Tennessee - Sales Tax Institute (2024)

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 Sales Tax Rates

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

Remote Seller Nexus Rules

Annual Back to School Holiday

July 26-28, 2024

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

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

Sales Tax Amnesty

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

State Tax Web Page

Tennessee Department of Revenue

Rate Look-Up Page

Tennessee Sales Tax Rate Look-Up

Registration Link

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.