Tennessee Sales Tax Calculator 2026

Tennessee Sales Tax Rate Quick Facts

Tennessee has a 7.00% state sales tax rate, and the average combined state and local sales tax rate is about 9.61%. Tennessee is a high-rate state-plus-local sales tax state, so the final tax depends on the county, city, local rate, delivery location, food classification, single-article rules, software/SaaS treatment, remote seller status, marketplace collection, and whether the sale involves groceries, prepared food, clothing, hotel rooms, vehicles, digital products, or services.

How to Use the Tennessee Sales Tax Calculator

For a quick statewide estimate, use about 9.61%. For a more accurate calculation, use the exact county/city local rate. For food and food ingredients, use the reduced 4.00% state rate plus applicable local tax. For prepared food, restaurant meals, candy, dietary supplements, alcohol, and tobacco, use the full 7.00% state rate plus local tax. For expensive single items, use the single-article calculation instead of a simple full-price local-tax calculation.

How Tennessee Sales Tax Works

Tennessee has a 7.00% state sales and use tax rate for most taxable tangible personal property and taxable services. Local jurisdictions add local sales and use tax, and all local jurisdictions in Tennessee have a local rate (max 2.75%). This makes Tennessee one of the highest combined-rate sales tax states.

Tennessee also has a reduced state rate for food and food ingredients (4.00%), and an important single-article rule: local tax generally applies only to the first $1,600 of a single article, with a separate 2.75% state single-article tax on the portion over $1,600 and up to $3,200.

Tennessee Sales Tax Formula

Tennessee Sales Tax Examples

Major Tennessee City Sales Tax Rates

Verify every city and county rate using Tennessee's official local sales tax rate map or rate database. Local rates can vary by county and incorporated city.

Why Sales Tax Varies in Tennessee

Tennessee sales tax varies because the state rate is only one part of the final rate. Local jurisdictions add local sales and use tax, and all have a local rate (max 2.75%). Food adds another layer — qualifying food uses the reduced 4.00% state rate. Large single items add yet another layer with local tax limited to the first $1,600 and an additional state single-article tax.

What Is Taxable in Tennessee?

Online Purchases and Remote Sellers in Tennessee

Remote sellers without physical presence in Tennessee must register and collect Tennessee sales and use tax if they make more than $100,000 in sales to Tennessee customers during the previous 12-month period. Marketplace facilitators have the same threshold. There is no separate 200-transaction threshold in the standard current rule.

Tennessee Food and Grocery Notes

Food and food ingredients are taxed at a reduced 4.00% state rate plus applicable local tax. Prepared food, candy, dietary supplements, alcoholic beverages, and tobacco do not qualify for the reduced rate and are taxed at the full 7.00% state rate plus local tax. Groceries are reduced-rate, not tax-free.

Tennessee Single Article Tax Notes

For a single article, the 7.00% state tax applies to the full price. Local tax generally applies only to the first $1,600. A separate 2.75% state single-article tax applies to the portion over $1,600 and up to $3,200. Amounts over $3,200 are not subject to the state single-article tax, but the 7.00% state tax still applies to the full price.

Tennessee Software, SaaS, and Digital Product Notes

Computer software is taxable in Tennessee when provided on tangible media, delivered electronically, loaded or programmed into a computer, or remotely accessed from a Tennessee location. This makes many SaaS subscriptions, cloud software platforms, and remote-access software products taxable when accessed from Tennessee.

Tennessee Sales Tax Holiday Notes

Tennessee has an annual back-to-school sales tax holiday covering qualifying clothing, school supplies, and computers within price limits. Exclusions can include accessories, protective equipment, business-use items, software, and computer parts. Verify current-year dates and eligible items with the TN Department of Revenue.

Common Tennessee Sales Tax Mistakes

• Using only the 7.00% state rate and ignoring local tax.
• Treating groceries as tax-free when TN has a reduced 4% state rate, not exemption.
• Applying reduced food rate to prepared food, candy, supplements, alcohol, or tobacco.
• Applying local tax to the full price of a single article above $1,600.
• Forgetting the 2.75% state single-article tax on the $1,600 to $3,200 portion.
• Treating SaaS as exempt because the software is not downloaded.
• Ignoring setup or customization charges included in remotely accessed software sales.
• Missing the $100,000 remote seller threshold.
• Forgetting marketplace facilitator collection rules.

Tennessee Sales Tax for Businesses

Businesses selling in Tennessee should register and file through TNTAP. The state rate is 7.00% (4.00% for food). Local rates apply in all jurisdictions and reach 2.75%. Sellers of expensive items must understand single-article rules. Remote sellers and marketplace facilitators must monitor the $100,000 threshold.

Official Tennessee Sales Tax Sources

• TN Department of Revenue — Sales and Use Tax
• TN DOR — Local Sales Tax Rate Map
• TN DOR — Single Article Guidance
• TN DOR — Food and Food Ingredients Guidance
• TN DOR — Remotely Accessed Software Guidance
• TN DOR — Remote Seller Guidance
• TN DOR — Sales Tax Holiday
• TN DOR — TNTAP
• Streamlined Sales Tax — TN Guidance
• Tax Foundation — State Sales Tax Rates

Last reviewed: June 2026. Rates and rules can change.