State Sales Tax

Tennessee Sales Tax Guide for eCommerce Businesses

Tennessee Sales Tax Guide for eCommerce Businesses

Sales Tax eBook

Contact Us

Tennessee's Sales Tax Authority

State Phone Information

615-253-0600

Member of the Streamlined Sales Tax Governing Board?

Yes. Associate Member.
Tennessee Streamlined Sales Tax Info

Tax percent range for remote sellers in Tennessee

7% to 10%


The information on this page is for reference only and should not be used as legal or tax advice. If you are concerned about your sales tax obligations it is advised to hire a professional.

This Page was last updated: December 2021

State's Map

Do you need to collect sales tax in Tennessee?

If you have nexus in Tennessee you will need to first register, then collect and remit sales tax. There are two main ways that sellers can have nexus: physical or economic.

Physical nexus - A seller physical/ tangible presence in the state.
Economic nexus - A remote seller (no physical presence) passes the threshold tor total revenue or number of transactions.

Does Tennessee charge sales tax on shipping?

Yes

Do you have physical nexus in Tennessee?

A seller has physical nexus in Tennessee if they have any of the following:

“Corporate Presence”
An employee, independent contractors or other representatives present in the state
Lease or rental of tangible personal property
Ownership of real or personal property

Do you have economic nexus in Tennessee?

Tennessee's Economic Nexus Sales Threshold

$100,000

Economic Transactions Threshold

N/A

Economic Nexus Evaluation Period

Previous 12 Months

Economics Nexus Effective Date

October 1, 2019

What types of sales are included in Tennessee's Economic Nexus Sales Threshold?

Retail sales are included.

Marketplace sales made by individual sellers are excluded from the threshold.

How does Tennessee treat exempt transactions when calculating economic nexus?

Exempt sales and exempt services are included in the threshold calculation; sales for resale are excluded; sales made through an online marketplace are excluded effective October 1, 2020

Does Tennessee have a Marketplace Facilitator Law?

Yes, Marketplace Facilitators are required to collect and remit sales tax on behalf of sellers on their platform.

Filling Sales Tax

When are Returns Due?

Tennessee sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.

How often are Sales Tax Returns filed?

Monthly, Quarterly, or Annually
This period is determined by the state typically by assessing your volume of sales in the state.

 Options for filing sales tax returns:

Online - File online at the Tennessee Department of Revenue
Mail - Use form SLS-450 to file by mail
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