What is the Tennessee sales tax rate?
The state rate is 7%. Every county adds a local tax, up to 2.75%, so combined rates in most places are between 9.25% and 9.75%. Tax is charged at the rate for the delivery address. Groceries are taxed at a reduced 4% state rate plus local tax. Tennessee taxes software accessed online and many digital products.
When does an online seller have to collect in Tennessee?
You must collect if you have a physical presence in Tennessee, such as staff, an office or inventory, or if your sales into Tennessee are more than $100,000 in the previous 12 months. There is no transaction-count test. Most guidance says sales made through a marketplace that collects the tax, and sales for resale, are left out of the figure, though one source counts marketplace sales. A seller who passes the threshold has until about the start of the third month afterwards to register and begin collecting.
How nexus works in general is covered in physical vs economic nexus and economic nexus explained.
What if you sell on Amazon, eBay or Etsy?
Tennessee requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.
How do you register?
Register online through the Tennessee Taxpayer Access Point for a sales and use tax account. There is no fee.
What are the steps once you have nexus?
Confirm nexus
Check your presence and your sales into Tennessee against its threshold.
Register before collecting
With the Tennessee tax agency, as set out above.
Set up your store
Charge the correct combined rate for each delivery address and product.
File and pay
On the schedule Tennessee assigns, including zero returns where required.
How are returns filed?
Returns are filed through the Tennessee Taxpayer Access Point and are due by the 20th of the month after the period. Most sellers file monthly; smaller sellers can be moved to quarterly or annual filing. One return covers state and local taxes.
See how to file a sales tax return.
How does the 12-month test work?
Tennessee does not use the calendar year. At any point, look back over the previous 12 months and total your Tennessee sales. Checking at the end of each month or quarter is enough for most sellers. Once the total passes $100,000, register and begin collecting within the lead time allowed, and keep a note of the date you passed it.
What does an example look like?
A home goods seller's Tennessee website sales for the 12 months to the end of May come to $104,000. It has passed the threshold, so it registers through the Taxpayer Access Point and begins collecting. An order delivered to Nashville is charged 9.75%, the 7% state rate plus 2.75% of local tax; an order to a county with a 2.25% local rate is charged 9.25%.
What else should sellers know?
- Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
- Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
- Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
- Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
- Store settings: switch on collection only once you are registered. See Shopify sales tax setup.
Selling into Tennessee?
We check whether you have Tennessee nexus, register you, and file your Tennessee sales tax returns.
Questions people ask
What is the Tennessee economic nexus threshold?
More than $100,000 of sales into Tennessee in the previous 12 months, with no transaction test.
What is the Tennessee sales tax rate?
7% at state level, plus local tax of up to 2.75%.
How do I register for Tennessee sales tax?
Online through the Tennessee Taxpayer Access Point; there is no fee.
Does Tennessee tax groceries?
Yes, at a reduced 4% state rate plus local tax.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- Tennessee Department of Revenue: Sales and use tax
- Supreme Court of the United States: South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018)
- Streamlined Sales Tax Governing Board: Marketplace facilitator state guidance
Rules and fees change. If you are reading this long after October 2, 2026, confirm the figures with the source before you rely on them.
Related guides
More in State sales tax
This guide is general information. It is not tax or legal advice for your situation.