Taxes in Tennessee
Every state-level tax in Tennessee, in one place—income, sales, property, corporate, estate, transfer, and excise taxes. Figures sourced from the IRS, U.S. Census Bureau, and Tax Foundation.
Tennessee collects no individual income tax, so its revenue picture rests heavily on consumption and excise charges instead. The state's combined sales tax ranks 2nd of 51 nationally, the second-highest position measured, which places unusual weight on purchases to generate revenue. Its beer tax sits at 1st of 51, the top rank, marking that specific excise as a standout source as well. Together these two rankings point to a system that draws substantially from what residents buy and drink rather than from what they earn. No single alternative tax beyond these stands out in the data provided.
State income tax
None no state income tax.
Sales tax
The combined state + local sales tax rate is 9.61%. State rate 7.00% plus an average 2.61% local.
Estate & inheritance tax
Tennessee imposes no state estate or inheritance tax—only the federal estate tax applies.
Real estate transfer tax
Tennessee levies a transfer tax of 0.037% — Documentary stamp tax.
Cigarette Tax
Tennessee levies a cigarette tax of $0.62 per pack of 20. Federal excise adds $1.01 per pack.
Gas Tax
Tennessee levies a gas tax of 27.40¢ per gallon. Federal excise adds 18.4¢ per gallon. Excludes local taxes and environmental/carbon-related costs.
Beer Tax
Tennessee levies a beer tax of $1.287 per gallon. Federal excise adds $0.113–$0.581 per gallon depending on brewery size.
Wine Tax
Tennessee levies a wine tax of $1.270 per gallon. Federal excise adds $1.07 per gallon (11% still wine). MS, NH, PA, UT, WY are control states with no published excise rate.
Spirits Tax
Tennessee levies a spirits tax of $4.460 per gallon. Federal excise adds $5.40 per gallon (40% ABV). NH and WY are control states with an effective $0.00 rate.
Property tax by county
The state's median county effective property tax rate is 0.47%. Compare counties below for local rates.
Counties in Tennessee by property tax rate
| County | Effective rate | Median home value |
|---|---|---|
| Shelby County | 0.97% | $249,100 |
| Lake County | 0.67% | $97,900 |
| Gibson County | 0.66% | $156,900 |
| Dyer County | 0.63% | $166,400 |
| Hardeman County | 0.63% | $121,700 |
| Haywood County | 0.62% | $152,400 |
| Hamilton County | 0.61% | $312,800 |
| Montgomery County | 0.61% | $280,200 |
| Davidson County | 0.60% | $417,400 |
| Lauderdale County | 0.59% | $143,200 |
| Crockett County | 0.58% | $158,900 |
| Sullivan County | 0.58% | $213,300 |
| Carroll County | 0.58% | $142,400 |
| Coffee County | 0.57% | $246,800 |
| Cocke County | 0.57% | $158,100 |
| Clay County | 0.56% | $136,400 |
| Madison County | 0.56% | $211,800 |
| Hawkins County | 0.54% | $176,300 |
| Anderson County | 0.54% | $239,400 |
| Houston County | 0.54% | $172,700 |
| Perry County | 0.53% | $126,900 |
| Franklin County | 0.53% | $236,900 |
| Lawrence County | 0.53% | $194,400 |
| Roane County | 0.53% | $232,900 |
| Morgan County | 0.52% | $166,300 |
| Unicoi County | 0.52% | $189,600 |
| Washington County | 0.52% | $249,000 |
| Chester County | 0.52% | $164,400 |
| Obion County | 0.52% | $133,600 |
| Carter County | 0.51% | $168,200 |