The sales tax rate in Oak Ridge, Tennessee is 9.75%, combining a 7% state sales tax with a 2.75% local option tax. That rate applies to most goods and many services sold within city limits, but groceries are taxed lower, and the local portion is capped on big-ticket single items.
How the 9.75% Rate Breaks Down
Tennessee levies a 7% state sales tax on the retail sale of most goods, including clothing, electronics, furniture, and household supplies.1Tennessee Department of Revenue. Sales and Use Tax Oak Ridge adds a 2.75% local option tax, the maximum rate allowed under state law.2Tennessee Department of Revenue. Local Sales Tax The two layers combine to 9.75% on most taxable transactions in the city.
The same rate covers many services, including telecommunications, short-term lodging, and software subscriptions. Retailers collect the full amount at the register and remit it to the Tennessee Department of Revenue, which handles both the state and local portions.2Tennessee Department of Revenue. Local Sales Tax
Groceries Are Taxed at 6.75%
Unprepared food and food ingredients are taxed at a reduced state rate of 4% instead of 7%.3Tennessee Department of Revenue. SUT-53 – Food and Food Ingredients – Definition and Tax Rate The 2.75% local tax still applies, so qualifying groceries in Oak Ridge are taxed at 6.75%. For a family buying staples like bread, milk, produce, and canned goods week after week, that gap adds up.
Not everything in the grocery aisle qualifies. Candy, dietary supplements, tobacco, and alcoholic beverages are taxed at the full 9.75%.4Tennessee Department of Revenue. SUT-13 – Sales and Use Tax Rates – Overview Prepared food goes to the full rate too. A rotisserie chicken from the hot case or a deli sandwich made to order is taxed at 9.75%; the raw chicken you take home to cook is taxed at 6.75%. The line is whether the item is sold ready to eat.
The Cap on Expensive Single Items
Buy one expensive item in Oak Ridge and the local tax stops climbing partway up the price. The 2.75% local option tax applies only to the first $1,600 of a single article of personal property.5Justia. Tennessee Code 67-6-702 – Tax Authorized – Rates – Termination of Services Tax That caps the local portion at $44 per item.
The state then adds its own middle tier: a separate 2.75% state-only tax on the portion of the price between $1,600.01 and $3,200, worth up to another $44. Anything above $3,200 is taxed at the base 7% state rate. No local government can tax the portion above $1,600.6Justia. Tennessee Code 67-6-202 – Property Sold at Retail
On a $20,000 vehicle bought in Oak Ridge, the math works out this way:
- First $1,600 taxed at 9.75% (7% state + 2.75% local) = $156.00
- $1,600.01 to $3,200 taxed at 9.75% (7% state + 2.75% state-only) = $156.00
- $3,200.01 to $20,000 taxed at 7% state only = $1,176.00
- Total: $1,488.00, compared with $1,950.00 at a flat 9.75%
The savings matter most on vehicles, boats, and large appliances where prices run well past $3,200.
What’s Exempt
Several categories are exempt from Tennessee sales tax outright. Gasoline, textbooks, school meals, and a range of healthcare products all qualify.7Tennessee Department of Revenue. Other Exemptions Firearm safes and firearm safety devices have been permanently exempt since November 2023.8Tennessee Department of Safety and Homeland Security. Tax Exemption for Firearm Safes and Safety Devices
The Annual Sales Tax Holiday
Tennessee holds a back-to-school sales tax holiday each summer, and Oak Ridge retailers follow the statewide rules. For 2026, the holiday runs from July 24 through July 26. During that weekend, qualifying purchases are completely free of state and local sales tax:9Tennessee Department of Revenue. Annual Sales Tax Holiday
- Clothing priced at $100 or less per article
- School supplies priced at $100 or less
- Computers priced at $1,500 or less
If an item goes over the threshold, the normal rate applies to the entire price, not just the excess.
Online and Out-of-State Purchases
When you buy from a seller that doesn’t collect Tennessee sales tax, you owe a consumer use tax at the same rates: 9.75% for most goods, 6.75% for qualifying groceries.10Tennessee Department of Revenue. Consumer Use Tax Most large online retailers now collect Tennessee tax automatically, so the obligation shows up mostly with smaller vendors and private-party purchases from across state lines.
Individuals who aren’t registered for sales tax can report and pay use tax through the consumer use tax return in the Tennessee Taxpayer Access Point (TNTAP).1Tennessee Department of Revenue. Sales and Use Tax Keeping receipts for untaxed purchases makes the amount easy to calculate and keeps interest and penalties off the balance.