State guide · TN
Tennessee sales tax and property tax
High sales tax with a built-in brake on expensive items, a reduced but real grocery tax, and property tax bills among the lowest in the country.
Facts read on official Tennessee pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 7%
- Local sales taxes
- Yes, by address
- Groceries
- Reduced state rate, 4%
- Clothing
- Taxed like other goods
- Median property tax
- $1,488
- Effective property rate
- 0.45% · #46 of 51
Tennessee charges 7% state sales tax on most goods and taxable services, and counties and some cities add a local rate of up to 2.75%, so the combined rate can reach 9.75%. Two rules soften that headline. Food and food ingredients pay a reduced 4% state rate, though the full local rate still applies, and prepared food, candy and supplements pay 7%. On a single expensive item, local tax stops after the first $1,600 of the price, and a 2.75% state single article tax covers only the slice from $1,600 to $3,200. A late-July weekend removes the tax on clothing and school supplies up to $100 and computers up to $1,500. Property tax is light. The 2024 Census median was $1,488 a year for a $332,600 home, an effective 0.45% and a rank of 46 of 51, because homes are assessed at 25% of appraised value. There is no general homestead exemption; help goes to seniors, disabled owners and veterans.
Total to pay
$107.00
Sales tax $7.00 · 7% of the price
| Price before tax | $100.00 |
| State tax · 7% | $7.00 |
| Local tax · 0% | $0.00 |
| Total | $107.00 |
Rule applied: general state rate. How this is calculated.
Sales tax in Tennessee
The single article rule is what makes Tennessee different, and it matters most for appliances, furniture and electronics. The 7% state rate applies to the whole price. The local rate, at most 2.75%, applies to the first $1,600 only. Between $1,600 and $3,200, a state single article tax of 2.75% takes the local tax's place, and above $3,200 nothing extra is added. A $5,000 riding mower in a county at the 2.75% cap owes $350.00 of state tax, $44.00 of local tax and $44.00 of single article tax: $438.00, an effective 8.76% instead of the 9.75% a flat calculation would give. The single article rate is the same in every county, whatever the local rate. The calculator above applies the local rate to the whole price, so for an item over $1,600 use the breakdown here instead.
Groceries are taxed, just at a lower state rate. A $200 cart in a county at the cap owes $8.00 to the state and $5.50 locally. The definition of food is strict: a hot meal, candy, dietary supplements, alcohol and tobacco all pay 7%, and over-the-counter medicine is taxed unless bought on a prescription. Digital movies, books and music carry a fixed 0% local rate wherever the buyer lives.
The July 31 to August 2, 2026 holiday has a strict price test: an item over its limit is taxed on the whole price, with no partial exemption. A $101 jacket pays full tax that weekend.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 7% | yes | 7% state rate on most goods and taxable services; food and food ingredients are taxed at a reduced 4% state rate. Counties and some cities add a local rate of up to 2.75%, applied only to the first $1,600 of a single article; a state single article tax of 2.75% applies to the part between $1,600 and $3,200. |
| Groceries (food for home) | 4% | yes | Food and food ingredients are taxed at a reduced 4% state rate plus the full local rate. Prepared food, candy, dietary supplements, alcohol and tobacco pay the general 7% rate. |
| Clothing | 7% | yes | Clothing is taxable except during the July sales tax holiday ($100 or less per item). |
| Prescription drugs | 0% | no | |
| Single article state tax (portion of price from $1,600 to $3,200) | 2.75% | Added state tax on the part of a single item's price above $1,600 up to $3,200, replacing the local tax on that portion. | |
| Digital videos, books and music (local use tax) | 2.5% | Fixed local rate of 2.5% on these specified digital products regardless of location. |
Local sales taxes
Levied by counties and some incorporated cities (local option sales tax). Local rates cannot exceed 2.75%, and apply only to the first $1,600 of the price of a single article.
