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

7/1/2017 – litigation pending – enforcement stayed

Annual Back to School Holiday

July 27-29, 2018

1. Clothing – $100 or less per item (excludes clothing accessories or equipment)
2. School and Art supplies -$100 or less per item
3. Computers – $1,500 or less per item (excludes computer software and any items for use in a trade or business)

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.

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.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

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.

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.

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.

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.

Separate Exemption Certificates Required for Multiple Locations in Tennessee

Manufacturers who wish to purchase electricity at a reduced rate or exempt from Tennessee sales and use tax must present a certificate of exemption for each manufacturing location.

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.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Tennessee Delays Start Date for Streamlined Sales Tax Compliance

Tennessee delayed the start date of the full implementation the Streamlined Sales and use Tax Agreement, with sales and use tax provisions set to take effect July 1, 2019.

Tennessee Authorizes Local Option Transit Surcharge

Effective April 26, 2017, Tennessee enacted legislation authorizing local governments to levy a local option transit surcharge on multiple local privilege taxes.

Tennessee Reduces Tax Rate on Food and Food Ingredients

Rent Effectively July 1, 2017, Tennessee will reduce the state sales and use tax rate on food and food ingredients, applicable local sales and use tax rates also apply to these sales.

Report Fees Paid to Third-Party Software Provider Taxable in Tennessee

A taxpayer that provides transcription services to clients is subject to Tennessee sales and use tax on report fees paid to a third-party software provider.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Access Charges for Online Solution Taxable as Remotely Accessed Software in Tennessee

Access charges for an online solution are taxable as remotely accessed software in Tennessee as of 07/01/15. More…

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Short-Term Home Rentals Made Through Rental Websites Taxable in Tennessee

Individuals using rental websites to rent their homes on a short-term basis must collect and remit Tennessee sales tax. More…