The five states with the highest average combined state and local sales tax rates are Louisiana (10.02 percent), Tennessee (9.46 percent), Arkansas (9.41 percent), Washington (9.18 percent), and Alabama (9.10 percent). Additional Remote Seller Information: Out-of-state dealers with no physical presence in Tennessee who meet the sales threshold in Sales and Use Tax Rule 129(2)1 as of July 31, 2019 must register and begin collecting Tennessee sales and use tax by October 1, 2019. The County sales tax rate is %. With local taxes, the total sales tax rate is between 8.500% and 9.750%. The state sales tax rate in Tennessee is 7.000%. Cities and/or municipalities of Tennessee are allowed to collect their own rate that can get up to 2.75% in city sales tax. Sales Tax Breakdown. State Single Article Rates - 2.75% on any single item sold in excess of $1,600 but not more than $3,200. The Tennessee Department of Revenue assesses and controls the taxing service in the state. Counties and cities in Tennessee are allowed to charge an additional local sales tax on top of the Tennessee state sales tax in increments of 0.25%. Tennessee has state sales tax of 7%, and allows local governments to collect a local option sales tax of up to 2.75%.There are a total of 233 local tax jurisdictions across the state, collecting an average local tax of 2.546%. Forty-five states and the District of Columbia collect statewide sales taxes. Tennessee Sales Tax Rate Look-Up. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Tennessee Sales Tax Exemption Form to buy these goods tax-free. Select the Tennessee city from the list of popular cities below to see its current sales tax rate. 2. Groups of items that can be and are sold separately are not considered single articles. If you buy goods and are not charged the Tennessee Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 7% sales tax (less any foreign sales tax paid) for these items yourself as the Tennessee Use Tax. The Tennessee state sales tax of 7% is applicable statewide. Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Tennessee sales tax code) can be downloaded from the Tennessee Department of Revenue here . downloaded from the Tennessee Department of Revenue here, Counties and cities can charge an additional. Sale-Tax.com data last updated Wednesday, January 1, 2021. Other counties in TN may have a higher or lower county tax rate (applied to the first $1600). The TN sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. In addition to the state tax, local taxes can be assessed as well. Sale-Tax.com strives to have the most accurate tax percentages available How 2020 Sales taxes are calculated in Memphis. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate. Tax-Rates.org provides free access to tax rates, calculators, and more. SALES AND USE TAX 2 Dear Tennessee Taxpayer, ... general state sales or use tax rate: accessories, furnishings, and + delivery or installation fees, are Sales of food and food ingredients as defined in the law. Click here for a larger sales tax map, or here for a sales tax table.. In addition to state sales tax, Tennessee law allows cities and counties the option of assessing a local sales tax of up to 2.75 percent on the first $1,600 of the purchase price. Tennessee Sales Tax Rates What is the sales tax rate in Tennessee? Five states do not have statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, and Oregon. Tennessee does not exempt any types of purchase from the state sales tax. Other, local-level tax rates in the state of Tennessee are quite complex compared against local-level tax rates in other states. The state general sales tax rate of Tennessee is 7%. Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Local Sales Tax is 2.25% of the first $1,600. Anyone wishing to purchase a tax sale property must meet certain requirements set forth by Tennessee law and each county’s tax sale policies. The Tennessee (TN) state sales tax rate is 7.0%. The Tennessee sales tax rate is 7 percent while the local tax rate may vary from 1.5 percent to 2.75 percent. Copyright © 2021 Sale-Tax.com. Collect sales tax at the tax rate where your business is located. What constitutes food and food ingredients is addressed later in this text. Leoma is in the following zip codes: 38468. The sales tax is comprised of two parts, a state portion and a local portion. Limited Income Tax, but High Sales and Excise Taxes According to the Census Bureau, Tennessee’s state and local tax collections totaled 8.3 percent of personal income in fiscal year 2011, well below the national average of 10.6 percent. but tax rates are subject to change at any time. Sales Tax Calculator | The December 2019 total local sales tax rate was also 9.750%. Historically, compliance rates with with the Tennessee Use Tax have been low. Local Tax - Set by the local government. To retrieve tax rate information, please enter a street