Sales tax holidays in 2026
| Holiday | Dates | What qualifies |
|---|---|---|
| Sales tax holiday | July 31, 2026 to August 2, 2026 | clothing $100 or less per item; school and school art supplies $100 or less per item; computers $1,500 or less per item |
By law the holiday runs from 12:01 a.m. on the last Friday in July to 11:59 p.m. the following Sunday; in 2026 that is July 31 to August 2 (dates computed from the rule).
Worth knowing about Tennessee sales tax
- On a big-ticket item, local tax stops at the first $1,600 of the price, and a 2.75% state single article tax applies only to the next $1,600 (up to $3,200). source
- Groceries are not exempt: they pay a 4% state rate plus the full local rate. source
- During the holiday, an item priced above $100 (or $1,500 for a computer) is taxed on its entire price: there is no partial exemption. source
- Over-the-counter drugs are taxable unless bought with a prescription. source
- Prepared food is taxed at the general 7% state rate plus local tax, not the 4% food rate. source
Property tax in Tennessee
Tennessee taxes a fixed share of value set in state law: residential and farm property is assessed at 25% of appraised value, commercial and industrial property at 40%. County assessors appraise, counties and cities each set a rate per $100 of assessed value, and the county trustee collects. On the Census median home of $332,600, the assessment is $83,150; each $1 of combined rate per $100 adds $832 to the bill. Even a $450,000 house comes to roughly $2,012 a year at the Census ratio of 0.45%.
Real property is reappraised county by county on a four, five or six-year cycle, while personal property is revalued yearly. Appeals go to the county board of equalization, which begins meeting on June 1 (May 1 in Shelby County). Bills fall due on the first Monday in October, and the last day to pay without interest is the end of February.
Tennessee offers no homestead exemption for every owner. The state Tax Relief program pays part of the bill for owners 65 or older or disabled with 2025 income of $38,470 or less, calculated on up to $33,600 of market value, and for qualifying disabled veterans on up to $175,000. The Property Tax Freeze, available only where the county or city has adopted it, locks the tax on a senior's home at its current level. Both programs are claimed through the county trustee, up to 35 days after the local delinquency date.
Property tax on a home in Tennessee
Typical bill per year
$1,487
| Per month | $124 |
| Median effective rate in Tennessee | 0.45% |
| Median bill paid | $1,488 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Tennessee |
|---|---|
| Median home value (owner-occupied) | $332,600 |
| Median real estate taxes paid | $1,488 |
| with a mortgage | $1,661 |
| without a mortgage | $1,297 |
| Effective rate (tax ÷ value) | 0.45% |
| Rank by effective rate (1 = highest) | 46 of 51 |
| Rank by median bill | 45 of 51 |
How the taxable value is set
Assessed value is a fixed share of appraised value set by state law: 25% for residential and farm property, 40% for commercial and industrial. Rates are per $100 of assessed value. Each county reappraises all real property on a 4, 5 or 6-year cycle. Who levies the tax: local (counties and cities set rates; county assessors appraise; county trustees collect)
Payment calendar: Taxes become due on the first Monday in October; the last day to pay without interest is the end of February (they are delinquent on March 1).
Other property tax relief
- Property Tax Relief (elderly and disabled). State-funded credit for owners 65+ or disabled with 2025 income of $38,470 or less; relief is calculated on up to $33,600 of market value (2026 program). source
- Property Tax Relief (disabled veterans). Qualifying disabled veterans or surviving spouses: relief calculated on up to $175,000 of market value, no income limit stated. source
- Property Tax Freeze. Local option (adopted county by county or city by city): freezes the tax on the home of owners 65+ whose income is under the county limit set yearly by the Comptroller. source
Worth knowing about Tennessee property tax
- Official example: a house appraised at $400,000 is assessed at $100,000 (25%); at a $2.50 rate per $100, the bill is $2,500. source
- Commercial and industrial property is assessed at 40% of value versus 25% for homes, so a business pays more on the same value. source
- The tax freeze was enabled by a 2006 constitutional amendment and the 2007 Property Tax Freeze Act; each county or city decides whether to adopt it. source
- County boards of equalization meet from June 1 (May 1 in Shelby County) to hear appeals of assessments. source
- Personal property is revalued every year, while real property is revalued only every 4 to 6 years. source