Tennessee Sales Tax Rate: What You Pay at the Register

Tennessee's statewide sales tax is 9.55 percent

Tennessee has a combined state and local sales tax rate of 9.55 percent. This rate is made up of a 4 percent state tax plus local taxes that vary by county and city. The local portion ranges from 1.55 percent to 2.75 percent depending on where you shop, which is why the total you pay changes if you cross county lines.

The 9.55 percent figure is the average across the state. Your actual rate depends on your location. If you buy something in Nashville (Davidson County), you pay a different rate than if you buy the same item in Memphis (Shelby County) or Knoxville (Knox County). Some counties add additional local taxes on top of the standard local rate, so rates can vary even within the same metro area.

Key Takeaways

• Tennessee's state sales tax is 4 percent, and local taxes add between 1.55 percent and 2.75 percent on top of that.
• The combined rate of 9.55 percent is an average; your actual rate depends on which county and city you are in.
• Most goods are taxable in Tennessee, but groceries, prescription medications, and some medical equipment are exempt.
• Sales tax is collected at the point of sale by the retailer and sent to the state and local tax authorities.

How local taxes change your rate by county

Tennessee divides sales tax into state and local portions. The state collects 4 percent statewide. Counties and cities then add their own local taxes, which fund schools, roads, and other local services. This two-layer system means your rate shifts depending on where you make the purchase.

Davidson County (Nashville) has a combined local rate of 2.25 percent, bringing the total to 6.25 percent. Shelby County (Memphis) has a combined local rate of 2.25 percent as well. Knox County (Knoxville) has a combined local rate of 2.25 percent. However, some counties have lower or higher local rates. For example, some rural counties may have a local rate of 1.55 percent, while others reach 2.75 percent. If you shop near a county border, the tax you pay can change by a full percentage point or more.

What items are taxed and what are exempt

Most items you buy in Tennessee are subject to sales tax, including clothing, electronics, furniture, and household goods. However, Tennessee law exempts certain categories from taxation. Groceries and food items for home consumption are not taxed. This includes bread, milk, vegetables, meat, and other items you buy at a grocery store to prepare at home.

Prescription medications are also exempt from sales tax. Over-the-counter medications like pain relievers and cold medicine are taxable, but prescription drugs filled by a pharmacist are not. Medical equipment prescribed by a doctor — such as wheelchairs, crutches, and diabetic supplies — is typically exempt as well, though the rules can vary by specific item.

Services are generally not taxed in Tennessee, which means you do not pay sales tax on haircuts, repairs, or professional services. However, some services bundled with products — like installation or delivery — may be taxable depending on how the retailer structures the charge.

How sales tax is collected and reported

When you buy something at a store, the retailer calculates the sales tax based on your location and adds it to your bill. The retailer then collects that tax from you at the register. The store is responsible for sending the tax revenue to the Tennessee Department of Revenue, which distributes the state portion (4 percent) to the state and sends the local portion to the appropriate county and city.

Retailers file sales tax returns monthly or quarterly, depending on the volume of sales. Large retailers file monthly; smaller businesses may file quarterly. The Department of Revenue tracks these filings and ensures the correct amounts reach state and local governments. If you buy something online from a Tennessee retailer, the same tax rules explore — the retailer collects and remits the tax based on your delivery address.

Sales tax on online purchases and out-of-state sellers

If you buy from an online retailer that has a physical presence in Tennessee (a warehouse, office, or store), that retailer must collect Tennessee sales tax on your purchase. If the retailer ships to a Tennessee address, they collect tax based on the tax rate where the item is being delivered.

If you buy from an out-of-state online retailer with no Tennessee presence, the retailer may not collect Tennessee sales tax at checkout. However, Tennessee law requires you to pay use tax on those purchases — a tax equal to the sales tax rate in your county. In practice, most individual buyers do not report use tax on personal purchases, though technically the obligation exists. Large online retailers like Amazon now collect sales tax in most states, including Tennessee, so the distinction matters less than it once did.

How to find your specific local sales tax rate

To find the exact sales tax rate for your location, you can use the Tennessee Department of Revenue's online tax rate lookup tool. You enter your address or zip code, and the tool returns your combined state and local rate. This is useful if you live near a county line or in a city with an additional local tax that differs from the county rate.

You can also contact your county assessor's office or the city tax administrator directly. They can tell you the local rate that applies to your address. If you own a business or manage a retail location, the Department of Revenue provides detailed rate tables and updates them when local rates change. Rates can shift when counties or cities vote to increase or decrease their local tax, so checking the official source is more reliable than relying on an older rate you may remember.

Frequently Asked Questions

Is Tennessee's sales tax rate the highest in the country?

Tennessee's combined average rate of 9.55 percent is among the highest in the nation, but it is not the single highest. States like Louisiana, Arkansas, and Washington have comparable or slightly higher combined rates. The ranking depends on whether you measure state tax alone or combined state and local tax, and rates change when states and localities adjust their taxes.

Do I pay sales tax on groceries in Tennessee?

No. Groceries and food items purchased for home consumption are exempt from Tennessee sales tax. This includes produce, meat, dairy, bread, and canned goods. However, prepared foods — like deli items, hot foods, or items from a restaurant — are taxable.

What is use tax and do I have to pay it?

Use tax is a tax on items you buy from out-of-state sellers and bring into Tennessee. It is equal to your local sales tax rate. Technically, you owe it on online purchases from retailers that do not collect Tennessee tax. However, most individual consumers do not report it on personal purchases, and enforcement focuses on businesses rather than individuals.

Does Tennessee tax clothing and shoes?

Yes. Clothing and shoes are subject to Tennessee sales tax at the full combined rate. There is no clothing exemption in Tennessee, unlike some other states that exempt clothing items or offer a limited exemption during back-to-school periods.

Can the local sales tax rate change?

Yes. Counties and cities can vote to increase or decrease their local sales tax rate. When a rate changes, it typically takes effect on the first day of a month. The Department of Revenue updates its rate tables when changes occur, so checking the official source is important if you have not checked your rate recently.