Tennessee sales tax guide Tennessee sales tax guide

Tennessee

Standard rate

The standard sales tax rate in Tennessee for 2023 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.

 

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