Tennessee's state sales tax rate is 7%. When city and county taxes are added, the average combined rate across the state is 9.55%, and rates can reach as high as 10.25% in some areas. Use the calculator above to find the exact tax and total for any purchase.
- State rate: 7% - average combined (state + local): 9.55%
- Groceries: Reduced (4%) | Prescription drugs: Exempt
- Tennessee ties Louisiana for the highest average combined sales tax in the US at 9.55%. With no state income tax, Tennessee relies heavily on sales tax. Groceries are taxed at a reduced 4% state rate.
- The national average combined rate is 7% (Tax Foundation, 2026).
How to calculate Tennessee sales tax
Enter your ZIP code in the calculator above for the exact local rate at your address - the tool matches it instantly and auto-fills the rate. Without a ZIP, it defaults to Tennessee's 9.55% average combined rate. At that average, a $100 item costs $109.55 total.
The formula is straightforward:
- Tax amount = Pre-tax price x (Rate / 100)
- Total price = Pre-tax price + Tax amount
To reverse the calculation (find the pre-tax price from a total you already paid), switch to Remove tax mode. The formula is: Pre-tax price = Total / (1 + Rate / 100).
The default rate in the calculator is 9.55% - Tennessee's statewide average combined rate. If you know your specific city or county rate, enter it in the rate override field for a more precise result. City rates for Tennessee's major areas are listed in the table below.
Tennessee sales tax rates 2025
Tennessee's tax structure puts it above the national average combined rate of 7%. Here is a breakdown of the rate structure (Tax Foundation, 2026):
| Rate type | Rate | Notes |
|---|---|---|
| State rate | 7% | Applies statewide on all taxable items |
| Average local rate | 2.55% | City and county additions vary by location |
| Average combined | 9.55% | State + typical local - what most residents pay |
| Maximum combined | 10.25% | Highest rate found anywhere in the state |
| National average | 7% | For comparisonr |
What is exempt from Tennessee sales tax?
Not all purchases are taxed equally in Tennessee. Key exemptions reduce the tax burden on essentials. Prescription drugs are exempt - a standard exemption in most states. Groceries are reduced (4%), which has a significant impact on household budgets.
| Category | Tennessee treatment |
|---|---|
| Groceries / food | Reduced (4%) |
| Prescription drugs | Exempt |
| OTC medications | Taxable |
| Clothing | Taxable |
Exemptions are set at the state level but may not override local taxes. When a category is "exempt" from the state rate, local taxes may still apply in some jurisdictions. Always confirm with your local tax authority for high-value purchases.
Sales tax by city in Tennessee
Combined sales tax rates vary significantly across Tennessee's cities and counties. The figures below represent the total combined rate (state + county + city) as of 2024-2025. Use the rate override field in the calculator to apply your exact local rate.
| City | Combined rate | vs. state avg |
|---|---|---|
| Nashville | 9.75% | +0.20% |
| Memphis | 9.75% | +0.20% |
| Knoxville | 9.75% | +0.20% |
| Chattanooga | 9.25% | -0.30% |
To find the combined rate for a specific address in Tennessee, use the Avalara rate lookup tool or check your city or county government website.
Remove tax: find the pre-tax price
If you have a receipt and want to know what the item cost before tax, you need the reverse sales tax calculation. This is common when comparing advertised prices, calculating business expenses, or verifying a charge.
The reverse formula divides the total by (1 + rate). At Tennessee's 9.55% average rate: Pre-tax = Total / 1.0955. For example, if you paid $109.55, the pre-tax price was $100.00 and the tax was $9.55.
Use the Remove tax mode in the calculator above. Enter what you paid, and the tool instantly splits out the pre-tax price and the tax amount.
Tennessee sales tax tips
A few practical tips for shopping and doing business in Tennessee:
- Use the combined rate, not just the state rate. The 7% state rate understates what you actually pay in most of Tennessee. The 9.55% average combined rate is the more useful benchmark.
- Check for tax-free weekends. Several states run annual tax holidays on clothing and school supplies. Check the Tennessee Department of Revenue website for current year dates.
- Exemption documentation. If you are buying exempt items (resale, manufacturing, agriculture), you typically need to provide an exemption certificate. Keep copies for your records.
- Online purchases. If you buy from an online seller with economic nexus in Tennessee, Tennessee sales tax applies at your delivery address rate. Small sellers below the economic nexus threshold (usually $100,000 in annual sales) may not collect it.
Frequently asked questions
What is the sales tax rate in Tennessee?
Tennessee's state sales tax rate is 7%. When local taxes are factored in, most residents pay around 9.55% - the statewide average combined rate. Rates can reach as high as 10.25% in some cities or counties.
Are groceries taxed in Tennessee?
Groceries in Tennessee are: Reduced (4%). Prescription drugs are exempt, and OTC medications are taxable.
How do I calculate sales tax in Tennessee?
Multiply the pre-tax price by the decimal form of the rate. At Tennessee's 9.55% average: Tax = Price x 0.0955. A $50 item has a $4.78 tax, making the total $54.77. Use the calculator on this page for instant results.
How do I remove sales tax from a total in Tennessee?
Divide the total by 1.0955 to get the pre-tax price. For example, if you paid $109.55, the pre-tax price was $100.00. Switch to Remove Tax mode in the calculator above to do this automatically.
How does Tennessee's sales tax compare to other states?
Tennessee's 9.55% average combined rate is above the national average of 7%. See our US sales tax map to compare all 50 states side by side.