Tennessee Sales Tax Calculator

Tennessee’s 7% state rate and local caps

Tennessee’s general state sales tax is 7%, and counties and some cities add a local tax of up to 2.75%. The average combined rate is 9.61%, among the highest in the country. Nashville and Memphis are both at 9.75%, which is the 7% state rate plus the full 2.75% local tax.

Tennessee does not tax wages, and its sales tax is correspondingly heavy. Two rules soften it on the purchases households make most: groceries are taxed at a lower state rate, and expensive single items are partly shielded from local tax.

Groceries: 4% state rate plus local tax

Food and food ingredients are taxed at a state rate of 4% instead of 7%, and local tax still applies on top. In Memphis, with a 2.75% local rate, a $150 grocery bill carries $10.13 of tax, compared with $14.63 at the general rate.

The lower rate does not cover everything sold in a supermarket. Tennessee’s definition of food and food ingredients leaves out alcoholic beverages, candy, dietary supplements, tobacco and prepared food. A rotisserie chicken, a candy bar or a bottle of wine is taxed at the full combined rate even in a grocery store.

The single-article rule for big purchases

Local sales tax applies only to the first $1,600 of any single item. On the part of the price between $1,600 and $3,200, the state adds a 2.75% “single article” tax instead. Above $3,200, only the general state rate applies. This makes the true rate on cars, boats, appliances and furniture lower than the headline combined rate.

Worked example: a $5,000 item bought in Nashville. State tax at 7% on the full price is $350.00. Local tax at 2.75% on the first $1,600 is $44.00. The single article tax at 2.75% on the $1,600 between $1,600 and $3,200 is $44.00. The total is $438.00, an effective rate of 8.76%. Applying 9.75% to the whole price would wrongly give $487.50.

The back-to-school sales tax holiday

Tennessee’s sales tax holiday ran from 12:01 a.m. Friday, July 31, 2026 to 11:59 p.m. Sunday, August 2, 2026. During the holiday, qualifying items are free of both state and local sales tax. Online purchases qualify too, but only items bought for personal use, not for a business. Jewelry, handbags, sports and recreational equipment, software sold on its own, printer supplies and household appliances do not qualify.

• Clothing priced at $100 or less per item, including shirts, pants, shoes and dresses.
• School supplies priced at $100 or less per item, such as binders, backpacks, crayons, paper, pens and pencils.
• Computers and tablets priced at $1,500 or less. A $1,600 laptop is fully taxable; the exemption is not applied to its first $1,500.

Worked example: buying a car in Memphis

The single-article rule makes the biggest difference on vehicles. On a $25,000 car bought in Memphis, the state tax at 7% is $1,750.00. Local tax at 2.75% on the first $1,600 is $44.00, and the 2.75% single article tax on the next $1,600 is $44.00. The total is $1,838.00.

That is an effective rate of 7.35%, compared with $2,437.50 if the 9.75% combined rate applied to the whole price. The extra dollars above $3,200 only ever pay the 7% state rate. That is why the effective rate on a big purchase gets closer to 7% the more it costs.

Tennessee compared with neighbouring states

Tennessee borders eight states, tied with Missouri for the most of any state, and every one of them has a lower average combined rate in the table below. People who live near a border often notice the difference on large purchases, but use tax is still owed on taxable goods brought home to Tennessee untaxed.

Use tax and finding your local rate

Tennessee residents owe use tax if they buy taxable goods without paying Tennessee sales tax. This mostly happens with out-of-state sellers that don’t collect it, or with purchases made in states with lower rates. The same rates apply as for sales tax, including the 4% grocery rate and the single-article limits. The local rate is the one where you use the item.

Local rates in Tennessee are set locally, up to the 2.75% cap. The population-weighted average local rate is 2.61%, so most shoppers pay close to the cap. Example: a $900 TV from a non-collecting seller, used in Nashville, owes $87.75 of use tax, the same as if it had been bought in a Nashville store.