Tennessee Sales Tax Rate (2026)

State Base Rate

7%

Local jurisdictions may add additional sales tax.

Last updated:

Source: Tennessee Department of Revenue

How Sales Tax Works in Tennessee

Tennessee imposes a statewide base sales tax rate of 7%. Tennessee is a destination-based sales tax state, meaning the tax rate is determined by the buyer's delivery address.

County taxes: Tennessee counties can levy additional sales tax on top of the state rate, and rates vary by county.

City taxes: Cities in Tennessee may impose their own sales tax, adding further variability to combined rates.

Rates in Tennessee are typically updated quarterly. Businesses should monitor rate changes regularly to maintain compliance.

Why Rates Vary by County in Tennessee

The combined sales tax rate a customer pays in Tennessee depends on the specific jurisdiction of the transaction. Local governments use sales tax revenue to fund essential services such as infrastructure, public safety, and education.

This means that two addresses within the same city may have different tax rates if they fall in different special taxing districts. ZIP codes are particularly unreliable for tax determination because a single ZIP code can span multiple counties or tax jurisdictions.

For businesses operating in Tennessee, manually tracking these rate changes across every jurisdiction is impractical. An automated API solution ensures you always apply the correct rate at the point of sale, reducing compliance risk and audit exposure.

Example API Response

Query real-time sales tax rates programmatically. Here is an example response for Davidson County:

api-response
GETRequest
curl -H "Authorization: Bearer YOUR_API_KEY" \
  "https://salestaxapi.io/api/rates?state=TN&zip=37201"
200Response
{
  "state": "TN",
  "zip": "37201",
  "county": "Davidson County",
  "total_rate": 0.0975
}

Get real-time Tennessee sales tax rates via API

Access accurate, jurisdiction-level tax rates for every address in Tennessee. Updated daily from Tennessee Department of Revenue.

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Tennessee Sales Tax FAQ

What is the sales tax rate in Tennessee?
Tennessee has a state sales tax rate of 7%. With local taxes, combined rates can reach 9.75%, among the highest in the nation.
Does Tennessee have local sales tax?
Yes. Tennessee counties and cities levy additional sales taxes up to 2.75%.
Is Tennessee an origin or destination-based state?
Tennessee is a destination-based sales tax state.
How often does Tennessee update sales tax rates?
Tennessee local rates can change quarterly.

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