Knoxville Sales Tax
Tennessee. Combined state + county + city. Category exemptions and how it compares to neighboring states.
Category exemptions in Tennessee
What gets taxed and what's exempt — these rules apply across the entire state of Tennessee, including Knoxville.
| 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
At 9.25% combined rate, a $500 clothing purchase normally costs $46.25in tax. On the tax-free weekend (within caps), that's $0.00.
Sales tax on common amounts
| Purchase | Tax | Total |
|---|---|---|
| $10 | $0.93 | $10.93 |
| $50 | $4.63 | $54.63 |
| $100 | $9.25 | $109.25 |
| $250 | $23.13 | $273.13 |
| $500 | $46.25 | $546.25 |
| $1,000 | $92.50 | $1092.50 |
| $5,000 | $462.50 | $5462.50 |
| $10,000 | $925.00 | $10925.00 |
Border shopping — neighboring states
For larger purchases, driving to a neighboring state with lower sales tax can save real money. Top metro sales tax in each contiguous neighbor of Tennessee.
| State | Reference city | Rate | vs Knoxville | $1,000 savings |
|---|---|---|---|---|
| Tennessee (current) | Knoxville | 9.25% | — | — |
| Kentucky | Louisville | 6.00% | -3.25% | $32.50 |
| Virginia | Virginia Beach | 6.00% | -3.25% | $32.50 |
| North Carolina | Greensboro | 6.75% | -2.50% | $25.00 |
| Georgia | Savannah | 7.00% | -2.25% | $22.50 |
| Mississippi | Gulfport | 7.00% | -2.25% | $22.50 |
| Missouri | Columbia | 7.95% | -1.30% | $13.00 |
| Arkansas | Jonesboro | 8.75% | -0.50% | $5.00 |
| Alabama | Huntsville | 9.00% | -0.25% | $2.50 |
Use tax (state where you live) may still apply on out-of-state purchases for items shipped or for registered goods like vehicles. For everyday retail walked across the border, savings are realized at point of sale.
Other cities in Tennessee
Common questions
- What is the total sales tax rate in Knoxville?
- Knoxville, Tennessee charges a combined sales tax of 9.25%. That's 7.00% state tax plus 2.25% local (county + city + special district) on top.
- Are groceries taxed in Knoxville?
- Tennessee applies a reduced rate to groceries. 4% reduced state rate (vs 7% standard); local tax adds ~2.75%
- Is clothing taxed in Knoxville?
- Yes — Tennessee taxes clothing at the full combined rate of 9.25%. Look for the Sales Tax Holiday (Last Friday-Sunday in July) when clothing < $100, school supplies < $100, computers < $1,500 are tax-free.
- How do I save on sales tax when shopping in Knoxville?
- Three levers: (1) the Sales Tax Holiday in Last Friday-Sunday in July, (2) buy exempt categories (prescription drugs), (3) drive across the border if a nearby state has a lower rate.
Full data sources and formulas: /sources.
Estimate only — not tax advice. Local sales tax rates change frequently and may include special district levies not modeled here. Verify with the retailer or local taxing authority for large purchases. Category exemption rules and tax holidays change by year — check the Tennessee Department of Revenue for current rules. Methodology → Tennessee state rate →
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