Sales Tax for Tennessee (2026)
Tennessee (TN) Key Facts
State Sales Tax Rate
7%
Has State Sales Tax
Yes
Local Taxes May Apply
Yes
Tax Type
Sales and use tax
How This Calculator Works in Tennessee
This calculator estimates the Tennessee sales tax on your purchase amount using the state rate of 7%. Enter your purchase price to see the tax amount and total cost.
Tennessee Overview
Tennessee levies a 7% state sales tax — one of the highest state rates in the country — with local taxes adding up to 2.75% for a maximum 9.75% combined rate. With no state income tax on wages, sales tax is Tennessee's primary revenue source. Groceries are taxed at a reduced 4% state rate, but local taxes still apply.
How Tennessee Compares
Tennessee's sales tax rate of 7% compares to Kentucky at 6% and Virginia at 5.3%. Combined with local rates, the effective sales tax burden varies by location.
| State | Top Rate | Notes |
|---|---|---|
| Kentucky | 6% | Kentucky has a sales tax rate of 6%. |
| Virginia | 5.3% | Virginia has a sales tax rate of 5.3%. |
| North Carolina | 4.75% | North Carolina has a sales tax rate of 4.75%. |
Tennessee's sales tax rate of 7% compares to a national average of approximately 5.10%. This is above the national average.
Tips for Tennessee Residents
- 1Tennessee's 7% state rate is one of the highest in the nation, and local taxes can add up to 2.75%, creating combined rates up to 9.75%.
- 2Groceries are taxed at a reduced state rate of 4% in Tennessee (down from 5% previously), but local taxes still apply, making the total on food about 6-7%.
- 3Tennessee has no state income tax on wages, making sales tax its largest revenue source.
- 4Tennessee holds a sales tax holiday in late July for clothing, school supplies, and computers.
- 5Nashville's combined rate is 9.25%, Memphis is 9.75% (the maximum), and most areas are in the 9-9.75% range.