Tennessee Sales Tax

Tennessee Sales Tax Guide (2026)

7% at state level, among the highest in the country, with a single article rule that layers three different taxes on one expensive purchase.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: TN Revenue & TCA
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Quick Facts

Sales Tax at a Glance

State base rate
7% [1]
Local rate cap
2.75% [2]
Highest combined rate
9.75% [3]
Nashville rate
9.75% [3]
Food & food ingredients
4% state [4]
Local single article cap
First $1,600 [5]
State single article tax
2.75% on $1,600–$3,200 [5]
Economic nexus
$100k, no transaction test [6]
SaaS treatment
Taxable [7]
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The single article rule stacks three taxes on one item

Buy a $4,000 dining table in Tennessee and three separate charges apply, which is why a flat combined rate never gives the right answer on large purchases.[5]

7% state on the whole price Local tax on first $1,600 only 2.75% state on $1,600 to $3,200 Nothing extra above $3,200 Per single article Accessories counted separately
The same 2.75% figure appears twice for different reasons. It is both the maximum local rate and the separate state single article rate on the middle band. They are not the same tax and should not be merged.[5]
Estimate

Tennessee sales tax calculator

Tennessee · state rate 7%
Presets assume an item under $1,600, where the single article rule does not bite.
Rate applied–
Estimated sales tax–
Total with tax–

Estimate only, and it does not apply the single article rule, which changes the answer on items over $1,600.[5] Talk to CrownGlobe for a large-purchase calculation.

Rates & Registration

Tennessee Sales Tax Rates, Nexus & the single article rule

Single article mechanics

State rate, whole price7%
Local tax applies toFirst $1,600 only
State single article tax2.75%
Applied to band$1,600.01–$3,200
Above $3,200State 7% only

A single article means one item commonly understood as a separate unit, so accessories and extra parts sold alongside it are counted separately.[5]

Who must register

Either trigger applies: economic nexus (over $100,000 of Tennessee sales in the previous 12 months, with no transaction-count test), or physical presence such as a store, inventory or in-state repair work.[6]

Digital products get their own local rate: films, music and e-books carry 7% state plus a uniform 2.5% local rate statewide, not the buyer’s actual local rate. SaaS does not get that treatment.[8]

Compliance

Sales Tax Registration and Filing

Registration through TNTAP is free.

How to register

  • Confirm nexus→
  • TNTAP registration→
  • Certificate issued→
  • Display at premises→
  • File electronically

Remote sellers may alternatively register through the Streamlined Sales Tax central registration system.[9]

Filing & due dates

FrequencyAssigned byDue
MonthlyDepartment assignment20th of next month
QuarterlyDepartment assignment20th after quarter
AnnualDepartment assignmentJan 20

Late filing costs 5% per 30 days capped at 25%, with a $15 minimum, plus interest set semiannually by the Department.[10]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

Tennessee taxes goods, many services, remotely accessed software and digital products, with a reduced rate for groceries.[1]

Generally taxable

  • Tangible retail goodsTCA 67-6-202
  • Remotely accessed software & SaaSTCA 67-6-231
  • Digital films, music & e-booksTCA 67-6-233
  • Prepared food, candy & supplementsFull 7% rate
  • Telecommunications & repair servicesTCA 67-6-205
  • Admission chargesTCA 67-6-212

Exempt or reduced rate

  • Food & food ingredientsReduced 4% state rate
  • Prescription drugsTCA 67-6-320
  • Industrial machineryTCA 67-6-206
  • Qualified farmer purchasesTCA 67-6-207
  • Sales to charitable institutionsTCA 67-6-322
  • Sales for resaleWith resale certificate
Worth flagging: the reduced 4% food rate is a state-level reduction only. Local tax still applies on top at the jurisdiction’s full rate, so Tennessee groceries are not tax free.[4]
Reference

Glossary of key terms

Single article
One item commonly understood as a separate unit, which triggers Tennessee’s cap rules.
Local single article cap
Local tax applies only to the first $1,600 of a single article’s price.
State single article tax
A separate 2.75% state tax on the slice of price from $1,600.01 to $3,200.
Remotely accessed software
Software kept by the seller but used by the customer remotely; taxable in Tennessee.
Specified digital products
Digital films, music and books, taxed with a uniform 2.5% local rate statewide.
Franchise & excise tax
Tennessee’s separate business taxes at 0.25% of net worth and 6.5% of net earnings.
FAQ

Sales Tax FAQs

7% at state level, one of the highest in the country. Local jurisdictions add up to 2.75%, so combined rates reach 9.75%, including in Nashville.

Three charges apply to one item. The 7% state tax covers the whole price, local tax applies only to the first $1,600, and a separate 2.75% state tax applies to the slice from $1,600.01 to $3,200. Nothing extra applies above $3,200.

At a reduced 4% state rate rather than 7%, but local tax still applies on top at the full local rate. Prepared food, candy, supplements and alcohol stay at 7%.

Yes. Tennessee taxes remotely accessed software at the 7% state rate plus the buyer’s normal local rate, even though the software never leaves the seller’s possession.

Over $100,000 of Tennessee sales in the previous 12 months. Tennessee uses a dollar test only, with no 200-transaction alternative.

Specified digital products such as films, music and e-books carry a uniform 2.5% local rate applied statewide, instead of the buyer’s actual local rate. SaaS is not treated this way.

Verification

Sources & methodology

  1. TN Revenue – SUT-13 Rates Overview
  2. TN Revenue – Local Sales Tax
  3. TN Revenue – Local Rates Map
  4. TN Revenue – SUT-53 Food
  5. TN Revenue – Single Article Rates
  6. TN Revenue – Out-of-State Dealers
  7. TN Revenue – SUT-58 Computer Software
  8. TN Revenue – SUT-65 Digital Products
  9. TN Revenue – SUT-10 Registering
  10. TN Revenue – GEN-16 Penalties & Interest
  11. TN Revenue – SUT-6 Single Article Application
  12. TN Revenue – SUT-9 Filing Due Dates
  13. TN Revenue – Notice 24-08 Sourcing (PDF)
  14. TN Revenue – Resale Certificate
Methodology: Every figure is checked against the Tennessee Department of Revenue or the Tennessee Code Annotated directly, never copied from a third-party guide. The Department resets its interest rate twice a year, so this page is reviewed each half year.
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