Franklin, Tennessee Sales Tax Rate

Corporate HQ (Community Health Systems, Tractor Supply, Clarcor, RPM Pizza), healthcare (Williamson Medical Center), retail/boutique tourism (historic downtown), professional services, real estate, Nashville suburban commuting (20 mi south)

The combined sales tax rate in Franklin 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% Williamson County rate = 9.75% combined. TN has no state income tax. Groceries at 4% state + 2.75% county = 6.75%. Franklin has the highest median household income of any city in TN.

The formula to calculate sales tax for any purchase:

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

Franklin's Corporate HQ and healthcare sector buys exactly the goods Tennessee treats specially:

• Prescription Drugs: Exempt when prescribed by a licensed practitioner
• Medical Devices: Varies — often exempt when sold to licensed facility
• Prosthetics & Orthotics: Generally exempt when prescribed
• Oxygen & Respiratory Equipment: Typically exempt for home medical use
• Diabetic Supplies: Test strips, insulin pumps, glucose monitors — generally exempt

Where an item does not qualify, the full 9.750% combined rate applies in Williamson.

For providers in Franklin, entity status decides what the purchasing department owes:

A non-profit hospital is generally relieved of tax on purchases made for its exempt purpose, and a for-profit one on the same street is not — so the entity classification decides the invoice before the item does. The line is not the building: the gift shop, the cafeteria and the parking structure are unrelated business activities and can be taxable at 9.750% inside an otherwise exempt institution, while capital equipment on the scale of an MRI or a surgical robot usually is exempt with the documentation in place. Contracted laundry, food service and medical waste each follow their own Tennessee treatment. The certificate mechanics are in the exemption certificate guide.

Life-sciences work in Franklin can tap:

• R&D Tax Credits: Federal (up to 20% of QREs); many states add their own — verify Tennessee's current program
• Equipment Exemptions: Lab equipment used in qualified research often exempt
• Clinical Trial Materials: Drugs/devices used in FDA-approved trials often exempt
• Orphan Drug Credits: Federal credit for rare disease drug development

Franklin shoppers and businesses routinely cross into 20 mi), 8 mi), Spring Hill and beyond — and in Tennessee, the combined rate can change at those lines.

• 20 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
• Spring Hill (9.75%): outside our tracked Tennessee city set — verify its current combined rate before invoicing deliveries there
• 20 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 Franklin 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 Franklin 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 Franklin: untaxed out-of-state purchases delivered here owe matching use tax — $97.50 on a $1,000 order — self-assessed to Williamson County / City of Franklin; 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.

Franklin's technology employers sell into every state's rules. SaaS and digital services taxability in Tennessee: Fully taxable as a telecommunications or software service.

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