Tennessee sales tax rates (July 1, 2026)
| State rate | 7.00% |
|---|---|
| Average local rate | 2.61% (population-weighted; your address may differ) |
| Average combined rate | 9.61% |
| Rank among the 50 states and DC | 2 of 51, where 1 is the highest combined rate |
The 7.00% state rate applies everywhere in Tennessee; local rates vary by city, county and special district, which is why the calculator lets you switch between the statewide average and your own local rate. For deliveries, the rate at the delivery address usually applies.
Sales tax on common purchases in Tennessee
| Purchase | State tax only (7.00%) | Tax at 9.61% | Total |
|---|---|---|---|
| $10 | $0.70 | $0.96 | $10.96 |
| $25 | $1.75 | $2.40 | $27.40 |
| $50 | $3.50 | $4.81 | $54.81 |
| $100 | $7.00 | $9.61 | $109.61 |
| $250 | $17.50 | $24.03 | $274.03 |
| $500 | $35.00 | $48.05 | $548.05 |
| $1,000 | $70.00 | $96.10 | $1,096.10 |
| $5,000 | $350.00 | $480.50 | $5,480.50 |
Worked example: a $250 purchase
Combined rate = 7.00% state + 2.61% average local = 9.61%
Sales tax = $250 × 0.0961 = $24.03 ($17.50 state, $6.53 local)
Total = $250 + $24.03 = $274.03
To back the tax out of a receipt total, divide by 1 plus the rate: $274.03 ÷ 1.0961 ≈ $250.00. The reverse sales tax calculator does this for any rate.
Tennessee compared with nearby states
| State | State rate | Avg. local | Combined | Tax on $250 |
|---|---|---|---|---|
| Tennessee | 7.00% | 2.61% | 9.61% | $24.03 |
| Kentucky | 6.00% | 0.00% | 6.00% | $15.00 |
| Virginia | 5.30% | 0.47% | 5.77% | $14.43 |
| North Carolina | 4.75% | 2.35% | 7.10% | $17.75 |
| Georgia | 4.00% | 3.56% | 7.56% | $18.90 |
| Alabama | 4.00% | 5.46% | 9.46% | $23.65 |
| Mississippi | 7.00% | 0.06% | 7.06% | $17.65 |
| Arkansas | 6.50% | 2.98% | 9.48% | $23.70 |
| Missouri | 4.22% | 4.22% | 8.45% | $21.11 |
Average combined rates are lower in Virginia, Kentucky, Mississippi, North Carolina, Georgia, Missouri, Alabama and Arkansas. Before shopping across the border, note that states with a sales tax also charge use tax on taxable goods bought elsewhere and brought home untaxed, and vehicles are taxed where they are registered.
What's taxed and what's exempt in Tennessee
- Groceries are taxed at a reduced 4% state rate plus local tax.
- The back-to-school holiday (July 31–August 2, 2026) exempted clothing and school supplies of $100 or less and computers up to $1,500.
Frequently asked questions
What is the sales tax rate in Tennessee in 2026?
The state rate is 7.00%. Cities, counties and districts add an average of 2.61%, for a combined average of 9.61% as of July 1, 2026.
How much is the sales tax on $100 in Tennessee?
About $9.61 at the 9.61% average combined rate, for a total of $109.61. The 7.00% state share alone is $7.00.
How does Tennessee's sales tax compare with other states?
Tennessee ranks 2 of 51 for combined state and average local sales tax, where 1 is the highest. Nearby, Virginia (5.77%), Kentucky (6.00%) and Mississippi (7.06%) are lower.
Do I pay Tennessee sales tax on online orders?
Yes, in most cases. Larger online sellers and marketplaces collect Tennessee sales tax based on the delivery address. If a seller doesn't, Tennessee residents owe use tax at the same rate on taxable items, reported directly to the state revenue department.
What else should shoppers know about sales tax in Tennessee?
Groceries are taxed at a reduced 4% state rate plus local tax.
Rates are averages for planning — not tax advice. Source: Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (rates as of July 1, 2026). Local rates vary by address and can change during the year; the Tennessee revenue department publishes the official rate for each location.