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 general Tennessee state tax rate is 7%. 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.
Special Tax Rules for Tennessee:
Follow this link to the Tennessee Department of Revenue for more information.