Tennessee Sales Tax

On this page you will find handy sales and use tax information about Tennessee.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Tennessee that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

7.000% The state has reduced rates for sales of certain types of items.

Range of Local Rates

1.5% – 2.75%  A cap on the local sales/use tax applies on sales of any item of tangible personal property.

Local Rates Apply to Use Tax

Yes

CLICK-THROUGH NEXUS

7/1/2015

AFFILIATE NEXUS

1/1/2014

REPORTING REQUIREMENTS

3/26/2012

ECONOMIC NEXUS

10/1/2019

MARKETPLACE NEXUS

10/1/2020

Annual Back to School Holiday

July 30 - August 1, 2021

1. Clothing with a sales price of $200 or less
2. School supplies with a sales price of $200 or less
3. School art supplies with a sales price of $200 or less
4. Electronic devices with a sales price of $3000 or less

Status

Active

Amnesty Filing Dates

October 1, 2005 - 12 months after becoming full member of SST

Go to Tennessee Amnesty Page
AMNESTY INCLUSION PERIODS

All periods prior to date of amnesty application.

TAX TYPES AND CONDITIONS

Business Sales and Seller’s Use Tax under SSTP Program if register under SSTP.

AMNESTY BENEFITS

Waiver of all tax, penalty and interest.

Administration Information
Streamlined Sales Tax Status

Associate Member

NUMBER OF TAXING AUTHORITIES

126 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A

Sales Tax Sourcing (Intrastate)

Origin

Sales Tax Return Due Date

The 20th of the month following the reporting period

Exemption Information
RESALE CERTIFICATE

Tennessee Resale Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: manufacturing, agricultural, resale, gasoline, textbooks, school meals, numerous health care products

 

Entity types of exemptions: purchases by government entities and non-profit organizations

 

Tennessee Exemption Certificate Forms

State Links
History & Fun Facts
HISTORY

  • Tennessee enacted its retail sales and use tax in 1947.
  • Tennessee amended its laws to become an Associate Member State with the Streamlined Sales and Use Tax Agreement in 2003, 2005, and 2007. An Associate Member State is one that has achieved substantial compliance with the terms of the SSUTA but not necessarily each provision required.

FUN FACTS
  • In 2005, Tennessee began collecting tax revenue from a so called “crack tax” on illegal substances that drug dealers can report without fear of prosecution and raked in over a million dollars. The Tennessee Court of Appeals ruled it unconstitutional in 2007.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Post-Wayfair Remote Seller Nexus: What’s Going on in the Southeast?

Like the rest of the country, the Southeast region of the U.S. is not immune to the changes created by the South Dakota v. Wayfair decision. In fact, 2020 presented a slew of changes in the southeast that have big…

Online Delivery Forum Is Not Required to Collect and Remit Tennessee Sales Tax

A Tennessee letter ruling states that an online forum that connects customers to food sellers qualifies as a delivery network company that is not required to collect sales and use tax.

Tennessee Issues Guidance on Applicability of Marketplace Nexus Legislation to Other Taxes

Tennessee has issued guidance on whether the state’s marketplace nexus legislation applies to other taxes.

Tennessee Issues Ruling on Tax Treatment of Household Appliances

The Tennessee DOR has issued a ruling discussing the application of sales and use tax to the installation of household appliances.

Tennessee Issues Guidance on Taxability of Pre-Recorded Videos of Online Courses

The Tennessee DOR has added three new FAQs to its website discussing the taxability of pre-recorded videos of online courses.

Economic Nexus State Guide

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Instructor-Led Live Online Courses Not Taxable in Tennessee

Instructor-led live online courses provided by an out-of-state vendor were not taxable in Tennessee.

Tennessee Issues Guidance on One-Time Sales Tax Holidays for 2020

Tennessee has issued guidance on one-time sales tax holidays for 2020.

Tennessee Enacts Economic Nexus Regulation

Tennessee enacted new economic nexus regulations, applicable to remote sellers who engage in regular solicitation of consumers in Tennessee through any means and make sales to Tennessee consumers exceeding a certain threshold.

Tennessee Enacts Marketplace Nexus Legislation

Effective October 1, 2020, Tennessee has enacted marketplace nexus legislation.

Tennessee Issues Guidance on Exemption for Agricultural Water

Effective July 1, 2019, Tennessee enacted a sales and use tax exemption for water purchased by a qualified farmer or nursery operator.

Delivery Method Changes Everything: Navigating Sales Tax on Intangible Goods

Explore cases where seemingly intangible goods can be converted to tangible personal property for sales tax purposes.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

Tennessee Makes Changes to Professions Subject to Professional Privilege Tax

Effective June 1, 2020, only the following professions are subject to Tennessee’s professional privilege tax: Agent (Securities) Attorney Broker-Dealer Investment Adviser Lobbyist Osteopathic Physician Physician The following professions previously subject to the professional privilege tax will be exempt beginning on…

The Southern States’ Reaction to SD v. Wayfair; A Summary

Post-Wayfair, significant sales tax legislative changes have happened on a daily basis, and the Southern states are no exception. We’ve seen a flurry of sales tax legislative activity recently regarding changes for remote sellers making sales into Southern states. If…

Tennessee Legislation Requires Out-of-State Dealers to Provide Local Sales Information, Eliminates Flat Rate Local Tax & Adds SST Sourcing Rule

Tennessee has enacted legislation that impacts information reporting, rates, and sourcing rules for remote sellers, effective October 1, 2019.

Tennessee Enacts Exemption for Materials Used to Construct Warehouse or Distribution Facilities

Tennessee has enacted an exemption on qualified building materials used in the construction, expansion, or renovation of one or more qualified, new, or expanded warehouse or distribution facilities.

Tennessee Enacts Legislation to Enforce Economic Nexus Rules

Tennessee will require out-of-state sellers that exceed $500,000 in sales into the state to collect sales and use tax, effective July 1, 2019.

Tennessee Explains Application of Sales Tax to Restaurant Gift Cards

The Tennessee Department of Revenue Issued a letter ruling to explain the how sales tax applies to a taxpayer’s purchase and distribution of gift cards.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Sales Tax Holiday Season is Here

With sales tax holiday season right around the corner, now is a good time to look at how sales tax holidays work and examine the different types of holidays that states offer.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.