The sales tax rate in Sumner County, Tennessee is 9.25% in most of the county, combining the 7% state tax with a 2.25% local tax.1Tennessee Department of Revenue. Sales and Use Tax Gallatin is the exception: its local rate rose to 2.75% effective March 1, 2025, bringing the combined rate inside the city to 9.75%.2Tennessee Department of Revenue. Important Notice: Change of Local Tax Rate: City of Gallatin What you actually pay on a given purchase depends on what you’re buying and where you’re standing when you buy it, because groceries carry a lower rate and expensive single items are capped.
How the Rate Is Built
Tennessee charges a flat 7% state sales tax on most tangible personal property and taxable services. Every county and incorporated city is then authorized to add a local sales tax of up to 2.75%.3Tennessee Department of Revenue. Local Sales Tax Sumner County’s local rate is 2.25%, which is why the combined rate across most of the county comes to 9.25%.
The merchant collects both the state and local portions at the register and remits them to the state. You don’t pay them separately, and the receipt usually shows a single tax line.
Rates by City Inside Sumner County
Incorporated cities inside Sumner County can set their own local rates, and those rates don’t always match the 2.25% that applies in the unincorporated areas. Gallatin voters approved an increase to the 2.75% statutory maximum, with the new rate taking effect March 1, 2025.2Tennessee Department of Revenue. Important Notice: Change of Local Tax Rate: City of Gallatin A purchase inside Gallatin now carries 9.75% in combined tax.
Hendersonville, Portland, Millersville, and Westmoreland each have their own local rates as well. The Tennessee Department of Revenue publishes a map that lists the current local rate for every jurisdiction in the state, which is the right place to check if you’re near a city line.4Tennessee Department of Revenue. Local Sales Tax Rates Map The rate that applies is determined by the physical location of the sale, not where you live.
Groceries Are Taxed Lower
Food and food ingredients are taxed at a reduced state rate of 4% instead of 7%.5Tennessee Department of Revenue. Due Dates and Tax Rates Local tax still applies on top of the reduced state rate, so the total on groceries in most of Sumner County is 6.25%. Inside Gallatin, groceries come to 6.75%.
The reduced rate covers unprepared food you’d buy at a grocery store. Prepared food, candy, and dietary supplements are generally taxed at the full 7% state rate. A rotisserie chicken from the deli counter and a raw chicken from the meat case sit in different tax categories, which is the kind of distinction that trips people up at checkout.
The Single Article Cap on Large Purchases
Tennessee limits how much tax piles up on expensive items like vehicles, boats, and heavy equipment. The rules work in two layers.
First, the local sales tax applies only to the first $1,600 of a single item’s price.6Justia Law. Tennessee Code 67-6-702 – Tax Authorized – Rates – Termination of Services Tax Buy a $40,000 truck in unincorporated Sumner County and the local tax is 2.25% of $1,600, or $36, not $900.
Second, a separate state single article tax of 2.75% applies to the portion of the price between $1,600 and $3,200.7Tennessee Department of Revenue. Single Article Special Tax Rates On the same $40,000 truck, that’s 2.75% of $1,600, or $44. Any amount above $3,200 carries neither the local tax nor the state single article tax.
The base 7% state tax still applies to the full price. So on that $40,000 truck, the total tax works out to $2,800 (7% state) plus $36 (local) plus $44 (state single article), or $2,880. That’s an effective rate of 7.2% rather than the 9.25% you’d pay on a smaller item. The higher the price, the closer the effective rate drops toward the 7% floor.
What’s Exempt from Sales Tax
Some purchases escape Tennessee sales tax entirely. The Department of Revenue lists several exempt categories, including gasoline (which is taxed under a separate fuel tax), textbooks, school meals, and various healthcare products.8Tennessee Department of Revenue. Other Exemptions Prescription drugs are also exempt. Qualified farmers and manufacturers can buy certain supplies tax-free or at a discounted rate, and purchases made directly by government entities and qualifying nonprofits are exempt as well.
For nonprofits, the exemption isn’t automatic. The organization has to apply for and receive a Sales and Use Tax Certificate of Exemption before making tax-free purchases, and the purchase must be paid for with the organization’s own funds. An employee who pays with a personal card and gets reimbursed later doesn’t qualify, even if the purchase was clearly for the organization.9Tennessee Department of Revenue. Application for Exempt Organizations or Institutions
Buying from Out of State
If you buy something from an out-of-state seller who doesn’t charge Tennessee sales tax, you owe the equivalent amount as use tax. The rate matches what you’d pay locally, so a Sumner County resident ordering a taxable item online from a seller that doesn’t collect Tennessee tax owes 9.25% on that purchase, or the applicable city rate.1Tennessee Department of Revenue. Sales and Use Tax
Most large online retailers now collect Tennessee sales tax automatically, so use tax mainly comes up with smaller sellers, private-party purchases from other states, or items bought while traveling. Individuals who aren’t registered as dealers can report and pay use tax through the Tennessee Taxpayer Access Point (TNTAP).1Tennessee Department of Revenue. Sales and Use Tax It’s technically owed on every taxable item that enters Tennessee without the tax having been collected, even though most people don’t think about it until an audit.