Tennessee Sales Tax Calculator
Calculate sales tax in Tennessee. The TN state sales tax rate is 7%. Add local rates for your total sales tax. Free calculator with instant results.
Tennessee at a Glance
$310,000
Median Home Price
0.56%
Property Tax Rate
$2,200
Avg Home Insurance
$472,030
FHA Loan Limit
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Reviewed & Methodology
Every calculator is built using industry-standard formulas, validated against authoritative sources, and reviewed by a credentialed financial professional. State-specific data is sourced from official government publications.
Sales Tax Calculator in Tennessee
The median home price in Tennessee is $310,000, which is 26% below the national average of $420,000. Tennessee's effective property tax rate of 0.56% is 0.54 percentage points lower than the national average of 1.1%.
| Metric | Tennessee (TN) | National Avg | vs National Average |
|---|---|---|---|
| Median Home Price | $310,000 | $420,000 | -26% |
| Property Tax Rate | 0.56% | 1.1% | -0.54% |
| Home Insurance (Annual) | $2,200 | $2,300 | -4% |
| State Sales Tax | 7% | 5% | +2.0% |
| FHA Loan Limit | $472,030 | $472,030 | Standard |
| Conforming Loan Limit | $766,550 | $766,550 | Standard |
Homeownership in Tennessee
Tennessee has emerged as one of the fastest-growing states as businesses and residents relocate from high-tax states like California and New York. Nashville has seen dramatic housing price increases, with the metro median now around $450,000, while Memphis remains very affordable below $200,000. The statewide median around $310,000 reflects this bimodal market. Tennessee has no state income tax on wages (the Hall Income Tax on dividends and interest was fully repealed in 2021).
Tips for Tennessee Homebuyers and Homeowners
- Tennessee has no state income tax on wages -- combined with low property taxes at 0.56%, the total ownership cost is among the lowest in the Southeast, a major factor in corporate relocations.
- The 25% residential assessment ratio means only one-quarter of your home's market value is taxable -- on a $310,000 home, the assessed value is $77,500.
- Tennessee's sales tax of 7% (plus local additions up to 9.75% combined) is among the highest in the country and applies to most goods -- this offsets some of the income tax savings, particularly for families with high consumption.
- Nashville's rapid growth has created a secondary market in surrounding suburban counties -- Williamson County (Brentwood, Franklin) is one of the wealthiest counties in the Southeast; Davidson County (Nashville proper) offers more options for buyers under $400,000.
Tennessee Programs and Assistance
- Tennessee Housing Development Agency (THDA) Great Choice Home Loan -- below-market rate 30-year fixed mortgages for first-time buyers with income limits by county.
- THDA Great Choice Plus -- provides $6,000 in down payment assistance as a 0% second loan for buyers using the Great Choice Home Loan program.
- Tennessee Home Again Program -- provides additional resources for buyers in certain targeted areas, with enhanced down payment assistance amounts.
Did you know? Tennessee fully eliminated the Hall Income Tax (on dividends and interest) on January 1, 2021, making it one of the nine states with no income tax on any form of income -- this change accelerated migration from high-tax states.