Credit card processing and merchant services in Memphis, TN
Memphis charges 9.75% on most sales, the same as Nashville, but its grocery rate stays at 6.75% after Davidson County's November 2026 cut. Stores in both cities need separate food tax codes.
Memphis and Nashville both charge 9.75% on most sales, but they got there years apart. The Department of Revenue's notice says Memphis raised its local rate to 2.75% after an October 3, 2019 vote, effective January 1, 2020. Add Tennessee's 7% state rate and you get 9.75%. Food and food ingredients carry the 4% state food rate plus the same local rate, or 6.75%.
The two cities part ways on November 1, 2026, when Davidson County's local rate on food and food ingredients falls to 1.75%. That change is Nashville's alone. If you run grocery or convenience stores in both cities, your Memphis food code stays at 6.75% while the Nashville one moves to 5.75%, so don't push a single tax table to every store.
Big-ticket sellers get a quirk worth knowing. Memphis's local rate and the state single article tax are both 2.75%, so under the single article rule explained on our Tennessee page, the tax on one item comes out the same as a flat 9.75% up to $3,200. Past that, only the 7% state rate applies to the extra. A $6,000 item carries $508 in tax, not $585.
The Census Bureau estimated 609,647 Memphis residents in July 2025. Tennessee has no surcharge statute we've found, but in 2021 the Attorney General warned merchants against hiding differences between card and cash prices. If you're weighing a card fee, start with your real costs: interchange-plus pricing lays them out card by card, and a free statement review shows where yours stand.
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Common questions
What is the sales tax rate in Memphis?
9.75% on most taxable sales: Tennessee's 7% plus Memphis's 2.75% local rate, in effect since January 1, 2020. Food and food ingredients carry the 4% state food rate plus the local rate, for 6.75%. In Memphis, prepared food carries the full 7% state rate and the local tax on top.
Does the Davidson County food tax cut apply in Memphis?
No. The drop to a 1.75% local rate on food and food ingredients from November 1, 2026 is a Davidson County change. Memphis groceries stay at 6.75%. If your POS pushes one tax table to stores in both cities, split it before November 1. Our Nashville page has the Davidson details.
How much sales tax is due on a $6,000 item sold in Memphis?
$508 under Tennessee's single article rule: 7% state tax on the full $6,000 ($420), 2.75% local tax on the first $1,600 ($44) and the 2.75% state single article tax on the next $1,600 ($44). A flat 9.75% would come to $585, so check that your POS splits the tax this way.
Can a Memphis store post a cash price and a higher card price?
Tennessee has no statute against it that we've found, but customers have to see the difference before they pay. The Attorney General's 2021 release warned merchants not to hide differences between credit card, debit card and cash prices. Our cash discount program guide explains how cash pricing is usually posted.
More Tennessee cities besides Memphis
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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