Watch out, Memphis! Local Sales Tax Rate Increase

January 9, 2020 | Hailey Zuvers

What’s new?

Effective January 1, 2020, the local sales tax rate for Memphis increases to 2.75%; up from 2.25%. 

On October 3, 2019, Memphis residents voted to maximize the local sales tax rate.  Thus, the combined state and local sales tax for Memphis beginning in 2020 will be 9.75%.

How does this affect me?

The new Memphis sales tax rate applies to taxable sales of tangible personal property made on or after January 1, 2020.  The new rate also applies to the sales of taxable services for billing periods starting on or after January 1, 2020.  In tandem, the local use tax for the City of Memphis also increases to 2.75%. 

This rate increase impacts the single article tax calculation.  The local sales tax applies to the first $1,600 of the sales price of any single item of tangible personal property sold in the city of Memphis, unless exempt from the tax.  Thus, the local tax cap on sales of single articles of tangible personal property will be $44.  The state single article tax rate of 2.75% applies to the sales price from $1,600.01 to $3,200.00 of any item of tangible personal property.

What if I want to learn more?

If you would like to learn more about this tax rate increase, please visit www.tn.gov/revenue.   And as always, contact your HHM Tax Advisor for additional assistance.

Top