The Tennessee state sales tax rate is 7.0% in 2026. When county and city taxes are added, the combined rate ranges from 7.0% in areas with no local additions up to 9.75% in the highest-taxed jurisdictions. The most populated areas of Tennessee — including Shelby County — have a combined rate of 9.75%.
Tennessee has no state income tax and relies heavily on sales tax, generating over 60% of state revenue from it. Tennessee taxes groceries at a reduced 4% state rate. Tennessee and Texas are among the highest sales tax states without an income tax.
💡 Quick Reference: $100 purchase in Tennessee at the average combined rate costs approximately $108.38 after tax. Use the calculator above to find the exact amount for any county or city in Tennessee.
Groceries in Tennessee are taxed at reduced 4% state rate. Clothing purchases are taxable at full rate. Prescription drugs and medical devices are generally exempt from sales tax in Tennessee, as they are in most US states.
Common Tennessee Sales Tax Exemptions
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Prescription Medicine
Prescription drugs are fully exempt from Tennessee sales tax.
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Grocery Food
Unprepared groceries are taxed at reduced 4% state rate in Tennessee.
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Manufacturing Equipment
Equipment used directly in manufacturing is generally exempt.
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Agricultural Supplies
Seeds, livestock, and farm feed are generally exempt in Tennessee.
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Clothing
Clothing is taxable at full rate in Tennessee.
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Textbooks
Textbooks for educational use are often exempt or reduced rate.
How Does Tennessee Sales Tax Work?
Sales tax in Tennessee is collected at the point of purchase by retailers and remitted to the Tennessee Department of Revenue. The total rate you pay is the sum of the Tennessee state rate (7.0%) plus any applicable county and city rates in your location.
Businesses with a physical presence in Tennessee — including offices, warehouses, or employees — have sales tax nexus and must collect and remit Tennessee sales tax. Since the 2018 Supreme Court ruling in South Dakota v. Wayfair, remote sellers with $100,000+ in Tennessee annual sales or 200+ Tennessee transactions must also register and collect Tennessee sales tax even without a physical presence.
📅 Tennessee Sales Tax Filing: Returns are typically due on the 20th of the month following the reporting period. Filing frequency (monthly, quarterly, or annual) is assigned by the Tennessee Department of Revenue based on your sales volume. File and pay online through the Tennessee state tax portal.
The Tennessee state sales tax rate is 7.0% in 2026. With county and city additions, combined rates range from 7.0% to 9.75% depending on your location. The most common combined rate in populated Tennessee counties is around 8.38%. Use the calculator above to find the exact rate for your specific county and city.
Groceries in Tennessee are taxed at reduced 4% state rate. This applies to unprepared food items purchased at grocery stores. Prepared food (restaurant meals, hot food from a deli counter) is generally taxed at the full combined rate regardless of state grocery exemptions.
To calculate Tennessee sales tax, multiply your purchase amount by the combined rate (as a decimal). For example, a $200 purchase in Shelby County at 9.75%: $200 × 0.975 = $19.50 in sales tax, making the total $219.50. Or simply use the free Tennessee sales tax calculator at the top of this page.
Yes, if you meet Tennessee’s economic nexus threshold. Remote sellers must collect and remit Tennessee sales tax if they have $100,000 or more in Tennessee sales or 200+ separate Tennessee transactions in a calendar year. This applies to all online sellers including Amazon FBA sellers, Shopify stores, and marketplace sellers. Marketplace facilitators like Amazon, Etsy, and eBay collect and remit on behalf of their sellers in Tennessee.
Most services are not subject to Tennessee sales tax, which primarily applies to the sale of tangible personal property. However, certain services are taxable in Tennessee — including some digital services, repair services, and services that are inseparable from a taxable product. Consult the Tennessee Department of Revenue or a tax professional for guidance on specific service types.
The highest combined sales tax rate in Tennessee is 9.75%, which occurs in areas with the maximum local tax additions on top of the 7.0% state base rate. The lowest rate is the state base rate of 7.0% in areas with no local taxes. See the county-by-county table above for the exact rate in each area of Tennessee.