Tennessee use tax. The local tax rate varies by county and/or city.
Tennessee use tax The local tax rate varies by county and/or city. The local option portion is imposed by city and/or county governments and was first enacted under the 1963 Local Option Revenue Act. gov Jan 1, 2023 · Application for Registration Agricultural Sales and Use Tax Certificate of Exemption - "for use after January 1, 2023" Application for Pollution Control Sales and Use Tax Exemption Application for Exemption from Sales Tax for Interstate Telecommunications in the Operation of a Call Center Application for Industrial Machinery Exemption The Department of Revenue is responsible for the administration of state tax laws established by the legislature and the collection of taxes and fees associated with those laws. remote sellers) register with the Tennessee Department of Revenue and collect and remit sales and use tax if the business has a total sales revenue in the state of more than $100,000 in the preceding twelve calendar months. Oct 28, 2025 · For accurate calculations, use a tennessee sales tax calculator or lookup tool that considers your specific location. Please note that this manual is not all encompassing. g. The TN Exemption Form, formally known as the Tennessee Sales or Use Tax Government Certificate of Exemption, is a document designed for government entities. Sales and Use Tax Overview The sales tax is Tennessee’s principal source of state tax revenue accounting for approximately 60% of all tax collections. Tennessee sales tax serves as the primary source of state tax revenue and makes up approximately 60% of all tax collections. Overview Tennessee imposes a sales tax on the privilege of engaging in the business of selling tangible personal property and providing certain services. The resale certificate allows retailers to obtain inventory they plan to resell without paying sales or use tax by providing a copy to their suppliers. Under Tenn. , online purchases) the Federal or Tennessee government entities and their agencies must include the government agency’s FEIN for the tax ID number required on the exemption form. The TWTA makes several changes to Tennessee sales and use tax laws by adopting a majority of the sourcing provisions consistent with the Streamlined Sales and Use Tax Agreement. For specific state Streamlined Sales Tax The Streamlined Sales and Use Tax Project is a national effort by states to simplify and modernize the administration of state and local sales and use tax laws. Note: A TNTAP logon is not required to file the consumer use tax. The Tennessee General Assembly enacted the Tennessee Retailers’ Sales Tax Act (the “Act”) in 1947. It details the process for reporting gross sales, taxable and exempt transactions, and calculating due taxes for both state and local authorities. Purchases made from outside the state include, but are not limited to, mail-order catalog Mar 27, 2025 · The use tax is the counterpart to sales tax. The business may use the certificate to purchase property or services, that it intends to sell, without paying sales & use tax The 450 Tennessee form, officially known as the State and Local Sales and Use Tax Return, is a crucial document for businesses operating within Tennessee. Mar 27, 2025 · When a seller uses the Streamlined Sales Tax Certificate of Exemption in paper form or the data elements of the certificate in electronic form (e. Yes. Jul 1, 2024 · Overview Use Tax is the counterpart to the sales tax. The sales tax is comprised of two parts, a state portion and a local portion. Sales and use tax returns must be filed for every required period regardless of whether there are sales to report. Feb 25, 2021 · The use tax is charged at the same rate as sales tax in Tennessee. Numerous reforms and changes to Tennessee law have been adopted by the General Assembly but not yet implemented. The nursery operator or sod farm, when completing the periodic Tennessee sales or use tax returns, will report sod sales as gross sales on Line 1 of the sales or use tax return and exempt the transactions by also reporting them on Schedule A, Line 6. . Tennessee also imposes a complementary use tax that applies when a taxable product is used, consumed, distributed, or stored in this state and the seller did not collect sales tax on the product at the time of sale. Overview On May 11, 2023, Governor Lee signed into law the Tennessee Works Tax Act (“TWTA”), Public Chapter 377 (2023). Within each tax type, you will find the definition of the tax, tax rates and due dates for returns. Consumer Use Tax CUT-1 - How to Pay Consumer Use Tax CUT-2 - When to File Consumer Use Tax CUT-3 - Consumer Use Tax Rate