Tennessee Sales Tax Calculator 2026 — 7% Rate

Tennessee Sales Tax Rate: State vs Combined

The Tennessee state sales tax rate is 7%. However, most shoppers pay more than the state rate because counties and cities add their own local taxes on top. The average combined rate across all jurisdictions in Tennessee is 9.55%, according to Tax Foundation 2026 data. This means a $100 purchase could cost between $107.00 (state only) and more in high-tax localities.

What Is and Isn't Taxed in Tennessee

Tennessee taxes groceries at the full 7.0% state rate, which is notable because most states exempt essential food items. Tennessee taxes clothing purchases at the standard 7.0% state rate, plus any applicable local rates. Prescription drugs are also exempt from sales tax in Tennessee.

Tennessee Sales Tax Holidays

Tennessee holds sales tax holidays for back-to-school, food, and appliances. During a sales tax holiday, qualifying items are sold without collecting state sales tax — and sometimes local sales tax too. Check the Tennessee Department of Revenue website for exact dates, eligible items, and price limits each year.

How to Calculate Tennessee Sales Tax

To calculate Tennessee sales tax: multiply the purchase price by the applicable rate. For the state rate only: price × 7% = tax. For the combined rate: use 9.55% for an average estimate, or enter the exact local rate from your receipt or the Tennessee Department of Revenue website. Example: a $200 purchase at the 9.55% combined rate = $19.10 in tax = $219.10 total.

Tips for Accurate Sales Tax Calculations

Always confirm the exact local rate for your specific city or county — the combined average (9.55%) is a statewide mean and may differ from your actual checkout rate. Large purchases like vehicles, appliances, or electronics are where the difference between state-only and combined rates matters most. Keep receipts that show the tax rate used; this helps verify correct tax was charged and supports any refund claims for exempt purchases. If you are making a business purchase, check whether your state offers a sales tax exemption certificate to avoid paying tax on resale items.

Sales Tax Calculator Tennessee — How This Tool Works (2026)

This sales tax calculator Tennessee tool applies the 7% state rate under Tenn. Code Ann. § 67-6-202 plus your choice of the 9.55% Tax Foundation 2026 statewide combined average or a state-only figure. For a $200 taxable purchase, expect $14.00 state tax alone or $19.10 combined tax (total $219.10). Tennessee is unusual among US states because groceries are taxed at the full 7% state rate (most states exempt food), and prescription drugs are exempt — the calculator does not auto-adjust for exempt categories, so verify at checkout. Per the Tennessee Department of Revenue Sales and Use Tax page, local option surtaxes range 1.5% to 2.75% by jurisdiction, capped at 9.75% combined by state law. Updated 2026-07-15.

Sales Tax Calculator Tennessee — Nashville, Memphis, Knoxville Local Rates 2026

Local county and city surtaxes stack on top of the flat 7% state rate, so the true tax at checkout in Tennessee's biggest cities varies noticeably. In Davidson County (Nashville) the local rate is 2.25%, giving a combined 9.25% at register. Shelby County (Memphis) adds 2.25% for the same 9.25% combined. Knox County (Knoxville) also sits at 2.25% local = 9.25% combined. Rural counties like Cheatham, Hickman and Loudon top out at 2.75% local, producing the 9.75% cap set by state law. The single-article local option tax cap is $1,600 per item; luxury purchases above that threshold are billed the base combined rate on the excess, not the higher local band.

This sales tax calculator Tennessee tool uses the Tax Foundation 2026 statewide average of 9.55% for the "combined" option, which sits between the urban 9.25% and the rural 9.75%. For a receipt-exact match, look up your zip code on the Tennessee Department of Revenue sales and use tax page, then override the calculator by using the state-only 7% option and adding the local band manually. The Department publishes a full county-by-county rate schedule under Tenn. Code Ann. § 67-6-702 that updates each January and July.

Updated 2026-07-08. Source: Tennessee Department of Revenue — Sales and Use Tax.