The state of Tennessee became an associate member of Streamlined Sales Tax on October 1, 2005.
IMPORTANT NOTE: The information on this site is general information and guidance and is not legal advice. For specific state guidance contact the state.
State Sales and Use Tax Rate: 7%
Local Jurisdiction Sales and Use Taxes: Yes
Remote Seller Thresholds:
As detailed in Important Notices 17-01 and 17-12, Tennessee did establish an economic nexus rule, Rule 129(2). However, in May 2017, the Tennessee General Assembly passed legislation providing that the Department of Revenue is prohibited from collecting sales or use taxes authorized under Rule 129(2) until the court’s ruling has been fully reviewed and Rule129(2) has been approved by the general assembly pursuant to § 4-5-226.
Additional Remote Seller Information:
If a dealer has no physical presence in Tennessee, the dealer is not required to collect Tennessee sales and use tax until the Department issues public notice stating the specific date and circumstances under which such dealers must begin to collect and remit the tax.