Streamlined Sales Tax Certificate of Exemption Do not send this form to the Streamlined Sales Tax Governing Board. Download or print the 2024 Tennessee Sales and Use Tax Guide (Sales and Use Tax Guide) for FREE from the Tennessee Department of Revenue. Registration, Filing and Payment Using TNTAP All sales and use tax returns and associated payments must be submitted electronically. How to use this page: We’ve pulled in the information from all our Charts for a consolidated view by state. Information about those taxes is available as Sales and Use Tax Exemption Verification Application: Vendors are often confronted with customers who wish to make purchases tax free, either because they intend to resell the item or because they are making a purchase for a non-profit organization, an individual, or a business possessing a valid Tennessee certificate of exemption. Sales and use tax have two parts: a state portion and a local option portion. Tennessee Department of Revenue Taxes Taxes The Department of Revenue is responsible for the administration of state tax laws established by the legislature and the collection of taxes and fees associated with those laws. Send the completed form to the seller and keep a copy for your records. Tax-specific, general purpose, title and registration, motor carrier, secretary of state, approved software vendors for computer -generated. The formula is based on a combination of the state tax rate of 7% (4. The range of total sales tax rates within the state of Tennessee is between 8. gov Tennessee State Government - TN. Tennessee does not recognize the use of exemption certificates issued by other states, except for resale certificates for purposes of making tax-exempt purchases in Tennessee for resale outside of Tennessee to end users located outside of Aug 7, 2025 · This tax applies when tangible personal property is purchased without sales tax being paid, but is then used, consumed, distributed, or stored for use or consumption in Tennessee. Sales and use taxes are transactional taxes applied to the sale or use of tangible personal property or specific services in Tennessee. Forms relevant to conducting business with the Department of Revenue. Television and telecommunications service providers must file the television and telecommunications sales and use tax return instead of the sales and use tax return filed by other taxpayers Tennessee The state of Tennessee became an associate member of Streamlined Sales Tax on October 1, 2005. Local jurisdictions impose additional sales taxes ranging between 1% and 2. All TN residents, as well as businesses operating in the state, must pay use tax when goods are purchased from outside the state of TN and brought or shipped into the state and the seller did not collect sales tax on the purchase. If your customer originally paid you sales or use tax then submitted an exemption certificate requesting a credit or refund of the tax, you must send, with your claim, proof of repayment of the tax to the customer, such as a copy of the canceled check or a credit memo. 5% and 9. The taxpayer must pay Tennessee sales or use tax on any tangible personal property that it uses in its [RETAIL BUSINESSES] whether inside of or outside of Tennessee, if either title to or possession of the tangible personal property passed in Tennessee and such tangible personal property was purchased on a resale certificate. Sales and use tax, television and telecommunications sales tax, and consumer use tax can be filed and paid on the Tennessee Taxpayer Access Point (TNTAP). Read information about e-file and pay. Tax laws, their interpretation, and their Sales and Use Tax Overview The sales tax is Tennessee’s principal source of state tax revenue accounting for approximately 60% of all tax collections. Items that are exempt from sales and use tax when sold to people who have an Agricultural Sales and Use Tax Certificate of Exemption - "for use after January 1, 2023" include: Tangible personal property used primarily (more than 50%) by a qualified farmer or nursery operator in agriculture operations For more information on what agricultural items qualify for exemption, please see the When retailers register for a Tennessee sales and use tax account, they are automatically issued a Tennessee Sales and Use Tax Certificate of Resale (“resale certificate”). It is applied when merchandise (tangible personal property) is purchased from outside of Tennessee and imported into this state for use or consumption. SUT-13 - Sales and Use Tax Rates – Overview SUT-14 - Sales and Use Tax Rates – Manufacturers SUT-15 - Uniform Local Sales Tax Rate SUT-16 - Local Tax Collection by Out-of-State Dealers