The sales tax rate in Morristown, TN is 9.75%. That figure combines Tennessee’s 7% state sales tax with Hamblen County’s 2.75% local option tax, and it applies to most retail purchases of physical goods inside the city. Groceries, digital products, and single items over $1,600 each follow different rules that can raise or lower what you actually pay at the register.
How the 9.75% Breaks Down
Tennessee charges a 7% state sales tax on retail sales of tangible personal property.1Justia. Tennessee Code 67-6-202 – Property Sold at Retail State law also lets every county and city add a local option tax of up to 2.75%,2FindLaw. Tennessee Code 67-6-702 – Local Option Sales Tax and Hamblen County, where Morristown sits, charges the full 2.75%.3Morristown TN Economic Development. Taxes The retailer collects both portions at the point of sale and sends them to the Tennessee Department of Revenue, which routes the local share back to the county.4Tennessee Department of Revenue. Sales and Use Tax
Groceries: 6.75% Instead of 9.75%
Food and food ingredients are taxed at a reduced state rate of 4% rather than the standard 7%.5Tennessee Department of Revenue. Due Dates and Tax Rates The 2.75% Hamblen County local tax still applies, so grocery purchases in Morristown ring up at a combined 6.75%. The reduced rate covers items you buy at the grocery store. Prepared food and restaurant meals are generally taxed at the full state rate, so a sit-down meal is not treated the same as a bag of groceries.
Big-Ticket Items: The $1,600 Single Article Cap
The 2.75% local tax does not apply to the full price of a pricey single item. Under Tennessee law, local sales tax is capped at the first $1,600 of any single article of personal property.2FindLaw. Tennessee Code 67-6-702 – Local Option Sales Tax Anything above $1,600 on one item is free of local tax. On a $5,000 piece of jewelry, Hamblen County collects 2.75% on $1,600 ($44), not on the whole $5,000.
The state partially fills that gap. Tennessee imposes an additional state single-article tax of 2.75% on the portion of a single item’s price between $1,600.01 and $3,200.1Justia. Tennessee Code 67-6-202 – Property Sold at Retail Above $3,200 only the base 7% state rate applies. On a $30,000 vehicle, you pay 7% on the full price, 2.75% local tax on the first $1,600, and 2.75% state single-article tax on the next $1,600 (from $1,600.01 to $3,200). Nothing extra applies to the remaining $26,800.6Tennessee Department of Revenue. Single Article Special Tax Rates
Digital Products: 9.5%
Streaming subscriptions, e-book downloads, digital music, and other specified digital products are taxable in Tennessee, but the local portion is handled differently. Instead of your county’s local rate, digital products carry a flat 2.5% local rate statewide on top of the 7% state rate, for a combined 9.5%.7Tennessee Department of Revenue. Sales Tax on Specified Digital Products The quarter-point difference from the 9.75% standard rate is small, but it is the correct rate for things like a monthly streaming bill or an e-book purchase.8Tennessee Department of Revenue. SUT-65 – Specified Digital Products
What You Don’t Pay Tax On
Some purchases are exempt from the 9.75% rate entirely, and one weekend each year wipes the tax off qualifying back-to-school items.
- Prescription drugs prescribed by a licensed healthcare provider are exempt.9Tennessee Department of Revenue. SUT-125 – Sales of Prescription Drugs
- Nonprofits with a valid Sales and Use Tax Certificate of Exemption can buy tax-free, but the certificate has to be in hand before the purchase, not produced after.10Tennessee Department of Revenue. SUT-77 – Nonprofit Exemption – Overview
- Qualified farmers with an Agricultural Sales and Use Tax Certificate of Exemption can buy certain equipment, seed, feed, and supplies without tax.11Tennessee Department of Revenue. Agricultural Exemption
- Federal and state government purchases for official use are generally exempt.
Tennessee also holds an annual sales tax holiday, typically on a weekend in late July. During the 2025 holiday (July 25–27), clothing and school supplies priced at $100 or less and computers priced at $1,500 or less were exempt from both state and local sales tax.12Tennessee Department of Revenue. Annual Sales Tax Holiday Happening July 25 – July 27 The Department of Revenue announces the specific dates in advance each year. For Morristown shoppers, the holiday effectively erases the whole 9.75% on qualifying items.
Buying Online from Morristown
Out-of-state businesses selling into Tennessee are not off the hook. Tennessee requires remote sellers to register and collect sales tax once their annual sales into the state exceed $100,000. In practice, Morristown residents buying from most online retailers will see the full 9.75% applied at checkout, the same as a local store. If an online seller does not charge Tennessee sales tax, the buyer technically owes the equivalent amount as use tax on their state return, though enforcement against individual consumers is rare.