What is the sales tax rate in Memphis?
The combined sales tax rate in Memphis, Tennessee is between 9.25% and 9.75% as of 2026. It is made up of the Tennessee statewide base rate of 7%, plus applicable Shelby County and local district taxes. Memphis sits within Shelby County, and the rate can vary slightly across ZIP codes because of special district additions (see the ZIP breakdown below).
Sales tax in Tennessee is administered by the Tennessee Department of Revenue, which collects and distributes tax on behalf of the state and its local jurisdictions. The rate applies to most retail sales of tangible personal property delivered within Memphis.
Who needs to collect sales tax in Memphis, Tennessee?
Any business with sales tax nexus in Tennessee must register, collect, and remit sales tax on taxable sales delivered to Memphis. Nexus is established through:
- Physical presence: an office, store, warehouse, employee, or inventory located in Tennessee.
- Economic nexus: exceeding $100,000 in sales to Tennessee customers in the current or prior year.
- Marketplace facilitators: platforms such as Amazon or Etsy collect and remit on behalf of their third-party sellers.
Out-of-state (remote) sellers that cross Tennessee's economic nexus threshold must register with the Tennessee Department of Revenue before continuing to sell into the state.
How do you register for a sales tax permit in Memphis?
To collect sales tax in Memphis, you must register for a sales tax permit with the Tennessee Department of Revenue. Registration is generally free. You will typically need your EIN or SSN, business entity details, bank account information, and an estimate of your monthly Tennessee sales. Most permits are issued within a few business days of an online application.
How do you charge the right sales tax in Memphis?
Sales tax in Memphis is charged based on the delivery address. For orders shipped to a Memphis address, the combined rate of between 9.25% and 9.75% generally applies; for in-store sales, the rate is based on the store's location. Because some ZIP codes within Shelby County carry additional special-district taxes, always confirm the exact rate for the specific delivery ZIP code. The tables below show the most common Memphis ZIP codes and how Memphis compares with other cities in Shelby County and across Tennessee.
