Tennessee sales tax is a tax added to most purchases at the point of sale

When you buy something in Tennessee, the store adds a tax to your bill. That tax goes to the state and to your local county or city. Tennessee has a base state sales tax rate of 4.55%, but your total rate depends on where you live — your county or city may add their own local tax on top of that. The final rate you pay ranges from 8.55% to 9.55% depending on your location.

The tax is calculated on the purchase price and collected by the merchant at checkout. You do not pay it separately or file anything yourself — it happens automatically when you swipe your card or hand over cash. The store then sends that money to the state and local tax authorities.

Key Takeaways

  • Tennessee's base state sales tax is 4.55%, but your actual rate includes local taxes added by your county or city, bringing totals to between 8.55% and 9.55%.
  • Most goods and services are taxed, but groceries, prescription medications, and some medical equipment are exempt.
  • The tax is added at the register — you do not calculate it yourself or file paperwork.
  • Different counties have different rates, so the same item costs different amounts in tax depending on where you buy it.

What items are taxed and what are not

Most things you buy in Tennessee are subject to sales tax. Clothing, electronics, furniture, gasoline, and restaurant meals all get taxed. However, some categories are exempt — meaning no tax is added.

Groceries are not taxed in Tennessee. That means bread, milk, vegetables, meat, and other food you take home to cook are tax-free. Prescription medications are also exempt. Over-the-counter medicines like cold medicine or pain relievers are taxed, but prescription drugs are not. Medical equipment prescribed by a doctor — such as wheelchairs, oxygen equipment, or diabetic supplies — is typically exempt as well.

Services vary. A haircut is taxed, but a doctor's office visit is not. Repairs to your home are taxed, but repairs to your vehicle may or may not be, depending on the type of repair. When in doubt, ask the merchant before you pay.

How local taxes stack on top of the state rate

Tennessee divides sales tax into two parts: the state portion and the local portion. The state takes 4.55%. Your county or city then adds their own rate on top of that, which is why the same item costs different amounts in tax depending on where you are in the state.

For example, if you live in Davidson County (Nashville), the local rate is 2.25%, making your total 6.8%. If you live in Shelby County (Memphis), the local rate is 2.25%, also making your total 6.8%. But if you live in a county with a lower local rate, your total will be lower. The lowest combined rate in the state is 8.55% (in some counties), and the highest is 9.55% (in others).

You can find your exact local rate by entering your address on the Tennessee Department of Revenue website or by asking a local business. The rate does not change based on what you buy — it is the same whether you are purchasing groceries, clothing, or gas.

When you do and do not pay sales tax

You pay sales tax whenever you make a purchase in Tennessee, whether you are a resident or visiting. If you buy something online from a Tennessee retailer, you pay Tennessee sales tax. If you buy something online from an out-of-state retailer and have it shipped to Tennessee, you may owe tax depending on the retailer's policies — many large retailers now collect it automatically.

You do not pay sales tax if you are buying an exempt item like groceries or prescription drugs. You also do not pay tax if you are buying something for resale — for example, if you own a store and buy inventory, you can provide a resale certificate to avoid paying tax on those purchases.

If you buy something in another state and bring it into Tennessee, you do not owe Tennessee sales tax on it. However, if you buy something in Tennessee and take it out of state, you still paid Tennessee tax on it — you do not get a refund.

How sales tax differs across Tennessee counties

Tennessee has 95 counties, and each one sets its own local sales tax rate within state limits. This means the tax you pay in one county may be different from the tax in a neighboring county. The difference is usually small — often just 0.25% or 0.5% — but it adds up on large purchases.

Some counties have rates at the lower end (8.55% total), while others are at the higher end (9.55% total). A few counties fall in between. If you are making a large purchase like furniture or a vehicle, you might save money by buying in a county with a lower rate, though you would need to account for travel time and other costs.

The local tax revenue goes to the county or city government for schools, roads, and public services. So the rate you pay reflects local spending decisions, not just state policy.

What happens if you do not pay sales tax

You do not have a choice about paying sales tax — it is added automatically at checkout. The merchant is responsible for collecting it and sending it to the state and local authorities. If a store fails to collect or remit sales tax, that is a problem between the store and the tax authorities, not something that affects you as a customer.

If you are a business owner or self-employed and you owe sales tax on items you sold, that is different. You are required to register with the Tennessee Department of Revenue, collect tax from customers, and file returns. If you do not, the state can assess penalties and interest. But as a regular customer making purchases, you have no filing obligation — the tax is handled at the point of sale.

Frequently Asked Questions

Does Tennessee tax groceries?

No. Groceries — food you buy to take home and cook — are not taxed in Tennessee. This includes bread, produce, meat, dairy, and packaged foods. However, prepared foods like restaurant meals, deli items ready to eat, and hot food are taxed.

What is the sales tax rate in my county?

Rates range from 8.55% to 9.55% depending on your county. You can find your exact rate by entering your address on the Tennessee Department of Revenue website, or by asking a local business or your city or county clerk's office.

Do I pay sales tax on online purchases from Tennessee companies?

Yes, if you buy from a Tennessee retailer and have it shipped to a Tennessee address, sales tax is added. Many out-of-state online retailers also now collect Tennessee sales tax automatically, though some do not.

Is sales tax added to restaurant bills?

Yes. Restaurant meals, including fast food and takeout, are taxed. The tax is calculated on the food price before you add a tip. Groceries you buy to cook at home are not taxed, but prepared food is.

Can I get a refund on sales tax I already paid?

No. Once you pay sales tax on a purchase, it is not refunded unless you return the item. If you return something, the store refunds the full amount including tax. Visitors to Tennessee do not get refunds on sales tax paid during their stay.