Tennessee has a combined state and local sales tax rate of 9.55%, ranking #1 nationally.
The Tennessee state sales tax rate is 7.00%. Local governments in Tennessee add an average of 2.55% on top, bringing the typical combined rate to 9.55%.
If you sell online and have nexus in Tennessee, you must collect 9.55% sales tax from buyers in Tennessee.
Most states exempt groceries, prescription drugs, and medical devices from sales tax. Tennessee may have additional exemptions. Always verify with the Tennessee Department of Revenue.
Property taxes, state income taxes, and deductions affect your federal return. Get clear, plain-English tax briefs from CapitalTaxBrief.com.