Tennessee Sales
Tax Rate

Tennessee's general state sales and use tax rate is 7% in 2026 for most taxable tangible personal property and taxable services. Food and food ingredients receive a reduced 4% state rate, while local sales and use tax applies throughout Tennessee at rates that cannot exceed 2.75%.

Tennessee also has a special single-article state tax that applies to a portion of the sales price of certain individual items. Because the state, local and special-rate rules can interact, the total tax should be calculated using the product type and local jurisdiction.

Source: Tennessee Sales and Use Tax Rates

Source: Tennessee Single Article and Special Tax Rates

What Is the Tennessee Sales Tax Rate in 2026?

The general Tennessee state sales tax rate is 7% in 2026, before local tax.

Prepared food, candy, dietary supplements, alcoholic beverages and tobacco do not receive the reduced 4% food rate and generally remain subject to the 7% state rate plus local tax.

Source: Tennessee Sales and Use Tax Rates

How to Calculate Tennessee Sales Tax

To calculate Tennessee sales tax, determine the applicable state rate, add the correct local rate then apply any special single-article rule if the transaction qualifies.

Taxable Price × Applicable State and Local Rates = Sales Tax

For a $100 general taxable purchase in a jurisdiction with a 2.75% local rate, the combined general rate would be 9.75%. A qualifying grocery item in the same jurisdiction would generally use the 4% state food rate plus the local rate.

A single high-value item can require an additional step because local tax is generally limited to the first $1,600 of the price while the 2.75% state single-article tax applies to the portion above $1,600 and through $3,200.

Tennessee Local Sales Tax Rates

Every local jurisdiction in Tennessee has a local sales and use tax rate and the local rate cannot exceed 2.75%.

Local rates are imposed by counties and some incorporated cities. The local use tax rate matches the local sales tax rate.

Tennessee provides rate lookup tools and boundary data because the correct local tax can depend on the sourcing rules for the sale.

Source: Tennessee Local Sales Tax

Tennessee Sales Tax on Food in 2026

Qualifying food and food ingredients are subject to a reduced 4% Tennessee state sales tax rate in 2026, plus the applicable local tax.

Food and food ingredients generally include items consumed for taste or nutritional value. The reduced rate does not include alcoholic beverages, tobacco, candy, dietary supplements or prepared food.

A 2026 legislative change also authorizes a county with a metropolitan form of government to reduce or eliminate its local-option tax on food and food ingredients by resolution, so local treatment should be checked where that rule is relevant.

Source: Tennessee 2026 Sales and Use Tax Rates

What Is Taxable in Tennessee?

Tennessee generally taxes retail sales of tangible personal property plus services specifically listed as taxable under state law.

• Most tangible personal property
• Prepared food and restaurant meals
• Specified digital products
• Certain telecommunications and video services
• Certain repair, software and service transactions specifically taxed by law

Not every service is taxable. Businesses should determine whether the service is specifically included in Tennessee's sales and use tax base.

Common Tennessee Sales Tax Exemptions

Tennessee provides product-based and purchaser-based sales tax exemptions for qualifying transactions.

• Purchases for resale supported by a valid resale certificate
• Certain purchases by government entities and qualifying nonprofit organizations
• Qualifying agricultural purchases
• Certain manufacturing purchases
• Gasoline, textbooks, school meals and specified health-care products

When an exemption depends on a certificate, the seller should retain the certificate in its records.

Source: Tennessee Sales and Use Tax Exemptions

Source: Tennessee Resale Certificate

Tennessee Sales Tax vs. Use Tax

Tennessee use tax complements sales tax and generally applies when taxable property or services are used in Tennessee without sufficient Tennessee sales tax having been paid.

State and local use tax rates correspond to the applicable sales tax rates. A purchaser or registered business can therefore owe use tax on an out-of-state purchase when the seller did not collect the correct Tennessee amount.

Tennessee Remote Seller Economic Nexus

An out-of-state business with no Tennessee location can have sales tax nexus when it makes at least $100,000 of sales to Tennessee customers during the previous tax year.

Once nexus exists, the seller must collect and remit Tennessee sales or use tax on taxable sales into the state. Physical presence can also create nexus through employees, inventory, offices, trade-show activity and other in-state business activity.

Source: Tennessee Nexus Overview

Tennessee Sales Tax Registration and Filing

A business making taxable Tennessee sales generally registers for a sales and use tax account through TNTAP. Registered retailers are automatically issued a Tennessee resale certificate for qualifying inventory purchases.

Monthly sales tax returns are due by the 20th day of the month following the reporting period. Quarterly returns are due on the 20th day after the quarter and annual returns are due January 20.

Registered businesses must continue filing required returns even when a period has no sales to report.

Source: Tennessee Sales and Use Tax Forms

Source: Tennessee Sales and Use Tax Rates