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Sales Tax in Memphis

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For visitors and newcomers to Memphis, sales tax can be a bit tricky. Total sales tax is comprised of both a state tax and a county tax. Then, it can differ from one item to another. Here is how it is broken down:
  • Tennessee sales tax on merchandise: 7.0%
  • Tennessee sales tax on food (non-restaurant): 5.5%
  • Shelby County sales tax (items up to $1,600): 2.25%
  • Shelby County sales tax (items from $1,601 to $3,200): 2.75%
    So let's look at some examples:
  1. If you go to Walmart and purchase a t.v. that costs $500, you'll pay 7% in state taxes and 2.25% in county taxes for a total of 9.25% or $46.25.
  2. If you go to Kroger and purchase eggs, milk, produce, meat, and other foot items totaling $50, you'll pay 5.5% in state taxes and 2.25% in county taxes for a total of 7.75% or $3.88.
  3. Now let's say you go to Target and buy $50 in food items and $10 in non-food items. You will pay a total of 7.75% in taxes for the food and a total of 9.25% in taxes for the non-food items for a grand total of $4.80.
  4. Finally, let's say you go to Best Buy and buy a computer for $2,000. You will pay 7% in state taxes and another 2.75% in county taxes for a total of 9.75% or $195.

For a complete list of all state and local taxes, visit the Memphis Chamber of Commerce website.

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