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): 9.62%
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)
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
Tennessee has no personal income tax.
Property Tax
Local municipalities average 0.58% 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 $30,900 and income less than $33,460.
Disabled Veterans/Surviving Spouses: Property tax reduction on maximum taxable value of $175,000 with 100% disability rating.
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: www.tn.gov/revenue/
