Tennessee's statewide sales tax is 9.55%, but your actual rate depends on which county and city you live or shop in
Tennessee has no state income tax, which means the state relies heavily on sales tax revenue. The base state rate is 9.55%, but most counties and cities add their own local sales taxes on top of that. Your total rate can range from 9.55% to as high as 9.75% depending on where you are in the state. The rate that applies is the one where the sale physically happens — not where you live or where the seller is based.
When you buy something in a Tennessee store, the register rings up the combined state and local rate for that location. Online purchases are more complicated: if the seller has a physical presence in Tennessee (a warehouse, office, or store), they must collect the rate for your delivery address. If they don't, Tennessee law does not require them to collect sales tax, though that landscape is shifting as federal rules change.
Key Takeaways
- Tennessee's base sales tax is 9.55%, but most counties add 1.5% to 2.75% more, making your local rate between 9.55% and 9.75%.
- The rate that applies is always the one where the purchase happens, not where you live or where the business is located.
- Some cities within counties add their own additional local tax, so two stores in the same county can have different rates.
- Groceries, prescription medications, and some medical equipment are exempt from sales tax in Tennessee.
- Online sellers with a Tennessee location must collect the rate for your delivery address; those without a location may not collect it.
How the state and local rates stack together
The 9.55% state rate breaks down as follows: 4% goes to the state general fund, 2.25% goes to education (the Education Improvement Act), 2% goes to local governments, and 1.3% is dedicated to the Tennessee Education Lottery Account. This is the floor — every purchase in Tennessee is subject to at least this amount.
On top of the state rate, each county adds its own local option sales tax. These range from 1.5% in some counties to 2.75% in others. Some counties also allow their cities to add a separate city sales tax, which can be another 0.5% to 1.5%. This means a purchase in Nashville (Davidson County) may have a different total rate than a purchase in Memphis (Shelby County) or Knoxville (Knox County), even though all three are major cities.
The Tennessee Department of Revenue publishes a complete list of rates by county and city. If you need to know your exact rate, that is the authoritative source. Local tax rates can change, and some cities adjust them periodically.
What is and is not taxed in Tennessee
Groceries and food for home consumption are exempt from sales tax in Tennessee. This includes items like milk, bread, vegetables, and meat purchased at a supermarket. It does not include prepared foods, restaurant meals, or items sold in a convenience store deli.
Prescription medications are also exempt. Over-the-counter drugs and vitamins are taxed. Medical equipment like wheelchairs, walkers, and diabetic supplies may be exempt if they meet specific criteria — the rules are detailed but worth checking if you use medical equipment regularly.
Clothing and shoes are taxed in Tennessee, with no exemption for children's clothing or any other category. Utilities (electricity, gas, water) are taxed at a reduced rate of 4% rather than the full sales tax rate. Gasoline and diesel fuel are subject to sales tax, though they also carry a separate fuel excise tax.
Sales tax rates by major Tennessee counties
| County | State Rate | Local Rate | Total |
|---|---|---|---|
| Davidson (Nashville) | 9.55% | 2.25% | 9.75% |
| Shelby (Memphis) | 9.55% | 2.25% | 9.75% |
| Knox (Knoxville) | 9.55% | 2.25% | 9.75% |
| Hamilton (Chattanooga) | 9.55% | 2.25% | 9.75% |
| Williamson | 9.55% | 1.75% | 9.30% |
| Rutherford | 9.55% | 2.25% | 9.75% |
These are the combined rates for the county as a whole. Some cities within these counties may have slightly different rates if they have added a city-level tax. Always check the specific city or zip code if you need the exact rate for a particular location.
How to find your exact local sales tax rate
The Tennessee Department of Revenue maintains a sales tax rate lookup tool on its website. You can enter your county and city, and it will show you the exact combined rate. This is the most reliable way to find your rate, especially if you live in a city that has added its own local tax on top of the county rate.
If you are a business owner or handle sales tax for a company, you will need to register with the Tennessee Department of Revenue and file monthly or quarterly returns depending on your sales volume. The department provides forms and instructions on its website. If you are a consumer, you do not need to do anything — the tax is calculated at the register or at checkout.
Sales tax on online and remote purchases
If you order something online from a seller that has a warehouse, office, or other physical location in Tennessee, that seller must collect sales tax based on your delivery address. This applies even if the seller is headquartered elsewhere. The rate collected will be the combined state and local rate for your zip code.
If the seller has no physical presence in Tennessee, Tennessee law does not require them to collect sales tax. However, federal law is moving toward requiring all remote sellers to collect, and some large marketplaces (like Amazon) already do so voluntarily. The rules are still in flux, so rates and collection practices may change.
As a consumer, you are technically responsible for paying "use tax" on out-of-state purchases where sales tax was not collected, but this is rarely enforced for individual purchases. Businesses are expected to track and report use tax on their returns.
Frequently Asked Questions
Do I pay sales tax on groceries in Tennessee?
No. Groceries and food items for home consumption are exempt from sales tax. This includes produce, meat, dairy, and packaged foods from a supermarket. Prepared foods, restaurant meals, and items from a deli counter are taxed.
What is the sales tax on a car purchase in Tennessee?
Vehicle sales are subject to sales tax at your local rate. The tax is calculated on the purchase price and is typically collected by the dealer or private seller. You will pay this tax when you register the vehicle with the Tennessee Department of Motor Vehicles.
Is clothing taxed in Tennessee?
Yes. All clothing and shoes are subject to the full sales tax rate in Tennessee. There is no exemption for children's clothing or any other category of apparel.
Do I owe sales tax on items I buy from out-of-state sellers?
If the seller collected Tennessee sales tax at checkout, you do not owe anything more. If they did not collect it and they have no physical presence in Tennessee, you are technically responsible for use tax, but this is rarely enforced for individual consumers. Large online retailers now collect tax in most states.
Can the sales tax rate change in my city?
Yes. Local tax rates can be adjusted by county and city governments. Changes are not frequent, but they do happen. Check the Tennessee Department of Revenue website or your local tax assessor's office if you think your rate may have changed.