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Local Dollars. Local Control. Local Impact


History of Local Option Sales Tax in Tennessee

Local Option Sales Tax was authorized by the Tennessee General Assembly in 1963 and became immediately popular as a source of revenue for local governments. By 2002, the tax was authorized in all 95 counties. This Local Option Sales Tax in Tennessee Report covers a variety of topics including utilization, limitations, competitiveness and the importance of the tax for Cities, Counties and the State of Tennessee.
(Tennessee Department of Revenue / Tennessee Advisory Commission on Intergovernmental Relations)

View History and Importance of Local Option Sales Tax in Tennessee




Breakdown of Local Option Sales Tax Map

Rates for counties in State

Map of the State of Tennessee showing tax rates percentages for each county and city in addition to effective dates. 
(Tennessee Department of Revenue)

View Map of City & County Tax Rates




Look Up Tool for Local Option Sales Tax in each Tennessee City and County

Search TN.gov The Tennessee sales tax jurisdiction and tax rate database is available to lookup Tennessee State and Local Option Sales Tax rates.

See the percentages for each county and individual city in Tennessee by submitting an address in the online database form.
(Tennessee Department of Revenue)

Search Tennessee Local Option Sales Tax Database



Or view Tax Rates for City, County and Special Jurisdiction below.



Single Article Tax

Detailed breakdown of the $1,600 and the full cost of an item getting taxed at 7%. 
(Tennessee Department of Revenue)

View Overview and Application Usage




State Maximum Allowed for Local Option Sales Tax

According to Tennessee Code Annotated (T.C.A.) § 67-6-702, a municipality may levy a local sales tax, but the combined rate of the county’s levy and that of the municipality may not exceed 2.75%.  
(Tennessee Department of Revenue / UT Municipal Technical Advisory Service)

View Local Option Sales Tax Maximum Rules




Public School Allocation

Tennessee Code Annotated (T.C.A.) § 67-6-712, provides details on the designation of Local Option Sales tax with schools. 
(Tennessee Department of Revenue / UT County Technical Assistance Service)

View Details of School Allocations





What is Local Option Sales Tax and who pays it?How will a ½ cent increase in sales tax impact my family?How will the City spend the money?What is the process for deciding about this increase?Frequently Asked QuestionsBack to Home Page