Tennessee sales tax is among the highest in the United States. The state charges a 7% base rate on most purchases. Local governments add up to 2.75% on top of that. As a result, shoppers across the state often pay close to 10% at the register. This guide breaks down what you’ll actually pay when shopping in Tennessee. It covers rates by city, grocery taxes, tax-free weekends, and smart ways to save.
Tennessee Sales Tax Rate: The Basics
The statewide base rate is 7%. However, that number rarely reflects what you actually pay. Every county and many cities add their own local taxes. The average combined Tennessee sales tax rate is approximately 9.55%. That puts Tennessee well above the national average of 8.56%.
| Component | Rate |
|---|---|
| State Sales Tax | 7.00% |
| Maximum Local Tax | 2.75% |
| Average Combined Rate | 9.55% |
| National Average (Combined) | 8.56% |
For example, a $500 television costs about $549 in Nashville after tax. That same TV in New Hampshire would cost exactly $500. Tennessee has no state income tax. Sales tax is the primary way the state funds public services. Shoppers feel that cost directly at every checkout.
What Tennessee Does and Does Not Tax
Most tangible goods are taxable in Tennessee. Clothing, electronics, furniture, and household items all carry the full rate. However, a few important categories get special treatment. Groceries are taxed at a reduced state rate of 4% instead of 7%. Prescription medications are completely exempt from Tennessee sales tax.
| Category | Tax Status | State Rate |
|---|---|---|
| General Merchandise | Taxable | 7% + local |
| Clothing & Shoes | Taxable | 7% + local |
| Groceries (unprepared food) | Reduced Rate | 4% + local |
| Prepared Food & Restaurants | Taxable | 7% + local |
| Prescription Drugs | Exempt | 0% |
| Over-the-Counter Medicine | Taxable | 7% + local |
| Motor Vehicles | Taxable | 7% (no local tax) |
The grocery distinction matters for your weekly budget. Milk, bread, fresh vegetables, and raw meat qualify for the reduced 4% rate. However, hot deli items and prepared foods do not. In addition, over-the-counter medications like cold medicine and pain relievers are fully taxable. Only doctor-prescribed medications skip the tax entirely.
Tennessee Sales Tax by City and County
Your total Tennessee sales tax bill depends heavily on where you shop. Local rates range from 1.50% to 2.75%. Nashville and several surrounding cities charge the maximum local rate. As a result, shoppers in Davidson County pay the state’s highest combined rate of 9.75%.
| City / Area | Local Rate | Combined Rate |
|---|---|---|
| Nashville (Davidson County) | 2.75% | 9.75% |
| Murfreesboro (Rutherford County) | 2.75% | 9.75% |
| Franklin (Williamson County) | 2.75% | 9.75% |
| Memphis (Shelby County) | 2.75% | 9.75% |
| Clarksville (Montgomery County) | 2.50% | 9.50% |
| Johnson City (Washington County) | 2.50% | 9.50% |
| Knoxville (Knox County) | 2.25% | 9.25% |
| Chattanooga (Hamilton County) | 2.25% | 9.25% |
Specifically, shoppers in the Nashville metro area pay the most. However, the difference between 9.25% and 9.75% adds up fast on bigger purchases. On a $1,000 appliance, shopping in Knoxville instead of Nashville saves you $5 in tax. For large purchases, it pays to compare rates in nearby areas.
Tennessee Sales Tax Holidays
Tennessee holds an annual tax-free weekend every summer. The 2026 sales tax holiday is expected to run from Friday, July 24 through Sunday, July 26. During this weekend, both state and local Tennessee sales tax are waived on qualifying items. It is the single best time to buy back-to-school essentials.
