Memphis Sales Tax Guide 2025 (Tennessee)
Navigating sales tax compliance in Memphis, Tennessee, can be challenging for businesses of all sizes. Understanding the local regulations, Tennessee sales tax rates, and legislation filing requirements is critical to staying compliant and avoiding penalties. At Kintsugi, we simplify sales tax compliance for businesses, helping you focus on growth without the headache of managing complex tax rules. In this guide, we'll break down everything you need to know about sales tax in Memphis for 2025.
Sales Tax Rate Memphis (Tennessee)
As of February 2025, the total sales tax rate in Memphis, Tennessee, is 9.75%, comprising a 7.00% state tax, a 2.25% Shelby County tax, and a 0.50% city tax. Tennessee enacted its retail sales and use tax in 1947.
| Jurisdiction | Sales tax rate |
|---|---|
| State Tax | 7.00% |
| County Tax | 2.25% |
| City Tax | 0.50% |
| Special Tax | 0.00% |
| Combined Tax | 9.75% |
(Note: Sales tax rates are subject to change. Check the Tennessee Department of Revenue’s website for the latest updates.)
Sales Tax Calculator Memphis (Tennessee)
As a business owner in Memphis, Tennessee, understanding how to correctly calculate sales tax, including the local sales tax, is crucial for compliance with Memphis sales tax law and avoiding penalties. Below is a step-by-step example to help you accurately determine the sales tax for your transactions.
Step 1: Understand the Sales Tax Rate in Memphis, TN
The total sales tax rate in Memphis, TN, is 9.75%, which consists of:
- Tennessee State Sales Tax: 7.00%
- Shelby County Sales Tax: 2.25%
- Memphis City Sales Tax: 0.5%
Step 2: Identify the Taxable Amount
Sales tax is applied to the total price of a taxable product or service.Let’s assume you own a restaurant and sell a meal for $50.
Step 3: Calculate the Sales Tax
To determine how much sales tax to collect, multiply the total sale price by 9.75% (0.0975):
50 × 0.0975 = 4.88
So, the sales tax on the meal is $4.88.
Step 4: Determine the Total Price to Charge the Customer
Now, add the sales tax to the original price:
50 + 4.88 = 54.88
The total amount the customer pays at checkout is $54.88.
Additional Tips for Business Owners
- Confirm if your products/services are taxable – some groceries and medical supplies may have reduced tax rates.
- Maintain accurate records of all sales and tax collected for audits and reporting.
- If you sell online, check if you need to collect tax for out-of-state customers.
- Submit sales tax payments on time to avoid penalties from the Tennessee Department of Revenue.
FAQ on Sales Tax in Memphis TN
What is the Sales Tax in Memphis Tennessee?
The total sales tax in Memphis, TN, is 9.75%, which includes 7% state tax, 2.25% Shelby County tax, and 0.5% city tax.
How Much is Sales Tax in Memphis TN?
Sales tax in Memphis is 9.75% on most goods and services, combining state, county, and city tax rates.
What is the Sales Tax Rate in Memphis Tennessee?
The combined sales tax rate in Memphis is 9.75%, made up of 7% state tax, 2.25% county tax, and 0.5% city tax.
Memphis Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Memphis?
Sales tax collection in Memphis is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Memphis.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in Tennessee.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Memphis?
In Memphis, Tennessee, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Machinery, Raw Materials, Medical Devices, Newspapers, Periodicals, General Occasional Sales, Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts, General Pollution Control Equipment, General Trade-Ins. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Memphis
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://www.tn.gov/revenue.html.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://www.tn.gov/revenue.html by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Memphis often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
Ready to Simplify Sales Tax Compliance in Memphis?
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
Ready to automate your sales tax?
Find Sales Tax Information for Other Cities in Tennessee
Looking for sales tax rates and compliance details for other cities in Tennessee? Check out our comprehensive table of sales tax information for cities across the state in the table below
| City | Sales tax rate |
|---|---|
| Mc Kenzie | 9.75% |
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