Calculate sales tax on any purchase in Tennessee. The state sales tax rate is 7%, and when combined with the average local rate of 2.55%, the total average in Tennessee comes to 9.55%. Actual rates vary by city and county.
Tennessee Sales Tax Rates
- State Rate
- 7%
- Avg Local Rate
- 2.55%
- Combined Average
- 9.55%
Quick Reference
Tennessee has no income tax but one of the highest combined sales tax rates averaging over 9.5%.
State income tax: None
Tennessee Sales Tax Table
Quick reference for common purchase amounts at the 9.55% combined average rate:
| Purchase Price | Sales Tax | Total |
|---|---|---|
| $10 | $0.95 | $10.96 |
| $25 | $2.39 | $27.39 |
| $50 | $4.78 | $54.77 |
| $100 | $9.55 | $109.55 |
| $250 | $23.88 | $273.88 |
| $500 | $47.75 | $547.75 |
| $1,000 | $95.50 | $1095.50 |
| $2,500 | $238.75 | $2738.75 |
| $5,000 | $477.50 | $5477.50 |
Understanding Tennessee Sales Tax
Sales tax in Tennessee is collected at the point of sale on most tangible goods and some services. The state portion of 7% is uniform statewide, while local jurisdictions may add their own rates, averaging 2.55% across the state. Certain items like groceries and prescription medications may be exempt or taxed at reduced rates.
When budgeting in Tennessee, remember that sales tax affects your purchasing power. With a median home value of $275,800 and a property tax rate of 0.64%, understanding all taxes helps you make informed financial decisions.