Sales tax is Tennessee's principal source of state tax revenue, about 60 percent of all state tax collections according to the Department of Revenue, so it is the tax you meet most often on a receipt. The Department sets a state rate, lets every county and city add a local rate, and has special rules for big single purchases. This guide uses the Department's own pages to show how those pieces fit together and what a purchase costs. It does not list each county's local rate, because the Department publishes those on a rate map and lookup tool.
The Department says the general sales tax rate for most tangible personal property and taxable services is 7 percent, and the rate on food is 4 percent. Every local jurisdiction in Tennessee has a local sales and use tax rate. A county or incorporated city may levy it by resolution or ordinance, the local rate may not be higher than 2.75 percent, and it must be a multiple of .25. The local sales tax rate and use tax rate are the same.
| Piece | Rate |
|---|---|
| State general rate | 7% |
| State rate on food | 4% |
| Local rate (set by county or city) | 0.25% steps, up to 2.75% |
| Highest general combined rate (our arithmetic: 7% + 2.75%) | 9.75% |
To find the local rate for an address, use the Department's local sales tax rate map, which it describes as a complete and up-to-date list of the rate for each jurisdiction, or its jurisdiction and rate lookup database.
Tennessee treats very expensive single items differently. The local tax is applied only to the first $1,600 of the sales price of any single article of tangible personal property in most local jurisdictions. In addition, a state single article tax of 2.75 percent applies to the part of the price between $1,600 and $3,200, and nothing is added above $3,200. The state single article tax is paid in addition to the general state sales tax.
Worked example (our arithmetic, with a local rate of 2.75 percent): a $2,000 item pays 7% state tax, $140.00; the 2.75% state single article tax on the $400 between $1,600 and $2,000, $11.00; and 2.75% local tax on the first $1,600, $44.00. The total tax is $195.00. The single article limit does not apply to custom (non-prewritten) software, software maintenance contracts, services, amusements, specified digital products, and warranty or service contracts, whose entire sales price is subject to local tax. It also does not apply to a single invoice total that has several items on it; it applies to each commonly understood single item.
A few products and services have their own state rates, according to the Department:
| Item | State rate |
|---|---|
| Food and food ingredients | 4.0% |
| Aviation fuel | 4.25% |
| Manufactured homes (half the general state rate) | 3.5% |
| Video programming services (cable TV monthly charge from $15.01 to $27.50) | 8.25% |
| Direct-to-home satellite television services | 8.25% |
The Department's table lists further special rates for manufacturers, data centers and business telecommunications that most shoppers will not meet.
Tennessee's traditional sales tax holiday on clothing, school supplies and computers ran from Friday, July 31 to Sunday, August 2 in 2026. The Department has announced the next one for Friday, July 30 to Sunday, August 1, 2027. During it, clothing and school supplies costing $100 or less per item and computers for personal use costing $1,500 or less are tax-free; restrictions apply, and the Department publishes lists of exempt and taxable items.
If you run a business that collects Tennessee sales tax, the due date depends on how often you file. Monthly filers pay by the 20th day of the month after the reporting period. Quarterly filers pay on January 20, April 20, July 20 and October 20. Annual filers pay on January 20.
This page does not list local rates by county, other exemptions, or the Department's exemption certificates. The Department's site blocks our automated tools, so these pages were read in a web browser on 9 November 2026.
All figures on this page were read from these pages on 9 November 2026.
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