Tennessee has a statewide sales tax of 9.55 percent
Tennessee's base sales tax rate is 9.55 percent on most purchases. This rate combines the state sales tax (9.55 percent) with no additional local option tax at the state level, though individual counties and cities can add their own local sales taxes on top. The total you pay depends on where you shop — a purchase in one county may cost more in tax than the same purchase in another county a few miles away.
The 9.55 percent figure applies to tangible goods: clothing, groceries at checkout, electronics, furniture, and similar items. Services — haircuts, car repairs, plumbing work — are generally not taxed in Tennessee. Food you eat at a restaurant is taxed, but unprepared food you buy at a grocery store is not.
Key Takeaways
- Tennessee's statewide sales tax is 9.55 percent, but your actual tax rate depends on your county and city, which can add local taxes on top.
- Groceries and unprepared food are not taxed; restaurant meals and prepared foods are.
- Clothing and shoes under $100 per item are exempt from sales tax in Tennessee.
- Services like haircuts, repairs, and professional work are not subject to sales tax.
- Some items like prescription medications and medical devices are exempt regardless of where you buy them.
How local taxes stack on top of the state rate
While Tennessee's state sales tax is 9.55 percent, most counties and cities add their own local sales taxes. These local rates vary widely — some counties add 1.5 percent, others add 2.75 percent or more. A county in one part of the state might have a total sales tax of 9.55 percent, while a county elsewhere might be 11 percent or higher.
You cannot find a single "Tennessee sales tax rate" that applies everywhere. Your actual rate depends on the specific county and city where the purchase happens. If you order something online and it ships to a Tennessee address, the tax is based on the delivery location, not where the seller is located. The retailer's checkout will show you the exact rate before you complete the purchase.
What is not taxed in Tennessee
Groceries and unprepared food are exempt from sales tax. This means milk, bread, vegetables, meat, and canned goods you buy at a grocery store do not get taxed. However, prepared foods — sandwiches from a deli counter, rotisserie chicken, items from a hot bar — are taxed because they are considered ready-to-eat meals.
Clothing and shoes under $100 per item are exempt. A shirt that costs $75 is not taxed; a coat that costs $150 is taxed on the full amount. This exemption applies to the item itself, not the total purchase. If you buy five $20 shirts, none of them are taxed because each one is under $100.
Prescription medications and medical devices are not taxed. This includes prescription drugs filled at a pharmacy and items like diabetic test strips or hearing aid batteries when purchased with a valid prescription. Over-the-counter medications like aspirin or cold medicine are taxed as regular goods.
Restaurant meals and prepared foods are taxed
Any food you eat at a restaurant, food truck, or café is subject to sales tax. This includes fast food, sit-down dining, coffee shops, and bakery items you eat on premises. The tax applies whether you eat there or take it to go.
The line between "prepared" and "unprepared" matters. A rotisserie chicken from a grocery store hot bar is taxed. A raw chicken from the meat counter is not. A sandwich made at a deli counter is taxed. Sandwich ingredients you buy separately are not. When in doubt at checkout, the register will tell you whether an item is taxed.
Services are generally not taxed
Tennessee does not tax most services. Haircuts, car repairs, plumbing, electrical work, house cleaning, lawn care, and similar labor are not subject to sales tax. You pay the service provider's fee, but no sales tax is added on top.
There are exceptions. Certain services bundled with goods — like installation labor that is inseparable from the product — may be taxed as part of the sale. If you are unsure whether a specific service is taxed, ask the provider before you pay.
Online purchases and out-of-state sellers
When you order something online and have it shipped to a Tennessee address, you owe Tennessee sales tax on that purchase. The seller is responsible for collecting and sending that tax to the state, regardless of where the seller is located. Large online retailers collect Tennessee sales tax automatically at checkout.
If a seller does not collect Tennessee sales tax at checkout, you may owe "use tax" — a tax on purchases you made outside the state but brought into Tennessee for use. In practice, use tax is rarely enforced for individual purchases, but it is technically your responsibility. The rate is the same as the sales tax rate for your location.
Frequently Asked Questions
Do I pay sales tax on clothing in Tennessee?
Clothing and shoes under $100 per item are not taxed. Items $100 or more are taxed on the full price. The $100 limit applies to each individual item, not your total purchase.
Is restaurant food taxed differently than grocery store food?
Yes. Unprepared food from a grocery store — raw meat, vegetables, bread, milk — is not taxed. Restaurant meals, prepared deli foods, and hot bar items are taxed. The difference is whether the food is ready to eat.
What is the sales tax rate where I live?
Tennessee's state rate is 9.55 percent, but your county and city may add local taxes. The total rate varies by location. Check your receipt from a recent purchase to see your local rate, or contact your county assessor's office for the exact rate in your area.
Do I owe tax on services like haircuts or car repairs?
No. Most services in Tennessee are not taxed. You pay the service provider's fee without sales tax added. This applies to haircuts, repairs, cleaning, and similar work.
Do I have to pay sales tax on online orders shipped to Tennessee?
Yes. Online retailers must collect Tennessee sales tax on orders shipped to Tennessee addresses. The tax is based on your delivery location and is shown at checkout before you complete the purchase.