Tennessee Sales Tax Calculator 2026

Calculate sales tax in Tennessee. Tennessee has a 7% state sales tax rate; local taxes bring the average combined rate to 9.61%. Based on current TN rates.

By Konstantin Iakovlev · Updated October 19, 2026 · Methodology

$
%
Groceries (food for home)
Clothing
Is the amount a single item?

Total Tax

$9.61

Total with Tax

$109.61

Combined Rate

9.610%

Tax Breakdown

State Tax (7.00%)$7.00
Local Tax (2.61%)$2.61
Total Sales Tax$9.61
Total with Tax$109.61

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

Tennessee Sales Tax Guide

Sales tax is the engine of Tennessee's revenue, which is why the state rate sits at a high 7% rather than the 4% to 6% common elsewhere. That 7% is only the state portion. Counties and cities add a local option tax of up to 2.75% on top, so combined rates run as high as 9.75% depending on where you shop. The tax applies to most retail goods and prepared food, and it is collected at the register by the seller. Big-ticket items are taxed differently: the local tax applies only to the first $1,600 of a single item, and the state adds a 2.75% single article tax on the part between $1,600 and $3,200, so a $30,000 car at a 2.75% local rate pays $2,100 + $44 + $44 = $2,188, not the $2,925 that 9.75% of the whole price would suggest.

Tennessee does carve out exceptions. Prescription drugs are fully exempt, and unprepared grocery food is taxed at a 4% state rate plus the local rate instead of the 7% state rate. Restaurant meals, prepared foods, candy, and dietary supplements fall under the regular rate. There is also a use tax with the same effect as sales tax: when you buy from an out-of-state seller that does not collect Tennessee tax, you owe the equivalent amount directly to the Department of Revenue. This most often comes up on large online orders, catalog purchases, and vehicles bought elsewhere and titled in Tennessee.

Tennessee Sales Tax Details (2026)

State Sales Tax Rate 7%
Local Sales Taxes Yes, 2.61% on average
Average Combined Rate 9.61% (Tax Foundation, midyear 2026)
Local Tax Note Local sales taxes up to 2.75% (combined rates as high as 9.75%)
State Income Tax None
Avg. Property Tax Rate 0.46%

Tennessee Sales Tax FAQ

What is the combined sales tax rate in Tennessee?
The state rate is 7%, and local jurisdictions add up to 2.75% on top, producing combined rates as high as 9.75% in some cities and counties; the Tax Foundation's population-weighted average for July 1, 2026 is 9.61%. The exact total depends on the address where the sale occurs, and on a single item over $1,600 the local tax stops at the first $1,600 while a 2.75% state single article tax applies to the next $1,600. Tennessee leans on this tax heavily because it has no personal income tax to fall back on.
Are groceries and prescriptions taxed in Tennessee?
Prescription drugs are exempt from Tennessee sales tax entirely. Unprepared grocery food is taxed at a 4% state rate plus the local rate, instead of 7%, while prepared foods, restaurant meals, candy, and supplements are taxed at the standard rate. The dividing line is whether the item is basic food meant for home preparation or a prepared or non-essential product.
Do I owe Tennessee use tax on online or out-of-state purchases?
Often yes. If a seller does not collect Tennessee sales tax at checkout, the buyer is responsible for remitting the equivalent use tax to the Tennessee Department of Revenue. Many large online retailers now collect automatically, but private sales, some catalog orders, and vehicles purchased out of state and titled in Tennessee can still create a use tax obligation.
Are services subject to sales tax in Tennessee?
Some are and many are not. Tennessee taxes most sales of tangible goods and a specific list of enumerated services, but professional and personal services such as legal advice or a haircut generally fall outside the tax. Because the law names taxable services individually instead of taxing services across the board, whether a given service is taxed depends on how Tennessee classifies it.

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