What are the state and local sales tax rates in Tennessee?

Sales Tax Rates

  • State Tax

o   The sales tax rate on food and food ingredients is 5% (prior to July 1, 2017). Effective July 1, 2017, the sales tax rate on food and food ingredients is 4%. Prepared food, dietary supplements, candy, alcoholic beverages and tobacco continue to be subject to the general state sales and use tax rate of 7%, plus the applicable local tax rate. For more information about food that qualifies for this reduced rate, please see important notice 17-07

o   All other tangible personal property, unless specifically exempted, is 7%.

  • State Single Article Rates - 2.75% on any single item sold in excess of $1,600 but not more than $3,200.
  • Local Tax - Set by the local government. 
  • Use Tax – same as the sales tax rate.

For sales tax calculation reference charts and local tax charts, please visit the sales and use tax page of the Department of Revenue's website

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