Sales Tax

  • 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.  


Property 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/

More Financial Guidance From MOAA 

Premium and Life members can consult our financial staff for education and consumer advice.


Looking to get more out of your membership? MOAA has more than 400 chapters around the country. Get involved in your community by finding the one closest to you and joining today!