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 selling into multiple states may also register with the Streamlined Sales Tax Project.
How to File and Pay
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.
Sales and use tax returns are due on or before the 20th day of the month following the reporting period. Additional information.