Tennessee Sales and Use Tax

The general retail sales tax rate in Tennessee is 7%.

The local tax rate varies by county and/or city. Sales tax rates in Tennessee are destination-based meaning the sales tax rate is determined from the shipping address.

Sales Tax

Generally, the Tennessee sales tax applies to the retail sale of tangible personal property and certain services such as lodging services, telecommunications services and installation and repair of tangible personal property.

The sales tax also applies to the sale of specified digital products, computer software, amusements, and warranty contracts covering tangible personal property and computer software maintenance contracts.

The local tax rate varies by county and/or city.

Use Tax

The Tennessee Use tax is the counterpart to the sales tax. All Tennessee residents and businesses must pay use tax when the sales tax was not collected by the seller on otherwise taxable products brought or shipped into Tennessee. The use tax applies to all items otherwise subject to sales tax except for services and amusements.

The use tax applies to the purchase price, which is calculated by using the same basis as sales tax (the sales price).

Remote Sellers

Finally, beginning July 31, 2019, remote sellers with more than $500,000 of sales in Tennessee must register and begin collecting sales tax by October 1, 2019. For more information see important notice 19-04 Post-Wayfair Collection by Out-of-State Dealers.

Sales and Use Tax Solutions for Your Company

Purchase an Excel / .csv formatted table for a complete list of all rates in Tennessee. Easily integrate the table into shopping carts, ERPs, call center software, and more.

For a quick rate and a sales tax calculator, use our easy Sales Tax Online Lookup Solution. Enter a ZIP code in our browser or desktop app for a full breakout of Tennessee sales tax rates by state, county, city and special district. Enter the sales amount for a quick sales tax calculation.

Special Tax Rules for Tennessee:

Shipping is taxable.
Finance charges are exempt from sales tax, when stated separately.
Clothing is taxable, except for certain exemptions.
Tennessee Sales tax holidays are held for some back to school items.

Consult the Tennessee Department of Revenue for more information.

State Map of Tennessee

Zip2Tax takes the hassle out of managing sales and use tax in Tennessee. Our solutions provide accurate, up-to-date tax rate information for businesses of all sizes, ensuring compliance with local and state regulations. Simplify your tax processes with our Sales & Use Tax Rate API for seamless system integration, or quickly access reliable tax rates with our Sales & Use Tax Online Lookup. Whether you're a small business owner or part of a larger operation, Zip2Tax has the tools to meet your needs.

The local tax rate varies by county and/or city. Sales tax rates in Tennessee are destination-based meaning the sales tax rate is determined from the shipping address. Generally, the Tennessee sales tax applies to the retail sale of tangible personal property and certain services such as lodging services, telecommunications services and installation and repair of tangible personal property. The sales tax also applies to the sale of specified digital products, computer software, amusements, and warranty contracts covering tangible personal property and computer software maintenance contracts. The local tax rate varies by county and/or city. The Tennessee Use tax is the counterpart to the sales tax. All Tennessee residents and businesses must pay use tax when the sales tax was not collected by the seller on otherwise taxable products brought or shipped into Tennessee. The use tax applies to all items otherwise subject to sales tax except for services and amusements. The use tax applies to the purchase price, which is calculated by using the same basis as sales tax (the sales price). Finally, beginning July 31, 2019, remote sellers with more than $500,000 of sales in Tennessee must register and begin collecting sales tax by October 1, 2019. For more information see important notice 19-04 Post-Wayfair Collection by Out-of-State Dealers. Purchase an Excel / .csv formatted table for a complete list of all rates in Tennessee. Easily integrate the table into shopping carts, ERPs, call center software, and more. For a quick rate and a sales tax calculator, use our easy Sales Tax Online Lookup Solution. Enter a ZIP code in our browser or desktop app for a full breakout of Tennessee sales tax rates by state, county, city and special district. Enter the sales amount for a quick sales tax calculation. The local tax rate varies by county and/or city. Sales tax rates in Tennessee are destination-based meaning the sales tax rate is determined from the shipping address. Generally, the Tennessee sales tax applies to the retail sale of tangible personal property and certain services such as lodging services, telecommunications services and installation and repair of tangible personal property. The sales tax also applies to the sale of specified digital products, computer software, amusements, and warranty contracts covering tangible personal property and computer software maintenance contracts. The local tax rate varies by county and/or city. The Tennessee Use tax is the counterpart to the sales tax. All Tennessee residents and businesses must pay use tax when the sales tax was not collected by the seller on otherwise taxable products brought or shipped into Tennessee. The use tax applies to all items otherwise subject to sales tax except for services and amusements. The use tax applies to the purchase price, which is calculated by using the same basis as sales tax (the sales price). Finally, beginning July 31, 2019, remote sellers with more than $500,000 of sales in Tennessee must register and begin collecting sales tax by October 1, 2019. For more information see important notice 19-04 Post-Wayfair Collection by Out-of-State Dealers. Purchase an Excel / .csv formatted table for a complete list of all rates in Tennessee. Easily integrate the table into shopping carts, ERPs, call center software, and more. For a quick rate and a sales tax calculator, use our easy Sales Tax Online Lookup Solution. Enter a ZIP code in our browser or desktop app for a full breakout of Tennessee sales tax rates by state, county, city and special district. Enter the sales amount for a quick sales tax calculation. The local tax rate varies by county and/or city. Sales tax rates in Tennessee are destination-based meaning the sales tax rate is determined from the shipping address. Generally, the Tennessee sales tax applies to the retail sale of tangible personal property and certain services such as lodging services, telecommunications services and installation and repair of tangible personal property. The sales tax also applies to the sale of specified digital products, computer software, amusements, and warranty contracts covering tangible personal property and computer software maintenance contracts. The local tax rate varies by county and/or city. The Tennessee Use tax is the counterpart to the sales tax. All Tennessee residents and businesses must pay use tax when the sales tax was not collected by the seller on otherwise taxable products brought or shipped into Tennessee. The use tax applies to all items otherwise subject to sales tax except for services and amusements. The use tax applies to the purchase price, which is calculated by using the same basis as sales tax (the sales price). Finally, beginning July 31, 2019, remote sellers with more than $500,000 of sales in Tennessee must register and begin collecting sales tax by October 1, 2019. For more information see important notice 19-04 Post-Wayfair Collection by Out-of-State Dealers. Purchase an Excel / .csv formatted table for a complete list of all rates in Tennessee. Easily integrate the table into shopping carts, ERPs, call center software, and more. For a quick rate and a sales tax calculator, use our easy Sales Tax Online Lookup Solution. Enter a ZIP code in our browser or desktop app for a full breakout of Tennessee sales tax rates by state, county, city and special district. Enter the sales amount for a quick sales tax calculation.