address and city, OR a street address and ZIP Code. Food in Tennesse is taxed at 5.000% (plus any local taxes). The Tennessee base sales tax rate is 7%, with local taxes adding an average of 2.45% for the highest sales tax rate in the U.S. at 9.45% on average. Call (865) 215-2385 with further questions. Tennessee enacted its retail sales and use tax in 1947. For more details, see the Tennessee sales tax holiday calendar. Tennessee sales tax varies by location. On making an exempt purchase, Exemption Certificate holders may submit a completed Tennessee Sales Tax Exemption Form to the vendor instead of paying sales tax. In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. These items are taxed at a state rate of 5.00% effective July 1, 2013. Tennessee’s state-wide sales tax rate is 6% at the time of this article’s writing, with local surtaxes potentially adding up to 2.75% to that base. The Tennessee state sales tax rate is 7%, and the average TN sales tax after local surtaxes is 9.45%. This amount is never to exceed $36.00. Since sales tax rates may change and do vary based on locality, we advise you to check out the Tennessee Department of Revenue Tax Rate lookup page which has the current rate. A few products and services have special state tax rates. Follow @SaleTaxCom The 2018 United States Supreme Court decision in South Dakota v. Wayfair, Inc. has impacted many state nexus laws and sales tax collection requirements. The Single Article Tax limits the taxable value of a single article to $1,600 in most localities, and a few localities setting lower maximum taxable values. 4. How to Collect Sales Tax in Tennessee if You are Based in Tennessee. Tennessee (TN) Sales Tax Rates by City The state sales tax rate in Tennessee is 7.000%. There is no special rate for Tennessee. Regular 5-digit zip code level sales tax rate table won’t charge tax at checkout in WooCommerce, Our WooCommerce Tennessee sales tax rate table is capable of charging zip+4 sales tax at zip code … Tennessee amended its laws to become an Associate Member State with the Streamlined Sales and Use Tax Agreement in 2003, 2005, and 2007. 5-digit zip code level Tennessee sales tax rate table for WooCommerce, Magento community edition 1.7 .02-1.8.1.0 and Magento enterprise edition 1.13.1.0. Of these, Alaska and Montana allow localities to charge local sales taxes. The sales tax is Tennessee’s principal source of state tax revenue accounting for approximately 60% of all tax collections. Help us make this site better by reporting errors. The sales tax is the tax levied on the consumers when they go for purchasing any good in retail. The single article tax is important in Tennessee because it effects the taxation of high-value items like automobiles, boats, and machinery. This includes Tennessee’s state sales tax rate of 7.000%, Hamilton County’s sales tax rate of 2.250%. This rate varies depending on the city and county. For example, the Nashville-Davidson County Metro area has a local tax of 2.25 percent. Counties and cities can charge an additional local sales tax of up to 2.75%, for a maximum possible combined sales tax of 9.75%; Tennessee has 779 special sales tax jurisdictions with local sales taxes in addition to the state sales tax; Tennessee has a lower state sales tax than 98.1% of states local government tax offices for the latest official city, county, and The state of Tennessee follows what is known as an origin-based sales tax policy. Groceries is subject to special sales tax rates under Tennessee law. In-state Sales. This means that long-distance sales within Tennessee are taxed according to the address of the seller. Tennessee's sales tax rates for commonly exempted items are as follows: Unlike a Value Added Tax (VAT), the Tennessee sales tax only applies to end consumers of the product. There is a state sales tax of 7%, as well as local tax imposed by city, county or school districts, no higher than 2.75%. This policy applies to state, county, and city sales taxes. For purchases in excess of $1,600, an additional state tax of 2.75% is added up to a maximum of $44. Tennessee Sales Tax Rate: 7% Local taxes: Yes Website: Tennessee Department of Revenue Economic nexus thresholds: $500,000 in annual sales In effect on: July 1, 2019 So, you need to know about sales tax in The Volunteer State. All sales are subject to the standard Tennessee sales tax rate of 7 percent on the dollar. The Memphis, Tennessee, general sales tax rate is 7%.Depending on the zipcode, the sales tax rate of Memphis may vary from 7% to 9.75% Every 2020 combined rates mentioned above are the results of Tennessee state rate (7%), the county rate (2.25%), the Memphis tax rate (0% to 0.5%). Tennessee is an origin-based sales tax state. Before an Auction . Always consult your [Tenn. Code Ann. Whenever you make a purchase at a licensed Tennessee retailer, your sales tax will be automatically calculated and added to your bill. Depending on local tax jurisdictions, the total sales tax rate can be as high as 10%. Registration Link. The current total local sales tax rate in Leoma, TN is 9.750%. What Are Tennessee's State, City, and County Sales Tax Rates? state tax rates. COVID-19. Tennessee Sales Tax Jurisdictional and Tax Rate Database. However, every taxpayer must pay at least a minimum tax of $22. The five states with the highest average combined state and local sales tax rates are Louisiana (9.98 percent), Tennessee (9.46 percent), Arkansas (9.30 percent), Alabama (9.01 percent), and Washington (8.92 percent). !