends on where you make the purchase. Some counties add local sales tax on top of the state rate, which means you might pay anywhere from 9.55% to 9.75% depending on your location.

The tax applies to most goods you buy in stores, online purchases shipped to Tennessee, and many services. Groceries for home consumption are exempt — you won't pay sales tax on food you buy at a supermarket to cook at home. However, prepared food, restaurant meals, and food from convenience stores are taxed at the full rate.

When you see a price tag in a Tennessee store, that price does not include sales tax. The tax is added at checkout, so your final bill will be higher than the displayed price.

Key Takeaways

• Tennessee's state sales tax is 9.55%, but your total rate includes local taxes that vary by county, ranging from 9.55% to 9.75%.
• Groceries you buy to cook at home are not taxed, but restaurant meals and prepared foods are taxed at the full rate.
• Online purchases shipped to Tennessee are subject to sales tax just like in-store purchases.
• The sales tax you pay is added at the register — price tags show the pre-tax amount.
• Certain items like prescription medications and medical equipment may be exempt from sales tax.

How local taxes affect your total rate

Tennessee allows counties to add their own local sales tax on top of the state rate. This means the total you pay depends on which county you're shopping in. For example, Davidson County (Nashville) has a combined rate of 9.55%, while some other counties may be slightly higher due to local additions.

If you shop near a county border, you might notice the price difference at checkout. This is why some people travel to lower-tax counties for large purchases, though the difference is usually less than 1% in most cases.

You can find your specific county's rate by searching online for "Tennessee sales tax by county" or asking a cashier at checkout. The rate you see on your receipt is always the correct one for that location.

What items are taxed and what are exempt

Most physical goods are subject to Tennessee sales tax — clothing, electronics, furniture, and household items all get taxed. Services vary: haircuts and repairs are typically taxed, but some professional services are not.

Food is the biggest exemption. Unprepared groceries — raw meat, vegetables, bread, milk, and canned goods — are tax-free when you buy them to take home and cook. But the moment food is prepared for when ready consumption, tax applies. This includes restaurant meals, deli counter items, hot food from a grocery store, and fast food.

Prescription medications are exempt from sales tax in Tennessee. Over-the-counter medicines like pain relievers and cold medicine are taxed. Medical equipment prescribed by a doctor may also be exempt, though this depends on the specific item.

Online purchases and out-of-state sellers

If you order something online and it ships to a Tennessee address, you owe Tennessee sales tax on that purchase. This applies whether you buy from a Tennessee company or an out-of-state seller. The seller is responsible for collecting and sending the tax to the state.

Some online retailers may not collect Tennessee tax at checkout, but you are still legally responsible for the tax owed. In practice, most major retailers now collect sales tax on all orders shipped to Tennessee.

If you order something to be shipped outside Tennessee and then bring it into the state, you do not owe sales tax on the purchase itself. However, if you later sell that item in Tennessee, sales tax would explore to that sale.

Sales tax on services

Tennessee taxes many services, though not all. Haircuts, car repairs, appliance repairs, and cleaning services are taxed. However, some professional services like accounting, legal information, and medical care are not subject to sales tax.

When you get a service, the tax is usually added to your bill just like a retail purchase. If you're unsure whether a particular service is taxed, ask the business before you pay — they should be able to tell you what's included in your final bill.

Labor charges on repairs are taxed, but the parts themselves may or may not be, depending on the situation. For example, if you buy a part at a store, you pay tax on it. If a repair shop installs that part for you, the labor is taxed separately.

Understanding your receipt

Your receipt shows the subtotal (the pre-tax price), the sales tax amount, and the total you paid. The sales tax line tells you exactly how much tax was charged and at what rate. If you're checking your math, multiply the subtotal by your county's tax rate to see if the amount matches.

Keep receipts if you need them for returns or exchanges. Some retailers will refund the full amount including tax if you return an item within their return window. Others may refund only the pre-tax amount, so check the store's policy.

If you notice a tax rate on your receipt that seems wrong, you can ask the cashier or manager. Mistakes happen, and businesses want to charge the correct amount.

Frequently Asked Questions

Do I pay sales tax on groceries in Tennessee?

No, unprepared groceries are not taxed. This includes raw meat, fresh produce, bread, milk, eggs, and canned goods you buy to cook at home. However, prepared foods like rotisserie chicken, deli sandwiches, and hot foods from a grocery store counter are taxed at the full rate.

What is the sales tax rate in my county?

Tennessee's state rate is 9.55%, and most counties do not add local tax, so your rate is likely 9.55%. A few counties have added small local taxes, bringing the total to 9.75%. Search online for your specific county name and "sales tax rate" to confirm, or ask a cashier.

Do I have to pay sales tax on online orders?

Yes, if the order ships to a Tennessee address, Tennessee sales tax applies. Most major online retailers now collect this tax automatically at checkout. If a seller does not collect it, you are still responsible for the tax owed to the state.

Are prescription medications taxed?

No, prescription medications are exempt from Tennessee sales tax. Over-the-counter medicines like aspirin and cold medicine are taxed. If you are unsure whether a medication is taxed, ask the pharmacist before you pay.

Is sales tax added to the price shown on the tag?

Yes, the price on the tag does not include sales tax. The tax is calculated and added at checkout, so your final bill will be higher than the displayed price. This is why it's helpful to estimate the total by multiplying the subtotal by your county's tax rate.