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 29-31, 2022

1. Clothing with a sales price of $100 or less
2. School supplies with a sales price of $100 or less
4. Computers with a sales price of $1500 or less

Visit the Tennessee Department of Revenue web page for more information.

Gun Safes and Gun Safety Equipment Devices Sales Tax Holiday

July 1, 2021 - June 30, 2022

  1. Gun safes: defined as a locking container or other enclosure equipped with a padlock, key lock, combination lock, or other locking device that is designed and intended for the secure storage of one or more firearms.
  2. Gun safety device: defined as any integral device to be equipped or installed on a firearm that permits the user to program the firearm to operate only for specified persons designated by the user through computerized locking devices or other means integral to and permanently part of the firearm.

Visit the Tennessee Department of Revenue web page for more information.

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.

Economic Nexus State by State Chart

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.

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 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.

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 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.

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.

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.

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.

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.

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.

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Tennessee Enacts Click-Through Nexus Legislation

Tennessee enacted legislation that adds a sales and use tax click-through nexus provision, effective 07/01/15. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013. If passed, the bill would authorize states that meet certain requirements to require remote sellers that do not meet…