Tennessee Sales Tax

The state sales tax rate in Tennessee (TN) is 7.0 percent. The total sales tax rate might be as high as 10% depending on local tax authorities. Other, local-level tax rates in Tennessee are relatively complex when compared to other states’ local-level tax rates. Tennessee sales taxes are imposed at the local, county, school, and transportation levels, as well as at the SPD (special purpose district) level. Amazon.com has many fulfillment sites in Tennessee that it owns and runs. Amazon and many sellers participating in Amazon’s Seller Central and Fulfillment By Amazon (FBA) programs are subject to sales tax because of this physical presence, or nexus. Due to the various levels of local and special purpose taxes, Tennessee’s sales tax is one of the most difficult to regulate and maintain. It takes a lot of effort and time to keep this state accurate. Sales and use tax applies to taxable products supplied to Tennessee customers. Sales tax is also applied to some services. Tennessee use tax applies to online and catalog transactions. Tennessee, as a Streamlined Sales Tax state, invites out-of-state merchants who are not required to collect sales tax to register with the state.

Sales Tax Rates in Tennessee by County

In Tennessee, when do you have to charge sales tax?

If your business has a sales tax nexus in Tennessee, you must charge sales tax. In different states, the term “sales tax nexus” signifies different things. It could be having a physical site (e.g., a brick and mortar business) or having someone working for you in the state. It can also refer to having a ‘affiliate’ or ‘click through’ sales tax nexus in the case of ecommerce.

Check the Tennessee government’s sales tax website to see if you should be charging sales tax in your state.

In Tennessee, which items are exempt from sales tax?

Prescription medications, for example, are free from sales tax in Tennessee. There are also Tennessee sales tax exemptions that can be used if the seller or buyer meets specific requirements.

Check the Tennessee government’s tax website for a complete list of exemptions.

What is Tennessee known for?

Tennessee is known for:

• Country music
• Whiskey
• Graceland and Elvis

Tennessee Fun Facts

• The state of Tennessee was named after a Cherokee town named “Tanasi,” which is in present-day Monroe County, Tennessee. The true meaning of Tanasi cannot be ascertained, though it’s been said to mean “meeting place,” “wind river,” or “river of the great bend.”
• Tennessee borders with eight other states. This makes Tennessee, along with Missouri, the state with the most neighboring states.
• The Grand Ole Opry in Nashville, Tennessee, is the longest continuously running live radio program in the world. It has been live since November 28, 1925.
• Vanderbilt University, along with its affiliated hospitals, is the largest employer in Tennessee.
• The Manhattan Project was based in Oak Ridge, Tennessee.
• Memphis, Tennessee, is home to Graceland, Elvis Presley’s former estate.
• Tennessee bottlers Moses and Ally Hartman developed Mountain Dew in 1940.
• Columbia, Tennessee, is the self-proclaimed Mule Capital of the World. It celebrates a city-designed Mule Day each April.
• Tennessee was the last state to secede from the Union during the Civil War and the first state to be readmitted after the war.
• Tennessee won its nickname as The Volunteer State during the War of 1812 when volunteer soldiers from Tennessee played a prominent role in the Battle of New Orleans.

Tourist Attractions in Tennessee

• Beale Street Historic District: A street in downtown Memphis, Tennessee. It was voted the most iconic street in America by USA Today.
• Bristol Motor Speedway: Auto racing venue in Bristol, Tennessee.
• Cades Cove: An isolated valley in the Tennessee side of the Great Smoky Mountains National Park.
• Clingmans Dome: The highest point in the Great Smoky Mountain National Park.
• Country Music Hall of Fame: Museum in Nashville, Tennessee.
• Dollywood: Theme park in Pigeon Forge, Tennessee.
• Graceland: Former home and estate of Elvis Presley, located in Memphis, Tennessee.
• Grand Ole Opry: Concert hall in Nashville, Tennessee.
• Great Smoky Mountains National Park: National park on the border of Tennessee and North Carolina.
• Knoxville Zoo: Zoo in Knoxville, Tennessee.
• Lookout Mountain: Mountain range near Chattanooga, Tennessee.
• Memphis Zoo: Zoo in Memphis, Tennessee.
• Nashville Zoo: Zoo in Nashville, Tennessee.
• Ober Gatlinburg: Amusement park in Gatlinburg, Tennessee.
• Opry Mills: Shopping center in Nashville, Tennessee.
• Parthenon Nashville: Building structure in Nashville, Tennessee.
• Rock City: Garden in Lookout City, Tennessee.
• Ruby Falls: Waterfall in Chattanooga, Tennessee.
• Tennessee Aquarium: Aquarium in Chattanooga, Tennessee.