The Tennessee (TN) state sales tax rate is currently 7.0%. Depending on local municipalities, the total tax rate can be as high as 9.75%.

Other, local-level tax rates in the state of Tennessee are quite complex compared against local-level tax rates in other states. Tennessee sales tax may also be levied at the city/county/school/transportation and SPD (special purpose district) levels.

Amazon.com owns and operates several fulfillment centers in Tennessee. This physical presence, or nexus, creates a sales tax obligation for Amazon and many sellers participating in Amazon’s Seller Central and Fulfillment By Amazon (FBA) programs.

Tennessee sales tax is one of the most challenging states to monitor and maintain due to the complex levels of local and special purpose taxes. Maintaining accuracy for this state is demanding and time consuming.

Taxable goods delivered to buyers in Tennessee are subject to sales and use tax. Some services are also subject to sales tax. Online and catalog sales are subject to Tennessee use tax. As a Streamlined Sales Tax state, Tennessee encourages out-of-state sellers without a sales tax obligation to register with the state and collect.

How to Register

Businesses must submit an application (instructions) for a business license to the Taxpayer Services Division. Applications are available online or upon request from the Taxpayer Service

Businesses selling into multiple states may also register with the Streamlined Sales Tax Project.

How to File and Pay

All sales and use tax returns and payments must be submitted electronically. All sales and use tax forms are available online, including Zero Sales Returns, which are required.

Businesses must file tax returns monthly, quarterly, or annually, depending on the amount of tax owed. Accounts filing payments in excess of $1,000 may have special filing requirements. Additional information.

Deadlines

Sales and use tax returns are due on or before the 20th day of the month following the reporting period. Additional information.

Avalara Sales and Use Tax Products for Tennessee

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.

Tennessee Department of Revenue