Tennessee Tax Calculators.
2025 income tax rates, brackets, and sales tax for Tennessee. Free calculators with Tennessee-specific defaults.Income Tax
Tennessee has no state income tax on wages, salaries, or investment income. The state previously taxed interest and dividends (the Hall Tax) but fully repealed it in 2021.
Sales Tax
Groceries are taxed at a reduced state rate of 4%. Prescription drugs are exempt.
Tennessee's lack of income tax is offset by one of the highest combined sales tax rates in the nation at 9.55%, which disproportionately affects lower-income residents.
Does Tennessee have a state income tax?
No. Tennessee has no income tax on wages, salaries, or investment income. The former Hall Tax on interest and dividends was fully repealed in 2021.
What is the sales tax in Tennessee?
Tennessee has a 7% state sales tax rate. With local taxes, the average combined rate is about 9.55%, one of the highest in the nation.
Does Tennessee tax groceries?
Tennessee taxes groceries at a reduced state rate of 4% (compared to 7% on other goods). Local taxes still apply, making the total grocery tax typically 6-7%.