Tennessee

Provinces
Tennessee
Provinces
Tennessee
About
Tennessee
About
Tennessee
Tennessee
Tennessee

Standard rate

The standard sales tax rate in Tennessee for 2024 is 7%.

Who is obliged to register sales tax in Tennessee

Remote sellers with no physical presence in Tennessee who met the threshold will be required to register and collect Tennessee sales and use tax.
Standard rate 7% Reduced rate - Threshold $100,00
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Threshold

Beginning October 1, 2020, the sales threshold is $100,000. Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.

Marketplace

Dealers selling via a marketplace located in Tennessee should register for a sale and use a tax account and file annual returns even if all of their sales are made via a registered marketplace facilitator. In this case, the remote seller will simply report $0 in sales on the annual return.

Registration procedure

Dealers may register online via Tennessee Taxpayer Access Point by selecting the item “Register a New Business.”

Sales tax payment and filing date

  • Monthly tax file returns should file by the 20th day of the month following the end of the reporting period;
  • Quarterly filers should file by the 20th day of the month following the end of the quarter;
  • Annual filers should file by January 20th yearly.

Penalty and interest

Penalties and interest apply to any failed payments. A penalty of 5% of the unpaid amount is added for every month that a payment is a failure, but no more than 25%. Interest is calculated at the current rate of interest.

Discount

Tennessee Sales Tax Holiday

Dates: The sales tax holiday in Tennessee is scheduled for July 26-28, 2024.

Eligible Items:

  • Clothing: Clothing and footwear priced at $100 or less per item are exempt from sales tax.
  • School supplies: School supplies priced at $100 or less per item are exempt from sales tax.
  • Computers: Computers priced at $1,500 or less each are exempt from sales tax.
During this period, shoppers in Tennessee can take advantage of these exemptions when purchasing qualifying items. This tax holiday is designed to help families save money on back-to-school items and essential technology purchases.

Tennessee Sales Tax Nexus

  • Physical Nexus: Physical presence, including property or employees, establishes Nexus.
  • Economic Nexus: Tennessee requires businesses with more than $100,000 in sales to Tennessee customers to collect and remit sales tax​​.
October 14, 2024 83
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