Nashville Sales Tax Rate — Economic Context & Calculation
Economic Context. Nashville is one of the fastest-growing major cities in the US, with population growth of 20%+ over the past decade.
The combined sales tax rate in Nashville is 9.250%, composed of the Tennessee state rate of 7.000% plus a local portion of 2.250%.
Nashville is known for Music City (country music capital), Broadway (honky-tonks), Grand Ole Opry, and Ryman Auditorium. Businesses operating in these sectors should verify product-specific taxability with Davidson County / Metro Nashville.
Key industries driving Nashville's economy include Healthcare, Music/Entertainment, Tourism/Hospitality, Higher Education — each may have distinct sales tax treatment under Tennessee law.
Visitor note: Broadway honky-tonks, Grand Ole Opry, Ryman Auditorium, Country Music Hall of Fame, RCA Studio B, Nissan Stadium, Bridgestone Arena, Centennial Park/Parthenon, Belle Meade Plantation, Cheekwood Estate.
The formula to calculate sales tax for any purchase:
Sales Tax Amount = Taxable Price × Combined Tax Rate
For a $150.00 purchase in Nashville: tax is $13.88 ($150.00 × 0.09250), total is $163.88.
Local Tax Authority & Special Rules in Nashville
Sales tax in Nashville is administered locally by Davidson County / Metro Nashville. Nashville's 9.
Special tax rules specific to Nashville:
- Tennessee state rate 7% + Davidson County local rate 2.25% = 9.25% combined. TN has no state income tax. Groceries taxed at reduced 4% state rate + 2.25% county = 6.25% on food. Nashville is a consolidated city-county government (Metro Nashville).
Nashville-specific: Nashville's booming music tourism (16M+ visitors annually) means a significant share of sales tax is paid by out-of-town visitors.
| Taxing Authority | Davidson County / Metro Nashville |
| State Sourcing Model | Mixed Sourcing. Local sellers source to origin, while out-of-state sellers source to destination. |
| Economic Nexus Threshold | $100,000 in gross sales, revenue-only with no transaction test, measured over the previous 12 months. |
| Filing Frequency | Monthly, Quarterly, or Annually |
| Standard Due Date | Typically on or before the 20th of the month following the filing period |
Davidson County levies a 2.
Sales Tax vs. Use Tax for Nashville Businesses & Consumers
While sales tax is collected by registered vendors at the point of sale, use tax is a self-assessed tax that applies when taxable goods are purchased from a vendor who did not collect sales tax. The rates for both are identical: 9.250%.
If you purchase equipment, software, or supplies from out-of-state merchants and no tax was charged, you are legally obligated to report and pay use tax to Tennessee Department of Revenue. Use tax audits are common — failure to accrue on untaxed invoices is a frequent audit finding.
Healthcare and Music/Entertainment and Tourism/Hospitality and Higher Education companies operating in Nashville should maintain rigorous use tax accrual procedures, especially for equipment and specialized software purchased from out-of-state vendors.
Sales Tax Registration & Permits for Nashville Businesses
Businesses with physical presence or economic nexus in Tennessee must register with Tennessee Department of Revenue before collecting tax.
Nashville's position as a hub for Music City (country music capital), Broadway (honky-tonks), Grand Ole Opry means remote sellers shipping to this city should proactively monitor Tennessee's nexus thresholds.
For full registration, filing, exemption certificate, and audit guidance, see the Tennessee sales tax guide.
Resale Certificates & Tax Record-Keeping in Nashville
Businesses in Nashville must maintain resale certificates and transaction records to comply with Tennessee tax audits. If you sell wholesale, obtain a valid resale certificate from the buyer.
Given the concentration of healthcare businesses in Nashville, auditors will scrutinize exemption documentation and out-of-state vendor invoices closely. Keep all records for at least the state-mandated retention period.
For detailed guidance, see the Tennessee sales tax page.
