2026 rates
Tennessee Sales Tax Calculator
The Tennessee state sales tax rate is 7%. With local additions, the average combined rate is 9.61%, rising to about 9.75% in the highest-taxing areas.
Sales tax by city in Tennessee
| City | Combined rate |
|---|---|
| Nashville | 9.25% |
| Memphis | 9.75% |
| Knoxville | 9.25% |
| Chattanooga | 9.25% |
| Murfreesboro | 9.25% |
How Tennessee sales tax works
Tennessee charges 7% at state level, and local jurisdictions add 2.61% on average for a combined rate of about 9.61%. In the highest-taxing parts of the state, local additions reach 2.75%, which puts the ceiling near 9.75%.
That combined rate ranks Tennessee number 2 of 51 US jurisdictions, 3.04% above the national average of 6.57%.
City rates inside Tennessee are not uniform. Memphis sits at 9.75% while Murfreesboro is 9.25%, a spread of 0.50% on the same product. Because most states tax on where the buyer takes delivery rather than where you ship from, that spread follows the shipping address and not your warehouse.
Owing tax and being required to collect it are separate questions. Tennessee sets its economic nexus threshold at $100,000 in sales into the state. Below that you generally have no obligation to register; above it you do, and the obligation applies from the point you cross rather than retroactively across the whole year. Check your own sales into Tennessee against that figure before you register anywhere.
Rates below are the published 2026 figures. Local rates change more often than state rates, so verify with the Tennessee revenue authority for a transaction of any size, and remember that the rate is only one input: whether the product is taxable at all, and whether shipping is taxable, both vary by state.
Tennessee sales tax questions
What is the sales tax rate in Tennessee?
The state rate is 7%. With local additions averaging 2.61%, the typical combined rate is 9.61%.
Does Tennessee have local sales taxes?
Yes. Local rates average 2.61% and go as high as 2.75%, so the combined rate depends on the buyer's address.
When do I have to register for sales tax in Tennessee?
Once your sales into Tennessee pass $100,000 you cross the economic nexus threshold and are generally required to register and collect. Below that there is usually no obligation.
How do I work out sales tax backwards from a total?
Divide the tax-inclusive total by one plus the combined rate to recover the pre-tax price, then subtract. At 9.61% you divide by 1.0961. The main calculator has a reverse mode that does this.
Is sales tax charged on shipping in Tennessee?
It depends on how the charge is presented and whether the items are taxable. Some states tax shipping when it is part of a taxable sale and others do not. Confirm the current position with the Tennessee revenue authority before setting it in your checkout.
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