Tennessee Sales Tax Rates

How to register for sales tax in Tennessee

To register for sales tax in Tennessee, you can do it online through the Tennessee Taxpayer Access Point (TNTAP):

1. Visit the TNTAP website: https://www.tn.gov/revenue.html.
2. Click the link titled “Register a New Business” on the homepage. This will take you directly to the online application.
3. You’ll need to create a TNTAP login if you don’t have one already. Follow the prompts to set up your account.

Alternatively, you can register by mail or in person:

• Mail: Download the Registration Form (RV-F1300501) and instructions from the Department of Revenue’s website and mail it to any of the listed offices.
• In Person: Visit one of the Department of Revenue offices. Trained personnel can assist you with the registration process.

How to collect sales tax in Tennessee

1. Include the Tax in Your Prices:

• The easiest way is to simply show the total price including tax to your customers. This avoids any last-minute surprises at checkout.
• You can adjust your point-of-sale system or pricing displays to reflect the total price with tax.

2. Collect the Tax at the Time of Sale:

• You’re responsible for collecting the appropriate sales tax from your customers at the time of sale.
• The collected amount represents what you’ll later remit to the Tennessee Department of Revenue.

3. Keep Good Records:

• It’s crucial to maintain accurate records of your sales and the amount of sales tax collected for each transaction.
• These records will be vital when you file your sales tax returns.

How to get a sales tax permit/license in Tennessee?

To register for sales tax in Tennessee, simply get a sales tax account through TNTAP. It’s free online, mail-in, or in person. No permit needed, but register even if you sell tax-exempt goods. You’ll get a certificate to display at your business. Easy!

When are Tennessee’s sales tax returns due?

Tennessee’s sales and use tax return due date depends on your filing frequency:

• Monthly filers: If your sales tax liability is high (usually exceeding a certain threshold set by the state), you might be required to file and pay sales tax monthly. The deadline for monthly filers is the 20th day of the following month.
• Quarterly filers: Most businesses file sales tax returns quarterly. The deadlines for quarterly filers are:
  • 1st Quarter (January – March): April 20th (following month)
  • 2nd Quarter (April – June): July 20th (following month)
  • 3rd Quarter (July – September): October 20th (following month)
  • 4th Quarter (October – December): January 20th (of the following year)

Is anyone exempt from sales tax in Tennessee?

Exempt Customers:

• Government Agencies: State and local government agencies are typically exempt from paying sales tax on purchases for official government business.
• Certain Non-Profit Organizations: Qualifying non-profit organizations may be exempt for purchases used exclusively for their charitable or educational purposes.
• Merchants Purchasing for Resale: Businesses with a valid resale certificate can purchase goods without paying sales tax upfront, as long as they intend to resell those items.

Exempt Goods:

• Groceries: Most groceries are subject to a reduced sales tax rate in Tennessee (currently 5.5%). Certain prepared foods and restaurant meals are generally taxable.
• Prescription Drugs and Medical Equipment: Prescription drugs and qualifying medical equipment are exempt from sales tax.
• Farm Equipment and Supplies: Equipment and supplies used directly in farm production are generally exempt.
• Religious Items: Bibles, hymnals, and other items used exclusively for religious worship are exempt.

Do I Have to Collect Sales Tax from Tennessee Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?

No.

Tennessee has a marketplace facilitator law, which means that marketplaces like Amazon or eBay are required to collect sales tax on behalf of 3rd party sellers on their platforms.

If you have a sales tax nexus in Tennessee, you must still collect sales tax on your other non-marketplace Tennessee sales.

Further, Tennessee specifies that in-state sellers are still required to register for a sales tax permit even if they only have an economic nexus through marketplaces.