- Statewide: 7.0%
- Counties can levy an additional sales tax no more than 2.75%.
- Current average sales tax (with local taxes included): 9.546%
- Common Exceptions at State Level:
- Prescription Medicine: Exempt
- Unprepared Food: 4%
- Motor Vehicles for Qualified Military Service members: Exempt
- Gasoline Tax: 45.80 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 52.80 cents/gallon (Includes all state, local, and federal taxes)
- Cigarette Tax: 62 cents/pack of 20
- Single item purchases have a maximum amount (usually $1,600) that can be subject to local taxes. Some medical supplies and services are exempt.
Personal Income Tax
- Beginning in 2021, Tennessee has no personal income tax.
- Local municipalities average 0.71% of the property's assessed value. Calculation of assessed value: 25% of fair market value, reappraised annually.
- Relief programs for:
- 65 and over and/or Disabled: Property tax reduction on maximum taxable value of $29,000 and income less than $30,700.
- Disabled Veteran/Surviving Spouse: Property tax reduction on maximum taxable value of $175,000.
- 65 and over: Property tax freeze available subject to income limitations.
- Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: None
Department of Revenue website: https://www.tn.gov/revenue/