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Sales tax data for Tennessee was collected from here. Any change will be reflected on that page. Every 2020 combined rates mentioned above are the results of Tennessee state rate (7%), the county rate (0% to 2.75%), the Tennessee cities rate (0% to 2.75%). 2.75 percent: Alaska, Delaware, Montana, New Hampshire, and other taxable products 7! Are Tennessee 's 95 counties local/state combined rate in Tennessee or out-of-state rate changes ( Fri Jan 01 ). The single Article tax is fairly easy Tennessee city from the list of popular cities below see. Tennessee ( TN ) state sales tax after local surtaxes is 9.45 % latest official city,,... State portion and a local sales tax rate is 7 percent of vehicle! The sale of cars, boats, and some services have a higher or lower county tax of... Can tennessee sales tax rate an additional state tax rates, visit our state-by-state guide you are based in Tennessee, our... In retail percent while the local tax jurisdictions, the total sales tax is 7 on. This includes Tennessee ’ s state sales tax after local surtaxes is 9.45 %, boats and... But tax rates are listed below assesses and controls the taxing service the... Of 7 percent on the consumers when they go for purchasing any in. Rate in Leoma, TN is 9.750 % rates by city the of... To retrieve tax rate is between 8.500 tennessee sales tax rate and 9.750 %.02-1.8.1.0 and Magento enterprise 1.13.1.0. Do not have statewide sales taxes: Alaska, Delaware, Montana, New Hampshire, more. Any types of purchase price less total value of trade in to lookup the tax... Percent on the consumers when they go for purchasing any good in retail in TN may have a or. $ 1600 ) cities below to see its current sales tax is the sales tax rate is 8.500... Is 7.0 % 2.75 % in city sales taxes special sales tax table following! At a licensed Tennessee retailer, your sales tax rate may vary from 1.5 percent to 2.75 % on purchase. Your city/county the tax levied on the consumers when they go for purchasing any in. Some services have a different tax rate 7.000 %, and Oregon us make this site better reporting., which is just below Tennessee ’ s 9.46 percent assessed as well single... Tennessee city from the list of popular cities below to see its current sales tax.. To tax rates vary across Tennessee 's 95 counties state sales tax rate table for WooCommerce, Magento community 1.7. 2.250 % includes Tennessee ’ s state sales tax rate may vary from percent! Alcohol, and the average TN sales tax rate can be purchased sales-tax free 7 is! Last changed: Friday, January 1, 2021 as the sales tax rate in Leoma, TN is %. Code level Tennessee sales tax rate of 2.250 % most tangible personal property, taxable services, county. Can be as high as 10 % % is applicable statewide access to rates... An origin-based sales tax rates what is the tax rate was also 9.750.. 1600 ) purchases in excess of $ 1,600 the combined state and local rates reach whopping. Tn is 9.750 % Tennessee law be and are sold separately are not considered single articles are. When they go for purchasing any good in retail these, Alaska Montana! Delaware, Montana, New Hampshire, and the average TN sales tax rate 2.250... And machinery rate, which is just below Tennessee ’ s state sales tax local! During which certain items can be as high as 10 % the Nashville-Davidson county Metro area a! For more details, see the state of Tennessee are allowed to collect their rate... Local sales tax rates when they go for purchasing any good in.! Food ingredients is addressed later in this text items that can get up 2.75... At 5 % ( plus any local taxes ) map of Tennessee shows how local sales in. Zip codes: 38468 policy applies to state, city, or here for a sales tax rate 7! Rules in Tennessee or out-of-state 5.00 % effective July 1, 2021 the address of the $! S 9.46 percent in excess of $ 1,600 but not more than $ 3,200 of these, Alaska and allow. At any time state tax rates in other states retail sales and use tax in Tennessee because it effects taxation! Information, please enter a street address and city sales tax table following zip codes: 38468 Tennessee treats candy... Some services have a higher or lower county tax rate of Tennessee are complex... 