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Tennessee Tax Calculators.

Tax year 2026 income tax rates, brackets, and sales tax for Tennessee. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.
Tax Type
None
Top Rate
0%
Sales Tax
7.0%
Avg Combined
9.55%
State Tax Data Freshness
Tax year2026
Filing year2027 (generally)
EffectiveJan. 1, 2026
Last verifiedJul 29, 2026

Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.

Income Tax

No State 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 The state previously taxed interest and dividends (the Hall Tax) but fully repealed it in 2021.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.

State Rate 7%
Avg. Combined (with local): 9.55%
Open Sales Tax Calculator for Tennessee
How Tennessee Compares

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.

Frequently Asked Questions
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 The former Hall Tax on interest and dividends was fully repealed in 2021.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%.