Tennessee Sales Tax Overview
As of 2026, Tennessee has an average combined sales tax rate of 9.619%, with rates ranging from 9% to 9.75% depending on your specific location. The state's sales tax is administered by the Tennessee Department of Revenue. Tennessee has one of the highest combined state and local rates nationally. With 788 tracked jurisdictions, the actual rate you pay depends on a combination of state, county, and city-level taxes applied to your zip code.
The sales tax in Tennessee is composed of multiple layers. The state sets a base rate that applies uniformly across all jurisdictions. On top of this, individual counties and cities may add their own surcharges. This layered system means that the rate you pay can vary significantly even within the same state. For example, the lowest rate in Tennessee is 9% while the highest reaches 9.75% — a spread of 0.75%.
Tennessee Tax Examples (Average Rate)
* Based on average rate of 9.619%. Actual tax depends on your zip code.
Top Jurisdictions in Tennessee
Business Compliance in Tennessee
Businesses operating in Tennessee are required to register for a sales tax permit, collect the correct rate at the point of sale, and remit taxes on a regular filing schedule (monthly, quarterly, or annually depending on volume). Failure to collect and remit the correct amount can result in penalties, interest, and audit exposure from the state revenue department. If you sell online, be aware that economic nexus laws may also require collection in Tennessee if your sales exceed certain thresholds.
Frequently Asked Questions
What is the average sales tax rate in Tennessee?
The average combined sales tax rate in Tennessee is 9.619% as of 2026. This includes state, county, and local taxes.
What is the highest sales tax rate in Tennessee?
The highest combined sales tax rate in Tennessee is 9.75% in ADAMS (37010).
What is the lowest sales tax rate in Tennessee?
The lowest combined sales tax rate in Tennessee is 9% in SMITH (37151).
How many tax jurisdictions does Tennessee have?
Tennessee has 788 tracked tax jurisdictions in our database. Each jurisdiction may have a different combined rate due to varying county and city taxes.
Does Tennessee charge sales tax on groceries?
Sales tax rules for groceries vary by state. In many states, unprepared food and grocery items are exempt or taxed at a reduced rate. Check with the Tennessee revenue department for specific exemption details, as rules can change annually.
How do I calculate sales tax in Tennessee?
To calculate sales tax in Tennessee, look up your specific zip code to find the exact combined rate. Multiply the purchase price by that rate. For example, at the average rate of 9.619%, a $100 purchase would incur $9.62 in tax.