Who pays Local Option Sales Tax?
EVERYONE who spends money in Knoxville –
including tourists, regional visitors, and those shopping here but living elsewhere – pays Local Option Sales Tax.
Knoxville is a regional hub drawing from a number of surrounding counties for shopping, restaurants, healthcare, cultural, and entertainment events.
How much is Local Option Sales Tax in Knoxville
and our surrounding communities?
The State of Tennessee charges 7% sales tax on items purchased across the state. Additionally, local municipalities may charge what is called a
Local Option Sales Tax.