Tennessee has a statewide sales tax of 9.55 percent
Tennessee charges a sales tax on most goods you buy in the state. The statewide rate is 9.55 percent, but the actual tax you pay depends on where you shop. Counties and cities in Tennessee can add their own local sales taxes on top of the state rate, so the total you see at checkout varies by location.
For example, if you buy something in Nashville (Davidson County), you pay 9.55 percent state tax plus an additional local tax. In Memphis (Shelby County), the combined rate is different. The range across Tennessee runs from 9.55 percent in some areas to as high as 9.75 percent or more in others, depending on local additions.
You do not have to calculate this yourself — the register shows the final amount. But knowing the rate matters if you are budgeting for a purchase or comparing prices across different counties.
Key Takeaways
- Tennessee's base sales tax rate is 9.55 percent statewide, applied to most retail purchases.
- Counties and cities add local sales taxes on top of the state rate, so your total tax varies by where you shop.
- Groceries, prescription medications, and some medical equipment are exempt from sales tax in Tennessee.
- The combined rate in any location includes state tax plus all applicable local taxes, and the register calculates it for you.
What items are exempt from Tennessee sales tax
Not everything you buy is taxed. Tennessee excludes certain items from sales tax, most notably groceries — food you buy at a supermarket to cook at home is not taxed. This includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed, but raw ingredients are not.
Prescription medications are also exempt. If you fill a prescription at a pharmacy, you pay no sales tax on the medication itself. Over-the-counter medicines like cold remedies or pain relievers are taxed, but prescription drugs are not.
Medical equipment and supplies used to treat a specific condition may be exempt as well. Items like diabetic testing supplies, hearing aids, and mobility devices sometimes may have access to, though the rules depend on the specific item and how it is classified. If you are unsure whether a medical item is taxed, ask the retailer or check with the Tennessee Department of Revenue.
How local taxes are added to the state rate
Tennessee's sales tax system works in layers. The state collects 9.55 percent on most sales. Then your county adds a local tax — this amount varies. Some counties add 0.25 percent, others add 0.75 percent or more. Some cities add an additional tax on top of the county rate.
The result is that a purchase in one part of Tennessee may have a different total tax rate than the same purchase in another part. For instance, a county in rural East Tennessee might have a combined rate of 9.55 percent (state only), while a county in Middle Tennessee might be 9.75 percent (state plus local). The register always shows the final total, so you see the exact amount you owe.
If you want to know the exact rate for a specific location, the Tennessee Department of Revenue publishes a list of all county and city rates. You can also ask a retailer what the local rate is in their area.
What happens when you buy across county lines
The tax rate that applies is the rate where the sale happens, not where you live. If you live in one county but drive to another county to shop, you pay that county's rate at checkout. This matters most for large purchases — buying a car, furniture, or appliances in a lower-tax county can save you money compared to buying in a higher-tax county.
Online purchases are more complicated. If you order from a Tennessee retailer and have it shipped to your address, the tax rate depends on where the retailer is located and their tax policies. If you order from an out-of-state retailer, Tennessee may or may not require sales tax depending on the seller's size and whether they have a physical presence in the state. Most large online retailers now collect Tennessee sales tax on orders shipped to Tennessee addresses.
Sales tax on vehicles and large purchases
When you buy a car, truck, or motorcycle in Tennessee, you pay sales tax on the purchase price. The rate is the same as for other goods — the combined state and local rate where you buy it. If you trade in a vehicle, the sales tax applies to the difference between the new vehicle's price and your trade-in value, not the full price.
For example, if you buy a car for $20,000 and trade in a vehicle worth $5,000, you pay sales tax on $15,000. This applies to new and used vehicles bought from dealers. Private sales have different rules — check with the Tennessee Department of Revenue or your county clerk's office about tax on private vehicle purchases.
Other large purchases like furniture, appliances, and electronics are taxed the same way as smaller items — at the combined state and local rate where you buy them.
How to find the sales tax rate for your area
The Tennessee Department of Revenue maintains an official list of all sales tax rates by county and city. You can visit their website and search by location to find the exact combined rate. Many county assessor offices and city tax offices also publish this information online.
If you are shopping in a specific town or county and want to know the rate, you can also ask the cashier or call the store. Retailers are familiar with their local rate and can tell you the exact percentage that will be added to your purchase.
Frequently Asked Questions
Is Tennessee sales tax the same everywhere in the state?
No. The state rate is 9.55 percent everywhere, but counties and cities add local taxes that vary by location. The combined rate ranges across the state depending on where you shop. Check the Tennessee Department of Revenue website to find the exact rate for a specific county or city.
Do I pay sales tax on groceries in Tennessee?
No. Food you buy at a grocery store to cook at home — including bread, milk, vegetables, and canned goods — is exempt from sales tax. Restaurant meals and prepared foods are taxed, but raw ingredients are not.
What about sales tax on prescription drugs?
Prescription medications are exempt from Tennessee sales tax. Over-the-counter medicines like cold remedies are taxed, but anything you fill with a prescription is not.
Do I pay sales tax when I buy something online and have it shipped to Tennessee?
Most large online retailers collect Tennessee sales tax on orders shipped to Tennessee addresses. Smaller retailers may not, depending on their size and whether they have a physical presence in the state. The tax rate applied is usually based on where your order is being shipped.
How much sales tax do I pay when I buy a used car in Tennessee?
You pay the combined state and local sales tax rate on the purchase price, minus any trade-in value. If you buy a used car for $15,000 and trade in a vehicle worth $3,000, you pay sales tax on $12,000. The rate depends on the county where you complete the purchase.