What is the sales tax in Tennessee?

Current Sales Tax Rate for Tennessee in 2023

The sales tax rate in Tennessee for the year 2023 is as follows:

- State Tax Rate: The general state sales tax rate for most tangible personal property and taxable services is 7%. There is a reduced state sales tax rate on food which is 4%. [Due Dates and Tax Rates - Tennessee State Government]

- Local Tax Rates: All local jurisdictions in Tennessee have a local sales and use tax rate. The local rate may not be higher than 2.75%. [Local Sales Tax - Tennessee State Government]

- State Single Article Rates: There is a state single article rate of 2.75% on any single item sold in excess of $1,600 but not more than $3,200. [Due Dates and Tax Rates - Tennessee State Government]

- Special Tax Rates: Certain products, such as hemp-derived cannabinoids, have specific tax rates. For example, effective July 1, 2023, there is a new 6% sales tax for the privilege of selling products containing a hemp-derived cannabinoid, which applies in addition to the standard 7% state sales tax rate and the applicable local option sales tax rate. [Sales and Use Tax Notice - Tennessee State Government]

Please note that the local tax rate varies by county and/or city, and for specific transactions, there may be additional considerations for tax rates.

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Sources:

Due Dates and Tax Rates - Tennessee State Government - TN.gov 2024-08-01

Sales and Use Tax | Tennessee State Government - TN.gov 2024-08-03

Hot Topics - Tennessee State Government - TN.gov 2024-08-03

STH Traditional - Tennessee State Government - TN.gov 2024-08-04

Local Sales Tax - Tennessee State Government - TN.gov 2024-08-01

Sales Tax Rate on - Tennessee State Government - TN.gov 2024-07-31

Sales and Use Tax Notice - Tennessee State Government - TN.gov 2024-07-31

Sales and Use Tax Guide - Tennessee State Government 2024-08-02