Estimate only — not tax advice. For decisions specific to your situation, consult a qualified professional. See methodology and sources.
Tennessee Sales Tax
State + average local combined rate, category exemptions, and how it compares to neighbors.
State rate
7.00%
Average combined (state + local)
9.55%
Category exemptions
| Category | Rule | Detail |
|---|---|---|
| Groceries | Reduced rate | 4% reduced state rate (vs 7% standard); local tax adds ~2.75% |
| Clothing | Taxed (full rate) | Everyday apparel and footwear. |
| Prescription drugs | Exempt | Prescribed medications dispensed by a licensed pharmacist. |
Tennessee sales tax holiday
Sales Tax Holiday
When: Last Friday-Sunday in July
Items: Clothing < $100, school supplies < $100, computers < $1,500
Example: $100 purchase
- State sales tax only: $7.00
- Combined (state + average local): $9.55
- Total with combined tax: $109.55
Major cities in Tennessee
| City | Combined rate | vs state avg |
|---|---|---|
| Nashville | 9.25% | -0.30% |
| Memphis | 9.75% | +0.20% |
| Knoxville | 9.25% | -0.30% |
| Chattanooga | 9.25% | -0.30% |
| Clarksville | 9.50% | -0.05% |
Border shopping — vs neighboring states
For larger purchases, driving to a neighbor with lower combined rate can save real money.
| State | State rate | Avg combined | vs TN | Save on $1,000 |
|---|---|---|---|---|
| Tennessee (current) | 7.00% | 9.55% | — | — |
| Virginia | 5.30% | 5.77% | -3.78% | $37.80 |
| Kentucky | 6.00% | 6.00% | -3.55% | $35.50 |
| North Carolina | 4.75% | 7.03% | -2.52% | $25.20 |
| Mississippi | 7.00% | 7.07% | -2.48% | $24.80 |
| Georgia | 4.00% | 7.38% | -2.17% | $21.70 |
| Missouri | 4.23% | 8.38% | -1.17% | $11.70 |
| Alabama | 4.00% | 9.29% | -0.26% | $2.60 |
| Arkansas | 6.50% | 9.45% | -0.10% | $1.00 |
Common questions
- What is the sales tax rate in Tennessee?
- Tennessee levies a 7.00% state sales tax. With local taxes added, the statewide average combined rate is 9.55%. Actual rate at the register depends on your city and county.
- Does Tennessee tax groceries?
- Tennessee applies a reduced rate to groceries. 4% reduced state rate (vs 7% standard); local tax adds ~2.75%
- Does Tennessee have a sales tax holiday?
- Yes. Tennessee runs Sales Tax Holiday last friday-sunday in july. Eligible items: clothing < $100, school supplies < $100, computers < $1,500.
- Who collects sales tax in Tennessee?
- The Tennessee Department of Revenue collects state-level sales tax; counties and cities add local rates that are remitted through the same return. Out-of-state sellers shipping to Tennessee must collect if they exceed economic nexus thresholds (typically $100k in sales or 200 transactions).
Full data sources and formulas: /sources.
Estimate only — not tax advice. Local rates vary by city and county — your actual rate at the register may differ from the state average. Category-specific exemptions (groceries, prescription drugs, clothing) and tax holidays change by year; check the Tennessee DOR for current rules. All states →
Last reviewed: · Beforeview Editorial · editorial policy