Tennessee State Sales Tax: 7% Local sales tax ranges from 1% - 2.75%, most localities are 2.25% Chattanooga: 2.25% Memphis: 2.25% Nashville: 2.25% Hotel Occupancy Tax Rates vary by jurisdiction and averages 6% statewide. Local sales tax ranges from 1% - 2.75%, most localities are 2.25%. Chattanooga: 2.25% Memphis: 2.25% Nashville: 2.25%. Hotel Occupancy Tax Rates vary by jurisdiction and averages 6% statewide. Chattanooga: 8% (total tax 17.25%) Memphis: 6.70% (total tax 15.95%) Nashville: 5% (total tax 14.25).