The sales tax rate in Hendersonville, TN is 9.75% on most retail purchases. That combines Tennessee’s 7% state sales tax1Justia. Tennessee Code 67-6-202 – Property Sold at Retail2Hendersonville, TN. Tax Structure3Justia. Tennessee Code 67-6-702 – Tax Authorized – Rates – Termination of Services Tax A $100 purchase carries $9.75 in tax; a $1,000 television carries $97.50. Retailers collect the combined amount at checkout and send it to the Tennessee Department of Revenue.
Groceries are taxed lower, prescriptions are not taxed at all, and a cap on local tax reduces the effective rate on anything over $1,600. The details are below.
The $1,600 Single Article Cap
Tennessee’s 2.75% local tax only applies to the first $1,600 of a single item’s price. From $1,600 to $3,200, the state charges its own 2.75% single article tax instead. Above $3,200, only the 7% state rate applies.4Tennessee Department of Revenue. SUT-6 – Single Article Tax – Overview and Application
On a $5,000 purchase in Hendersonville, that works out to:
- First $1,600: 7% state ($112) + 2.75% local ($44) = $156
- $1,600 to $3,200: 7% state ($112) + 2.75% state single article tax ($44) = $156
- $3,200 to $5,000: 7% state only ($126)
- Total: $438, instead of $487.50 at a flat 9.75%
The cap matters most on vehicles, boats, furniture, and major appliances. A “single article” is one standalone item; accessories bundled with it are evaluated on their own.
Groceries Are Taxed at 6.25%
Food and food ingredients bought for home preparation are taxed at 4% by the state5Justia. Tennessee Code 67-6-228 – Food Retail Sales Tax6Tennessee Department of Revenue. Local Sales Tax on Food and Food Ingredients – City of Hendersonville2Hendersonville, TN. Tax Structure
Qualifying items are the raw ingredients you’d cook with at home: produce, meat, dairy, flour, and similar staples. Several things on grocery store shelves don’t qualify and are taxed at the full 9.75%:7Tennessee Department of Revenue. SUT-53 – Food and Food Ingredients – Definition and Tax Rate
- Prepared food, including hot meals, ready-to-eat deli items, and restaurant takeout
- Candy and dietary supplements
- Alcoholic beverages and tobacco
A single receipt can show both rates when you mix groceries with household goods. That split is correct.
What’s Exempt
Prescription drugs for human use are completely exempt from Tennessee sales tax, including insulin and medical oxygen prescribed by a physician.8Justia. Tennessee Code 67-6-320 – Prescription Drugs Over-the-counter medications bought without a prescription don’t qualify and are taxed at the full 9.75%.
Other exemptions in Tennessee law cover agricultural supplies used in farming, industrial machinery used directly in manufacturing, and purchases by qualifying nonprofits. These generally require documentation at the register.
Services and Digital Items That Carry the Tax
The 9.75% rate reaches past physical goods. Cable TV, satellite service, and telecommunications are all taxable in Tennessee,9Tennessee Department of Revenue. Television and Telecommunications Tax so your cell phone bill, internet, and streaming subscriptions include it. Software downloads and digital music are taxed, and so is renting or leasing equipment, vehicles, and other tangible property.
The Annual Sales Tax Holiday
Tennessee waives both state and local sales tax for one weekend each summer, typically the last full weekend of July. The 2026 holiday runs July 24–26. During the holiday, you pay zero sales tax in Hendersonville on:
- Clothing, $100 or less per item
- School and art supplies, $100 or less per item
- Computers, laptops, and tablets, $1,500 or less per item
Anything priced above the limit stays fully taxable even during the holiday. A single clothing or supply purchase doesn’t save much, but a back-to-school trip with several items adds up quickly at 9.75%.
Online Purchases
If an online seller doesn’t collect Tennessee sales tax, you owe use tax at the same rate: 9.75% for general goods, 6.25% for groceries.10Tennessee Department of Revenue. Consumer Use Tax This comes up less than it used to. Out-of-state sellers with more than $100,000 in Tennessee sales are required to register and collect,11Tennessee Department of Revenue. SUT-4 – Nexus – Overview and major marketplaces like Amazon, eBay, and Etsy collect on behalf of their third-party sellers. Use tax still applies to purchases from small independent sellers, foreign websites, and private-party transactions where no tax was collected.