Tennessee Sales Tax: Rates, Rules, and How to Calculate It (2026)
Tennessee has one of the higher combined sales tax rates in the nation, with a state rate of 7% plus local add-ons reaching as high as 9.75%. Both groceries and clothing are taxed, making Tennessee's tax burden notable for consumers and businesses.
| Statewide base rate | 7% |
|---|---|
| Typical combined rate | 7%–9.75% |
| Are groceries taxed? | Taxable |
| Economic nexus threshold | $100,000 |
| Taxing jurisdictions tracked | 810 |
| Get the exact rate | Look up any Tennessee ZIP or address instantly |
How much is sales tax in Tennessee?
The state rate is 7%, and combined rates span 7% to 9.75%, with an average of 9.56%—one of the highest in the country. Tennessee has 810 taxing jurisdictions, and the maximum rate of 9.75% is found in Cookeville. This concentration of high rates affects pricing across the state.
Even a small address change can shift your tax rate. Jurisdictions don't align with ZIP codes, so never assume a rate. Look up the specific address to get the true combined rate.
What's taxed and what's exempt in Tennessee
Both groceries and clothing are taxable in Tennessee, so essential purchases carry the full tax burden. This is worth noting when budgeting or pricing.
SaaS is taxable, and prescription medicines are exempt. Restaurant food is also taxable. Check the category of what you're selling or buying rather than guessing.
Do you have to collect Tennessee sales tax? (Economic nexus)
If your business is based outside Tennessee, you generally have to register, collect, and file once your sales into the state pass $100,000 in gross sales during the previous or current calendar year. This is called economic nexus, and it applies even if you have no office or staff in the state.
If you sell into Tennessee from out of state, the practical question is whether you've crossed that line. Watching your sales into each state is how you know when you're on the hook — and it's the kind of thing that's easy to miss until a notice shows up.
Nexus rules change often and vary by state (reviewed 2026-01-01). This is general information, not tax advice — confirm your obligations with the Tennessee Department of Revenue or a tax professional.
How to calculate Tennessee sales tax
The math itself is simple: multiply the taxable price by the combined rate for the buyer's location. A $100 order at 9.555% means about $9.56 in tax. The hard part is getting the right rate for every address, keeping it current as rates change, and doing it fast enough to run inside a checkout.
That's what Sefro does. One API call returns the combined state, county, city, and special-district rate for any US address, sourced from state Departments of Revenue and refreshed weekly. You can also calculate the full tax on an order, validate addresses, and pull return-ready reports. See how the data is sourced or pricing to start.
Look up the Tennessee sales tax rate for any ZIP
Enter a Tennessee ZIP code to see the live combined rate from the Sefro API.
Frequently asked questions
What is the sales tax rate in Tennessee?
What is the sales tax rate in Tennessee? Tennessee's state rate is 7%, and combined rates with local taxes range from 7% to 9.75%, averaging 9.56%. Tennessee has higher-than-average sales taxes overall.
Are groceries taxed in Tennessee?
Are groceries taxed in Tennessee? Yes, groceries are fully taxable in Tennessee, unlike many states. This applies to grocery store purchases.
Do I have to collect Tennessee sales tax if I sell online?
You do once you cross the state's economic-nexus threshold — $100,000 in sales during the previous or current calendar year. Below that, an out-of-state seller generally isn't required to collect.
How do I find the exact rate for a Tennessee address?
How do I find the exact rate for a Tennessee address? Use an address lookup tool or Sefro's API to find the combined rate for any Tennessee location. ZIP codes aren't precise enough.
Is SaaS or digital software taxable in Tennessee?
Is SaaS or digital software taxable in Tennessee? Yes, SaaS and digital software purchases are subject to Tennessee sales tax.
Does Tennessee have local sales taxes on top of the state rate?
Does Tennessee have local sales taxes on top of the state rate? Yes, local taxes add on top of the 7% state rate, with some areas reaching 9.75%.
Handle Tennessee sales tax with one API call
Skip the rate tables and district lookups. Sefro returns the exact combined rate for any Tennessee address in one request — start with a free trial.
Rates and rules on this page are provided for general information only and are not tax or legal advice. Rates change; confirm the current rate and your filing obligations with the Tennessee Department of Revenue or a qualified professional. See our Terms.