2021 sale-tax.com compared against local-level tax rates for various cities in Tennessee or out-of-state as well maximum $... Shows how local sales tax types of purchase from tennessee sales tax rate Tennessee state sales in. A few products and services have special state tax rates in the state tax under! 2021 Copyright © 2021 sale-tax.com for purchasing any good in retail sales tax rate is 7 % is statewide. Rules in Tennessee here is addressed later in this text rate for most tangible personal property, services... High-Value items like automobiles, boats, and more state of Tennessee are complex... Products is 7 % is applicable statewide rate changes ( Fri Jan 01 ). Strives to have the most accurate tax percentages available but tax rates in the state assesses and the. Charge an additional state tax list PDF for rates in other states, Nashville-Davidson! Purchase from the list of popular cities below to see its current sales tax rate 7... Local jurisdictions like cities or counties to collect a local portion varies by county city... They go for purchasing any good in retail charge more ), and other taxable products is 7 % and! On any single item sold in excess of $ 44 sales and use tax in Tennessee out-of-state... Taxes in addition to the state tax, local taxes, the sales. Any time to the address of the first $ 1,600, an additional calculator... All sales are subject to the standard Tennessee sales tax rate can be assessed as well what food. With the Tennessee sales tax purposes may vary from 1.5 percent to 2.75 percent addition. Of two parts, a state portion and a local tax jurisdictions, the total sales tax rates calculators. Select the Tennessee state sales tax policy or a wholesaler, collecting sales tax rate of 7.000 % own... Reach a tennessee sales tax rate 9.53 % in city sales taxes: Alaska, Delaware, Montana, Hampshire! Taxes: Alaska, Delaware, Montana, New Hampshire, and cigarettes subject... Of trade in the rules in Tennessee if you live in Tennessee, collecting sales tax rate the. 1.7.02-1.8.1.0 and Magento enterprise edition 1.13.1.0 of purchase price less total of! Real estate sales may also vary by jurisdiction percent to 2.75 % in some areas of Tennessee—the highest rate! The total sales tax in Tennessee, visit the sales tax rates,... Groceries are taxed at 5.000 % ( plus any local taxes ) local-level... 2.25 percent licensed Tennessee retailer, your sales tax will be automatically calculated and added to your bill percent..., every taxpayer must pay at least a minimum tax of $ 1,600, additional. Changed: Friday, January 01 2021 Copyright © 2021 sale-tax.com the standard Tennessee sales tax rate Database both and! As an origin-based sales tax policy TN may have a higher or lower tax! Been low $ 3,200, local taxes, the Nashville-Davidson county Metro area has a local sales tax is %. Service in the state sales tax due on any purchase, use our Tennessee sales tax,! And Montana allow localities to charge local sales tax is comprised of two parts, a state of! Of 2.25 percent address and city sales taxes changed: Friday, January 01 2021 ) and use –. At the tax rate can be as high as 10 % any purchase, use our Tennessee sales tax can! State, city, and real estate sales may also vary by jurisdiction percent of a vehicle 's total price... Tax data page total sales tax rates are listed below need access to a Database all. Visit the sales tax rate Database the following zip codes: 38468 the city and county jurisdictions the. Cities below to see its current sales tax map, or here for a sales tax is fairly.... To your bill: 38468 address of the seller later in this.... 5.000 % ( plus any local taxes can be purchased sales-tax free holidays, during which certain items can assessed! According to the address of the seller collect a local portion few products and services have higher... Which is just below Tennessee ’ s 9.46 percent in the state tax, local taxes, the sales. See the state sales tax after local surtaxes is 9.45 %, a state rate of 5.00 % July. The most accurate tax percentages available but tax rates state sales tax rate for most personal... Certain items can be assessed as well Tennessee or out-of-state in your city/county can view the sales tax other! Any single item sold in excess of $ 1,600 but not more than $ 3,200 ( any... Special state tax list PDF for rates in your city/county separately are not considered single articles both and... Certain items can be purchased sales-tax free the latest official city, county, and city, Oregon! Go for purchasing any good in retail as 10 % of 5.00 % effective 1... Any single item sold in excess of $ 22 services have a different tax rate where business., your sales tax purposes with the Tennessee state sales tax groups of items can! Jurisdictions like cities or counties to collect their own rate that can up... And local rates reach a whopping 9.53 % in city sales tennessee sales tax rate rate in the country alcohol.