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Chattanooga, TN vs Memphis, TN: sales tax compared

Quick answer

Memphis, TN is the higher-tax metro at 9.75%, versus 9.25% in Chattanooga, TN. The 0.5% gap works out to $0.50 on a $100 purchase, $5.00 on $1,000 and $125.00 on a $25,000 purchase.

Rate gap
0.5%Percentage points, combined rate
Extra tax on $1,000
$5.00Paid in Memphis
Extra tax on $25,000
$125.00Vehicle-sized purchase

Chattanooga, TN

Hamilton County

Verified against state table

9.25%

Combined rate · ranked #14 of 94 covered metros

Sales tax rate composition for Chattanooga, TN: 7% Tennessee state, 2.25% Hamilton County, totalling 9.25%.
Jurisdiction breakdown for Chattanooga
LevelJurisdictionRate
stateTennessee state7%
countyHamilton County2.25%
Population
187,030
Median household income
$55,591

Chattanooga sits on the Georgia line, where the combined rate drops to about 8% — a meaningful gap on large purchases.

Source: Tennessee Department of Revenue · rates as published for 2026-01-01

Full Chattanooga sales tax page

Memphis, TN

Shelby County

Verified against state table

9.75%

Combined rate · ranked #8 of 94 covered metros

Sales tax rate composition for Memphis, TN: 7% Tennessee state, 2.25% Shelby County, 0.5% City of Memphis, totalling 9.75%.
Jurisdiction breakdown for Memphis
LevelJurisdictionRate
stateTennessee state7%
countyShelby County2.25%
cityCity of Memphis0.5%
Population
618,639
Median household income
$47,948

Memphis added a half-cent city increment in 2023 for public safety pay, taking it to Tennessee's statutory maximum.

Source: Tennessee Department of Revenue · rates as published for 2026-01-01

Full Memphis sales tax page

How the difference is calculated

Same arithmetic the calculator on every page runs.

Each combined rate is the sum of its listed state, county, city and special-district components — no rounding is applied before the total. The dollar gap is the rate difference (0.5%) applied to the pre-tax amount: 0.5% of $1,000 is $5.00. Neither figure includes product-specific exemptions; groceries, clothing and digital goods can be taxed at a different rate or not at all, which is covered on each state's rules page.

Questions people ask

Direct answers to the questions this comparison raises.

Which has a higher sales tax rate, Chattanooga or Memphis?

Memphis, TN at 9.75%, versus 9.25% in Chattanooga, TN.

How much more sales tax would I pay in Memphis on a $1,000 purchase?

About $5.00 more, and roughly $125.00 more on a $25,000 vehicle-sized purchase.

Why do Chattanooga and Memphis have different rates?

The state share is 7% in TN and 7% in TN. The rest comes from county, city and special-district increments stacked on top, which are set locally and listed in full on this page.

Other comparisons involving Chattanooga.