What is the sales tax rate in Memphis?

Memphis's combined general sales tax rate is 9.75%. That is Tennessee's 7% state rate plus the 2.75% Shelby County local option rate. Tennessee has no separate city sales tax, so the county local rate is what applies inside Memphis.

Is grocery food taxed at the same rate?

No. Tennessee taxes qualifying grocery food (for home consumption) at a reduced 4% state rate instead of 7%. The 2.75% local option rate still applies, so the combined grocery rate is about 6.75%. Prepared and restaurant food is taxed at the full general rate.

Does the local option rate apply to the whole purchase?

The 2.75% Shelby County local rate applies, but Tennessee caps the local single-article tax to the first $1,600 of any single item. This calculator applies the local rate to the full amount for simplicity, so very high-value single items may show slightly more local tax than billed.

Why is Memphis's rate among the highest in the country?

Tennessee has no state income tax and leans heavily on sales tax for revenue, with one of the nation's highest combined state-plus-local rates. Memphis sits at the 9.75% statutory maximum local rate, which is why purchases there cost more in tax than in many other states.

Does this calculator store my data?

No. All math runs entirely in your browser. Nothing you type is uploaded or saved. For an exact rate on an unusual address or item, confirm with the Tennessee Department of Revenue.

Memphis Combined Sales Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

This calculator computes Memphis sales tax using the combined 9.75% general rate. Tennessee charges a 7% state rate, and Shelby County adds a 2.75% local option rate; Memphis has no separate city sales tax, so those two components are the full bill on general goods.

How it works

The tool splits the rate into its state and local components and applies the correct state rate for the item type. Grocery food for home consumption uses Tennessee’s reduced 4% state rate; everything else uses 7%:

general state rate  = 7.00%
grocery state rate  = 4.00%
local (Shelby) rate = 2.75%
tax   = price x (state rate + local rate)
total = price + tax

For general goods this lands at 9.75% combined; for grocery food it is about 6.75% combined.

Example and notes

A $100 general purchase incurs $7.00 state tax and $2.75 local tax — $9.75 total, for a $109.75 out-the-door price. The same $100 in grocery food is taxed at 4% state plus 2.75% local, or $6.75, for a $106.75 total. Tennessee caps the local single-article tax at the first $1,600 of a single item, so very expensive single items are billed slightly less local tax than a flat-rate estimate shows.