Specifically, these items qualify during the tax-free weekend:
| Category | Price Limit | Examples |
|---|---|---|
| Clothing & Shoes | $100 or less per item | Shirts, pants, socks, dresses, shoes |
| School & Art Supplies | $100 or less per item | Backpacks, binders, pens, paper, crayons |
| Computers & Tablets | $1,500 or less | Laptops, tablets, desktop computers |
However, not everything qualifies. Cell phones, video game consoles, and most electronics are still taxable. In addition, individual clothing items priced above $100 do not qualify for the exemption. Plan your back-to-school shopping around this weekend to save up to 9.75% on every qualifying item.
Online Shopping and Tennessee Sales Tax
Shopping online does not help you avoid Tennessee sales tax. Major retailers like Amazon, Walmart, and Target collect it automatically at checkout. Tennessee uses destination-based sourcing for remote sellers. That means the tax rate is based on your shipping address, not the seller’s location.
For example, an order shipped to Nashville gets taxed at 9.75%. The same order shipped to Knoxville gets taxed at 9.25%. Some smaller online sellers may charge a flat 9.25% on all Tennessee orders instead. This simplified rate combines the 7% state rate with a standard 2.25% local portion.
In addition, marketplace platforms like eBay and Etsy also collect Tennessee sales tax on behalf of their sellers. There are very few ways to avoid it when buying online. However, you can reduce your total cost by stacking coupons and cashback offers to offset the tax.
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Smart Shopping Tips for Tennessee
Tennessee’s high combined rate means smart shopping strategies matter more here than in most states. Here are practical ways to keep your costs down.
1. Maximize the tax-free weekend. Stock up on clothing, school supplies, and computers during the July sales tax holiday. A $1,200 laptop purchase saves you up to $117 in tax alone. Plan your shopping list well ahead of the holiday dates.
2. Buy groceries strategically. Groceries are taxed at 4% instead of 7% at the state level. However, prepared deli food and hot items carry the full rate. Choosing unprepared ingredients over ready-made meals saves you about 3% on the state portion of Tennessee sales tax with every trip.
3. Use cashback apps on every purchase. Since you cannot avoid Tennessee sales tax on most items, offset it with rewards. Check our cashback app reviews for the best options. Even 2-3% cashback softens the impact of a 9.75% tax rate.
4. Compare prices across city and county lines. If you live near a county border, check whether the next county has a lower local rate. The difference between 9.75% and 9.25% saves $5 per $1,000 spent. For big-ticket items like furniture or appliances, the short drive can be worth it.
5. Time big purchases wisely. Combine online savings strategies with holiday sale events. Buying during a major sale while using cashback can recover most of what you pay in Tennessee sales tax. In addition, some retailers offer price-match guarantees that stack with other savings.
Frequently Asked Questions
What is the sales tax rate in Tennessee?
The state base rate is 7%. With local taxes added, the combined Tennessee sales tax rate ranges from 8.50% to 9.75%. Most shoppers pay between 9.25% and 9.75% depending on their city or county. The statewide average combined rate is approximately 9.55%.
Are groceries taxed in Tennessee?
Yes, but at a reduced rate. Unprepared grocery items like bread, milk, and fresh produce are taxed at 4% at the state level instead of 7%. Local taxes still apply on top of that. As a result, your total grocery tax typically falls between 6.25% and 6.75%. Prepared foods and restaurant meals are taxed at the full Tennessee sales tax rate.
Does Tennessee have a sales tax holiday?
Yes. Tennessee holds a tax-free weekend every summer, typically the last full weekend in July. The 2026 Tennessee sales tax holiday is expected to run July 24-26. Clothing and school supplies priced at $100 or less per item are exempt. Computers priced at $1,500 or less also qualify. Both state and local taxes are waived during this period.
Start Saving on Every Purchase
Now that you know your state’s sales tax rates, use that knowledge to time your purchases and stack savings. Combine tax-free shopping periods with cashback apps and coupon codes to keep more money in your pocket.
Official Sources
- Tax Foundation — state and local sales tax data
- IRS.gov — federal tax information
- FTC Consumer Information — shopping rights and protections
Rates current as of May 2026. Sales tax rates change periodically. Always verify current rates with your state’s revenue department.