Nashville sales tax guide
Shopping in Nashville means paying one of the lower combined sales tax rates in Tennessee: 9.25%, against a statewide average combined rate of 9.55%. Among the 30 major US cities we track, Nashville ranks 5 by combined rate. This guide shows how the rate is built and what it adds to real purchases.
How the Nashville rate is built
7.00% state + 2.25% Davidson County local tax. Groceries are taxed at a reduced 4.00% state rate plus local tax — Tennessee has no income tax on wages, funded instead by high sales taxes.
No single government sets the 9.25% figure. The state of Tennessee sets the base rate of 7%, and county, city and special-district taxes stack on top of it. That stacking is why the rate can change across a city boundary — and why the address of the sale, not the seller's home address, decides the tax on most transactions.
What the rate does to real purchases
| Purchase | Tax at 9.25% | Total |
|---|---|---|
| $25 purchase | $2.31 | $27.31 |
| $100 purchase | $9.25 | $109.25 |
| $500 purchase | $46.25 | $546.25 |
| $1,000 purchase | $92.5 | $1,092.5 |
| $10,000 purchase | $925 | $10,925 |
| $35,000 car (where vehicles are taxed at sale) | $3,237.5 | $38,237.5 |
Groceries: Groceries are taxed at a reduced 4% state rate, plus local taxes — Tennessee has among the highest average combined sales taxes in the US. Prepared food and restaurant meals are taxed at the full rate in most jurisdictions, even where groceries for home consumption are exempt or reduced.
Nashville vs other major US cities
Nashville is the Tennessee city we track in detail. Set against the extremes of the 30-city dataset (average 7.93%), its position is clear:
| City | Combined rate | Tax on $1,000 |
|---|---|---|
| Nashville (this guide) | 9.25% | $92.5 |
| Seattle — among the highest | 10.35% | $103.5 |
| Chicago — among the highest | 10.25% | $102.5 |
| Portland — among the lowest | 0% | $0 |
| Louisville — among the lowest | 6% | $60 |
What this means in Nashville
On planned purchases the rate is a line item, not a rounding error: $925 on $10,000, which is $30 less than the same purchase at the Tennessee average rate. Households near a lower-rate city boundary sometimes route vehicles, appliances and furniture purchases accordingly; on weekly spending, the difference is a few dollars a month and rarely worth a trip.
Selling in Nashville
If your business delivers into Nashville, the rate your customer pays is generally the combined rate at their address. Once your Tennessee sales pass the state's economic-nexus threshold you must register, collect and remit — the threshold and filing basics are covered on the Nashville sales tax page, and the statewide picture is in the Tennessee tax guide.
Sales tax · combined rate
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
Nashville sales tax FAQs
What is the sales tax rate in Nashville?
The combined sales tax rate in Nashville is approximately 9.25%, made up of the Tennessee state rate plus county, city and district taxes. 7.00% state + 2.25% Davidson County local tax. Groceries are taxed at a reduced 4.00% state rate plus local tax — Tennessee has no income tax on wages, funded instead by high sales taxes.
How much tax do I pay on a $100 purchase in Nashville?
At 9.25%, a $100 taxable purchase in Nashville carries about $9.25 in sales tax, for a total of $109.25. On $1,000 the tax is $92.5; on $10,000 it is $925.
Why is the Nashville rate different from the rest of Tennessee?
Sales tax is stacked: the state sets a base rate and local governments add their own. Nashville adds local layers that bring the combined rate to 9.25%, compared with a statewide average combined rate of about 9.55% — a gap of 0.3 points.
How does Nashville compare with other US cities?
Nashville ranks 5 of the 30 major cities in our dataset by combined rate (dataset average 7.93%). The highest is Seattle at 10.35% and the lowest is Portland at 0%. Against the all-state average combined rate of 6.61%, Nashville is 2.64 points higher.
Are groceries taxed in Nashville?
Groceries are taxed at a reduced 4% state rate, plus local taxes — Tennessee has among the highest average combined sales taxes in the US.
Where can I verify the exact rate for a Nashville address?
The 9.25% figure is the typical combined rate inside city limits; district taxes can shift it block by block. Verify the rate for a specific address with the Tennessee Department of Revenue before a major purchase or a filing.
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the Tennessee Department of Revenue.