TIP // CALC
Tennessee's statewide sales tax is 7%, and once the population-weighted local average (2.61%) is added on, the combined rate works out to about 9.61% — one of the highest combined sales tax rates in the country (ranked #2 of 47 states + D.C. by combined rate).
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Tennessee's statewide sales tax is 7%, and once the population-weighted local average (2.61%) is added on, the combined rate works out to about 9.61% — one of the highest combined sales tax rates in the country (ranked #2 of 47 states + D.C. by combined rate).
Tennessee's local sales taxes are fairly uniform across the state, so the rate above should be close to what you'll actually see on most receipts, wherever you are.
Tennessee is also one of only nine US states with no state income tax — sales tax carries more of the load here than in most states, which is part of why the rate feels a bit more visible at checkout.
Like most states, Tennessee allows employers to pay tipped workers a lower base cash wage under a federal or state "tip credit," as long as tips bring total pay up to at least the regular minimum wage — which is part of why tipping culture is taken seriously in the US service industry.
Common bill totals at typical US tipping percentages.
| Bill | 15% | 18% | 20% |
|---|---|---|---|
| $20.00 | $3.00 | $3.60 | $4.00 |
| $30.00 | $4.50 | $5.40 | $6.00 |
| $40.00 | $6.00 | $7.20 | $8.00 |
| $50.00 | $7.50 | $9.00 | $10.00 |
| $100.00 | $15.00 | $18.00 | $20.00 |
Tennessee's statewide sales tax is 7%, and once the population-weighted local average (2.61%) is added on, the combined rate works out to about 9.61% — one of the highest combined sales tax rates in the country (ranked #2 of 47 states + D.C. by combined rate).
Like most states, Tennessee allows employers to pay tipped workers a lower base cash wage under a federal or state "tip credit," as long as tips bring total pay up to at least the regular minimum wage — which is part of why tipping culture is taken seriously in the US service industry.
No — Tennessee is one of nine US states with no state income tax. That doesn't directly affect your tip, but it's part of why sales tax tends to be a bigger, more visible line item on receipts here than in states that lean more on income tax.
No. This tool calculates the tip a customer leaves on a bill. A payroll or paycheck tip calculator is a different, employer-side tool for reporting tip income and calculating wages.