The sales tax rate in Franklin, TN is 9.75%. That’s 7% in Tennessee state sales tax plus a 2.75% Williamson County local option tax. Franklin does not add a separate city tax, so those two layers are the whole bill at the register for most purchases.1Tennessee Department of Revenue. Sales and Use Tax
Groceries, expensive single items, and the annual tax-free weekend each change that math, so it’s worth knowing where the standard rate stops applying.
How the Rate Is Built
The 7% state portion is Tennessee’s base rate on most tangible goods and taxable services.1Tennessee Department of Revenue. Sales and Use Tax Williamson County layers its 2.75% on top. Because Franklin levies no city sales tax of its own, the Franklin rate matches the rest of Williamson County.
The county’s 2.75% only applies to the first $1,600 of any single item. Beyond that threshold, the local tax stops, and a different rule takes over for the next slice of the price.2Tennessee Department of Revenue. SUT-6 – Single Article Tax – Overview and Application
Groceries Are Taxed at a Lower Rate
Unprepared food and food ingredients are taxed at a 4% state rate instead of 7%.3Tennessee Department of Revenue. Tennessee Sales and Use Tax Due Dates and Tax Rates The 2.75% county tax still applies, so a Franklin grocery receipt reflects 6.75% on qualifying food.
Not everything in a grocery store qualifies. Prepared meals, candy, and dietary supplements are generally taxed at the full 9.75% rate.4Tennessee Department of Revenue. SUT-13 – Sales and Use Tax Rates – Overview A rotisserie chicken from the deli and a bag of raw chicken breasts can leave the same store under two different rates.
Single-Item Purchases Over $1,600
For an item priced above $1,600, a second state tax of 2.75% applies to the portion of the price between $1,600 and $3,200. Nothing above $3,200 owes this additional tax.5Tennessee Department of Revenue. Single Article and Special Tax Rates
Here’s what that looks like in practice on a $5,000 purchase:
- 7% state tax on the full $5,000
- 2.75% county tax on the first $1,600
- 2.75% state single article tax on the slice from $1,600 to $3,200
- Nothing extra on the amount above $3,200
A $2,000 couch gets simpler treatment: 7% state on the whole $2,000, 2.75% county on the first $1,600, and the single article tax of 2.75% on the remaining $400.
What’s Taxable and What Isn’t
Sales tax applies to the sale, lease, or rental of most physical goods bought in Franklin, including electronics, furniture, clothing, and building materials. It also covers certain services the state specifically designates as taxable, such as telecommunications, short-term lodging, and the repair or installation of tangible property. A mechanic who bills parts and labor on one invoice collects tax on the whole thing.
Most standalone professional services are not taxable in Tennessee. Legal, accounting, medical, marketing, and engineering services fall outside the sales tax when the service itself is what’s being sold. The line can blur when a service bundles in taxable goods; an IT consultant delivering prewritten software, for example, may owe tax on the software portion even though the consulting work does not.
Electricity, water, and other utilities are generally taxable, with rates and exemptions that can differ for residential versus industrial use.
The Annual Sales Tax Holiday
Tennessee suspends state and local sales tax on certain back-to-school purchases over the last full weekend of July each year. For 2026, the holiday runs from 12:01 a.m. on Friday, July 24 through 11:59 p.m. on Sunday, July 26. Qualifying items:
- Clothing and school supplies priced at $100 or less per item
- Computers, laptops, and tablets priced at $1,500 or less per item (software is excluded)
Items bought for use in a trade or business don’t qualify, and rentals are excluded. Franklin merchants selling eligible goods are required to participate, so the discount shows up automatically at checkout during the holiday window.
Online Orders and Use Tax
Major online platforms such as Amazon, Etsy, and eBay are required to collect and remit Tennessee sales tax on behalf of their third-party sellers once the platform exceeds $100,000 in Tennessee sales during the prior 12 months.6Tennessee Department of Revenue. Out-of-State Dealers and Marketplace Facilitators This rule took effect October 1, 2020. For most Franklin shoppers, that means the 9.75% is already baked into the checkout total on big platforms.
When an out-of-state seller doesn’t collect Tennessee tax, the buyer owes a use tax at the same 9.75% rate. That obligation covers online orders from smaller vendors, catalog purchases, and items brought back from a trip to a state with a lower tax rate. Individuals who are not registered for sales tax can report and pay through the Consumer Use Tax Return in the Tennessee Taxpayer Access Point (TNTAP) system.1Tennessee Department of Revenue. Sales and Use Tax In day-to-day life, the marketplace rules have made this situation uncommon, but it still applies to private sales and purchases from small out-of-state sellers.