The Sullivan County, TN sales tax rate is 9.25% on most retail purchases. That total is Tennessee’s 7% state sales tax plus a 2.25% local option tax that applies countywide, including in Kingsport, Bristol, Bluff City, and the unincorporated areas.1Justia Law. Tennessee Code 67-6-202 – Property Sold at Retail2Justia Law. Tennessee Code 67-6-702 – Tax Authorized – Rates – Termination of Services Tax Groceries are taxed at a lower combined rate, and expensive single items follow a tiered calculation that caps the local portion.
How the 9.25% Breaks Down
Tennessee charges a statewide 7% sales tax on tangible personal property sold at retail.1Justia Law. Tennessee Code 67-6-202 – Property Sold at Retail Counties and cities can add a local option tax of up to 2.75%, and that local tax only applies to the first $1,600 of any single item’s price.2Justia Law. Tennessee Code 67-6-702 – Tax Authorized – Rates – Termination of Services Tax Sullivan County’s local rate is 2.25%, so for everyday purchases the combined rate is 9.25%.
Groceries at 6.25%
Food and food ingredients for home consumption are taxed at a reduced state rate of 4% instead of 7%.3Justia Law. Tennessee Code 67-6-228 – Food Retail Sales Tax Add Sullivan County’s 2.25% local tax and you pay 6.25% at the grocery register.4Tennessee Department of Revenue. SUT-53 – Food and Food Ingredients – Definition and Tax Rate
Not everything in a grocery store qualifies. Prepared food, candy, dietary supplements, alcoholic beverages, and tobacco are taxed at the full 7% state rate, which brings them back to the standard 9.25% combined.3Justia Law. Tennessee Code 67-6-228 – Food Retail Sales Tax A rotisserie chicken from the hot deli case is prepared food. A package of raw chicken breasts is a grocery.
Big-Ticket Items and the Single Article Cap
When you buy something expensive like a vehicle, boat, or piece of equipment, the state’s 7% applies to the full price, but the local tax and a separate state surcharge are capped at set dollar thresholds.5Tennessee Department of Revenue. Single Article and Special Tax Rates
- On the first $1,600, you pay 7% state plus Sullivan County’s 2.25% local tax.
- On the portion from $1,600.01 to $3,200, you pay 7% state plus a 2.75% state single article surcharge. No local tax applies.
- On anything above $3,200, only the 7% state rate applies.
On a $5,000 piece of equipment, that works out to 9.25% on the first $1,600 ($148), 9.75% on the next $1,600 ($156), and 7% on the remaining $1,800 ($126), for $430 total instead of the $462.50 you’d owe at a flat 9.25%.6Tennessee Department of Revenue. SUT-6 – Single Article Tax – Overview and Application
Digital Products: 9.5%
Digital audio, digital video, and digital books are taxed in Tennessee whether you download them, stream them, or access them online. The state rate is the standard 7%, but the local portion on digital products is a flat 2.5% statewide rather than the county’s actual local rate.7Tennessee Department of Revenue. SUT-65 – Specified Digital Products For a Sullivan County buyer, that comes to 9.5%, slightly higher than the rate on most physical goods.
Use Tax on Out-of-State Purchases
If you buy from an out-of-state seller who doesn’t collect Tennessee sales tax, you owe use tax at the same combined rate you would have paid at home. For Sullivan County, that’s 9.25% on most tangible goods.8Tennessee Department of Revenue. Sales and Use Tax Most large online retailers collect Tennessee tax automatically now, but purchases from smaller vendors, private-party sellers in other states, or items you carry back from a trip can still trigger the obligation.
What’s Exempt
A handful of categories escape sales tax entirely. Prescription drugs are exempt under Tennessee law. Agricultural supplies such as seeds, fertilizer, pesticides, livestock feed, and farming equipment used primarily in agricultural operations are exempt for qualified farmers who hold a valid Agricultural Sales and Use Tax Certificate of Exemption.9Tennessee Department of Revenue. Agricultural Exemption Industrial machinery used in manufacturing can also qualify for exemption in many cases.
The Annual Sales Tax Holiday
Once a year, usually in late July, Tennessee holds a sales tax holiday that waives both state and local sales tax on certain back-to-school purchases. For 2026, the holiday runs July 24 through July 26. Clothing and school supplies priced at $100 or less per item qualify, as do computers, laptops, and tablets priced at $1,500 or less. Sullivan County retailers apply the exemption automatically at checkout.