Collierville, Tennessee Sales Tax Rate

Corporate/business services (FedEx, Medtronic, Smith+Nephew have operations), retail (historic square and modern shopping), healthcare (Methodist Le Bonheur), logistics (I-385 corridor), education (strong public schools drive real estate demand)

The combined sales tax rate in Collierville is 9.750%, composed of the Tennessee state rate of 7.000% plus a local portion of 2.750%. On a receipt, that stacks up as: 7% state rate + 2.75% Shelby County rate = 9.75% combined. TN has no state income tax. Groceries at 4% state + 2.75% county = 6.75%. Collierville is one of the fastest-growing and most affluent Memphis suburbs.

The formula to calculate sales tax for any purchase:

For a $150.00 purchase in Collierville: tax is $14.63 ($150.00 × 0.09750), total is $164.63.

Collierville's retail gravity centers on Historic Town Square, and every register there rings the full 9.750% combined rate. The rate follows the transaction's sourcing, not the storefront's sign — three situations retailers here get wrong:

• In-store pickup vs. delivery: a picked-up order taxes at the store's rate; a delivered order follows Tennessee's sourcing rules to the customer's address
• Store locations near boundary lines: two branches of the same chain can sit in different local-tax jurisdictions — configure POS per location, never per brand
• Returns & exchanges: refund the tax actually charged at sale, even if the rate has since changed

An online order delivered into Collierville carries the same 9.750% as the counter at Historic Town Square — a $250 cart picks up $24.38 in tax either way.

• Marketplace orders: Tennessee's facilitator law makes the platform collect and remit for third-party sellers
• Direct e-commerce: out-of-state sellers past $100,000 in gross sales, revenue-only with no transaction test, measured over the previous 12 months. must register and collect
• Untaxed deliveries: when no tax is charged, the buyer owes matching use tax to Shelby County / City of Collierville

Collierville shoppers and businesses routinely cross into 25 mi), 8 mi), 12 mi) and beyond — and in Tennessee, the combined rate can change at those lines.

• 25 mi): outside our tracked Tennessee city set — verify its current combined rate before invoicing deliveries there
• 8 mi): outside our tracked Tennessee city set — verify its current combined rate before invoicing deliveries there
• 12 mi): outside our tracked Tennessee city set — verify its current combined rate before invoicing deliveries there
• 10 mi): outside our tracked Tennessee city set — verify its current combined rate before invoicing deliveries there

Deliveries are taxed by the destination rules Tennessee applies, not by where the store sits — when an order ships across one of these city lines, re-check the rate for the exact address.

Since South Dakota v. Wayfair, a seller with no premises, staff or stock anywhere near Collierville can still be required to register in Tennessee and charge 9.750% on what it ships here — presence stopped being the trigger and volume took over. The thresholds that decide it are in the table below; what they do not tell you is that crossing them obliges you to collect at the buyer's local rate, not a state average, which is why Collierville and its neighbours have to be priced separately. The registration mechanics and the trailing-twelve-month counting rules are in the economic nexus guide.

Audit & Compliance Warning: Because combined tax rates combine state and local tax components, calculating tax based purely on ZIP codes can lead to errors. Many ZIP codes span multiple municipal boundaries with differing rates. For precise auditing, always use address-level geo-lookup.

Three obligations follow the 9.750% rate around Collierville: untaxed out-of-state purchases delivered here owe matching use tax — $97.50 on a $1,000 order — self-assessed to Shelby County / City of Collierville; sellers with physical presence or economic nexus must register before collecting; and wholesale sales need a valid resale certificate on file at transaction time. Filing mechanics, exemption certificates, and audit preparation are covered in the Tennessee sales tax guide.

Collierville carries significant industrial activity. Manufacturing equipment purchases may qualify for exemptions — verify with Shelby County / City of Collierville.

Collierville hosts educational institutions affecting local tax dynamics. Textbook taxability and student purchasing rules vary by state — verify with the campus bookstore and Shelby County / City of Collierville.