| County | State Rate | County Rate | Combined Rate | Major City |
|---|---|---|---|---|
| Anderson County | 7% | 2.25% | 9.25% | Clinton |
| Bedford County | 7% | 2.25% | 9.25% | Shelbyville |
| Coffee County | 7% | 2.25% | 9.25% | Tullahoma |
| Davidson County | 7% | 2.25% | 9.25% | Nashville |
| Hamilton County | 7% | 2.25% | 9.25% | Chattanooga |
| Jefferson County | 7% | 2.25% | 9.25% | Dandridge |
| Knox County | 7% | 2.25% | 9.25% | Knoxville |
| Madison County | 7% | 2.25% | 9.25% | Jackson |
| Maury County | 7% | 2.25% | 9.25% | Columbia |
| Montgomery County | 7% | 2.25% | 9.25% | Clarksville |
| Rutherford County | 7% | 2.25% | 9.25% | Murfreesboro |
| Shelby County | 7% | 2.25% | 9.25% | Memphis |
| Sumner County | 7% | 2.25% | 9.25% | Gallatin |
| Williamson County | 7% | 2.25% | 9.25% | Franklin |
The Tennessee sales tax rate is 7% as of 2026. However, the total sales tax rate can range from 8.5% to 9.75% when including local taxes. The state rate is the same across the state, but local jurisdictions can add their own taxes, resulting in varying rates.
Tennessee has a unique tax system, with some items exempt from sales tax, such as groceries, prescription medication, and clothing under $100. The state also has a “single article” rule, which limits the sales tax on individual items to $1,600.
It’s essential to note that while groceries are exempt from sales tax, some prepared foods and dietary supplements may be subject to tax. Additionally, clothing and shoes under $100 are exempt, but items over $100 are taxed at the full rate.
The Tennessee Department of Revenue is responsible for collecting and administering sales tax in the state. Businesses with a physical presence or economic nexus in Tennessee must register for a sales tax permit and collect sales tax on taxable sales.
Tennessee has an economic nexus threshold of $500,000 in annual sales, which means that out-of-state businesses with sales exceeding this amount must register for a sales tax permit and collect sales tax on sales to Tennessee customers.