The sales tax is Tennessee’s principal source of state tax revenue accounting for approximately 60% of all tax collections. The sales tax is comprised of two parts, a state portion and a local portion. The general state tax rate is 7%. The local tax rate varies by county and/or city.
What is the sales tax in Tennessee 2021?
2021 List of Tennessee Local Sales Tax Rates. Tennessee has state sales tax of 7%, and allows local governments to collect a local option sales tax of up to 2.75%. There are a total of 234 local tax jurisdictions across the state, collecting an average local tax of 2.547%.
What is the sales tax in Tennessee 2020?
The state sales tax rate in Tennessee is 7.000%. With local taxes, the total sales tax rate is between 8.500% and 9.750%. Food in Tennesse is taxed at 5.000% (plus any local taxes).
How much is retail sales tax in TN?
Tennessee sales tax details The Tennessee (TN) state sales tax rate is 7.0%. Depending on local tax jurisdictions, the total sales tax rate can be as high as 10%.
What is Nashville TN sales tax?
The 9.25% sales tax rate in Nashville consists of 7% Tennessee state sales tax and 2.25% Davidson County sales tax. There is no applicable city tax or special tax. You can print a 9.25% sales tax table here. For tax rates in other cities, see Tennessee sales taxes by city and county.
Are groceries taxed in Tennessee?
Food, food ingredients, and prepared foods are exempt from sales tax during this time period. This includes qualified sales of prepared food by restaurants, food trucks, caterers, and grocery stores. Alcoholic beverages are not included in the exemption.
What state has the cheapest sales tax?
Residents of these states pay the least in sales taxes overall:
- Alaska 1.76%
- Oregon 0%
- Delaware 0%
- Montana 0%
- New Hampshire 0%
Does Tennessee have local sales tax?
All local jurisdictions in Tennessee have a local sales and use tax rate. The local sales tax rate and use tax rate are the same rate. Local sales and use taxes are filed and paid to the Department of Revenue in the same manner as the state sales and use taxes.
What is exempt from Tennessee sales tax?
Several examples of items that are considered to be exempt from Tennessee sales tax are medical supplies, certain groceries and food items, and items which are used in the process of packaging. These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items.
What taxes are in Tennessee?
Tennessee Tennessee has no income tax but does have a “hall tax” — that is, a 6% tax on interest and dividends, which is specifically allowed by the state constitution. Tennessee also has a 7% sales tax.
How do you calculate sales tax?
Multiply the cost of an item or service by the sales tax in order to find out the total cost. The equation looks like this: Item or service cost x sales tax (in decimal form) = total sales tax. Add the total sales tax to the Item or service cost to get your total cost.
What is the sales tax in Pigeon Forge Tennessee?
The state of Tennessee has a sales tax rate of 7%. No matter where you are for the Tennessee Tax Free Weekend, you will at least save that much! Sevier County has an additional tax rate of 2.75%. Meaning, the total sales tax in Gatlinburg, Pigeon Forge, and Sevierville equals 9.75%.
What state has the highest sales tax?
The five states with the highest average combined state and local sales tax rates are Louisiana (9.55 percent), Tennessee (9.547 percent), Arkansas (9.48 percent), Washington (9.29 percent), and Alabama (9.22 percent).