Tennessee sales tax at a glance
Tennessee's typical combined rate of 9.61% ranks 2nd highest among the 50 states. Tennessee pairs one of the nation's highest sales taxes with no income tax — the state leans on the register instead of the paycheck.
What sales tax adds at the register
At the average combined rate of 9.61%:
| Price | Sales tax | Total |
|---|---|---|
| $25 | $2.40 | $27.40 |
| $100 | $9.61 | $109.61 |
| $500 | $48.05 | $548.05 |
| $2,000 | $192.20 | $2,192.20 |
Tennessee vs. the national average and its neighbors
The average combined state-and-local sales tax across the 50 states is about 6.66%. Tennessee's 9.61% is 2.95 points above that — on a $30,000 car, about $885 more than the national average buyer pays. Combined with no state income tax, that shapes how Tennessee funds itself — see the Tennessee paycheck calculator for the payroll side.
Border shopping is real: here's what the same purchases cost across state lines, at each state's average combined rate.
| State | Combined rate | Tax on $250 | Tax on $30,000 |
|---|---|---|---|
| Tennessee | 9.61% | $24.03 | $2,883 |
| Virginia | 5.77% | $14.43 | $1,731 |
| Kentucky | 6% | $15.00 | $1,800 |
| Mississippi | 7.06% | $17.65 | $2,118 |
| North Carolina | 7.1% | $17.75 | $2,130 |
| Georgia | 7.56% | $18.90 | $2,268 |
| Missouri | 8.44% | $21.10 | $2,532 |
| Alabama | 9.46% | $23.65 | $2,838 |
| Arkansas | 9.48% | $23.70 | $2,844 |
Vehicle purchases are usually taxed by the state where the car is registered, not where it's bought — so the car column shows the rate you'd owe as a resident, not a border-shopping opportunity.
Reading a Tennessee receipt
A Tennessee receipt typically shows tax as a single line at the combined rate, even though the money is split between the state and one or more local jurisdictions. To check a receipt: multiply the taxable subtotal by 0.0961 (the 9.61% average) — if the tax line is meaningfully higher, you're in a locality above the average, up to 9.75%; if lower, some items were exempt (groceries and prescriptions are exempt or reduced in most states). The reverse mode on the calculator above recovers the pre-tax price from any total.
Frequently asked questions
+What is the sales tax in Tennessee in 2026?
Tennessee's state sales tax is 7%. Cities, counties and districts add local taxes averaging 2.61% (population-weighted), for a typical combined rate of 9.61% — and up to 9.75% in the highest-tax localities. Tennessee pairs one of the nation's highest sales taxes with no income tax — the state leans on the register instead of the paycheck.
+How do I calculate Tennessee sales tax backwards from a total?
Divide the total by 1 plus the rate as a decimal. At 9.61%, a $109.61 total means a $100.00 price and $9.61 tax. Choose "Total after tax (reverse)" above to do it automatically.
+Do online orders charge Tennessee sales tax?
Yes. Since the Wayfair decision, large online sellers must collect Tennessee sales tax based on your delivery address — the same state and local rate you'd pay in a store.
+How much is sales tax on a $30,000 car in Tennessee?
About $2,883 at the 9.61% average combined rate ($2,100 at the 7% state rate alone). Vehicle tax is generally assessed by your state of registration and collected when you title the car; some states cap or exempt private-party sales.
+How does Tennessee's sales tax compare nationally?
Tennessee's 9.61% average combined rate ranks 2nd highest of the 50 states, versus a national average of about 6.66%.
+Is the rate the same everywhere in Tennessee?
No. Local rates vary by city and county, from 7% (state only) up to about 9.75%. Use a recent receipt or your state revenue department's lookup for your exact address.
Rates as of July 1, 2026, from state revenue departments compiled by the Tax Foundation; local averages are population-weighted. Product exemptions (groceries, clothing, medicine) vary by state. Estimates only — see our terms.