What Is the Sales Tax in Memphis Tennessee?

Sales Tax Overview

Each state can implement its own sales taxes. Sales taxes vary depending on location. There are even city and county rates.

State Taxation Policies

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not levy a state income tax.

Sales Tax Statistics

Almost every state has a sales tax. 45 states and Washington, D.C. impose sales taxes. Rates range from 7.25% in California to 2.9% in Colorado. Only Alaska, Oregon, Montana, Delaware, and New Hampshire have no state sales tax. 38 states also allow local sales and use taxes in addition to the state rate.

Tennessee Sales Tax Details

In 2022, Tennessee had the highest sales tax rate at 9.55%. Last fiscal year, Tennessee spent 43% of state sales tax revenue on education. 56 cents of every sales tax dollar went to education. Sales tax accounts for most state and local tax revenue in Tennessee. The state collected $13.8 billion in sales tax out of $22 billion total. Local sales tax was $4.3 billion out of nearly $4.7 billion total. Tennessee’s tax and fee revenue increased from $20.9 billion in 2022 while sales tax rose from $12.8 billion collected that year.

Regressiveness of Tax Codes

After Florida, the most regressive tax codes are in Washington, Tennessee, Pennsylvania, Nevada, South Dakota, Texas, Illinois, Arkansas, and Louisiana. Heavy reliance on sales and excise taxes makes tax systems more regressive. Eight of the 10 most regressive states rely heavily on sales and excise taxes.

Sales Tax Queries

What is the sales tax on food in Memphis TN?
What is the sales tax in Shelby TN?

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