Tennessee Reverse Sales Tax Calculator.

Tennessee has one of the highest state sales tax rates in the nation at 7%, and with county-level add-ons, most Tennessee consumers pay 9.25%–9.75% combined. Tennessee consistently ranks among the top three states with the highest average combined sales tax rates in the US.

Memphis has a combined rate of approximately 9.75% (7% state + 2.75% Shelby County). Nashville (Davidson County) is approximately 9.25%. Knoxville (Knox County) is 9.25%. Chattanooga (Hamilton County) reaches 9.25% as well. Tennessee's counties uniformly add significant amounts to the state base rate.

Tennessee has a notable provision regarding grocery taxes: the state applies a reduced 4% rate to food and food ingredients (rather than the full 7%), and most counties apply their full local rate on top. This means groceries in most Tennessee counties are taxed at approximately 5%–7% combined — still a significant tax on food compared to states that fully exempt groceries.

Tennessee has no personal income tax on wages (there is a limited Hall Tax on investment income, but this has been phased out). The state relies heavily on its high sales tax for revenue, and this is reflected in its consistently high combined rates.

Tennessee exempts prescription drugs from the full sales tax, applying a reduced rate instead. Agricultural inputs are broadly exempt. Manufacturing equipment used directly in production is exempt.

The Tennessee Department of Revenue administers the state sales tax. Economic nexus threshold is $100,000 in annual Tennessee sales. Tennessee has marketplace facilitator laws in effect.