SUT-17 - Local Privilege Taxes are not Included in the Sales Price When Calculating Sales Tax SUT-18 Sales Tax and Business Tax Filing for Single Member LLCs Overview Use Tax is the counterpart to the sales tax. 1 The Act also imposed a complementary use tax that applies when a taxable product is used, consumed, distributed, or stored in this state and the seller did not collect sales tax E-filing Information E-file & Pay The Tennessee Taxpayer Access Point (TNTAP) application allows you to create and manage your account, file and pay your taxes online, pay a tax bill, register a new business and more. Local Sales Tax Reporting by Out-of-State Dealers 22 This sales and use tax guide is intended as an informal reference for taxpayers who wish to gain a better understanding of Tennessee sales and use tax requirements. Tennessee has been an associate member state of the Streamlined Sales Tax Governing Board (SSTGB) since October 1, 2005. Adopting these sourcing rules clarifies for sellers which state’s tax is due on a sale into Tennessee sales tax serves as the primary source of state tax revenue and makes up approximately 60% of all tax collections. The use tax rate is the same as the state sales tax rate. The sales and use tax in Tennessee is in the process of undergoing changes as a part of a national effort to streamline sales tax collections. k. 0% on food or food ingredients) plus the local tax rate levied by your local government. Download or print the 2024 Tennessee Form SLS450 (Instructions) (Sales and Use Tax Return (Instructions)) for FREE from the Tennessee Department of Revenue. Mar 26, 2012 · Tennessee Sales Tax On this page you will find handy sales and use tax information about Tennessee. The articles below constitute “published guidance,” as defined in Tenn. This manual provides information on sales and use tax, business tax, franchise and excise tax, and other miscellaneous taxes. See full list on tax-rates. Section 67-6-102(24)(B), packaged or customized software is considered tangible personal property which is subject to the sales and use tax. This certificate assures that Contractors may not use an exempt organization’s authorization for exemption to make tax-exempt purchases to fulfill contracts with a tax-exempt organization. The information in this guide is current as of the date of publication. In Tennessee, the State Use Tax is a tax assessed on tangible personal property that is purchased outside of the state but brought into Tennessee for use, storage, or consumption. It is not an all-inclusive document or a substitute for Tennessee sales or use tax statutes or rules and regulations. Sales and Use Tax Certificate Verification Application Vendors are often confronted with customers who wish to make purchases tax free, either because they intend to resell the item or because the customers are making a purchase for a non-profit organization, an individual, or a business possessing a valid Tennessee certificate of exemption. The Tennessee Sales Tax Handbook provides everything you need to understand the Tennessee Sales Tax as a consumer or business owner, including sales tax rates, sales tax exemptions, and more. 75%. Sales tax generally applies to the retail sales of any business, organization, or person engaged in making retail sales, including selling, leasing, or renting tangible personal property and selling certain taxable services, amusements, software, and digital The new law clarifies when the sale of, use of, or subscription to warranty or service contracts covering the repair or maintenance of tangible personal property in Tennessee are subject to the sales or use tax. All Tennessee residents, as well as businesses operating in the state, must pay use tax when goods are purchased from outside the state of Tennessee and brought or shipped into the state and the seller did not collect sales tax on the purchase. INSTRUCTIONS: Tennessee Sales and Use Tax Return These instructions apply to Tennessee’s sales and use tax return for periods beginning on or after July 1, 2021. It allows these bodies, including the State of Tennessee, its counties, municipalities, the Federal Government, or any of their agencies, to make tax-exempt purchases of tangible personal property or services. Tax laws, their interpretation, and their Tennessee sales tax serves as the primary source of state tax revenue and makes up approximately 60% of all tax collections. INSTRUCTIONS: Tennessee Sales and Use Tax Return These instructions apply to Tennessee’s sales and use tax return for periods beginning on or after February 1, 2025. To apply for entity exemptions available in Tennessee, go to the Sales and Use Tax Forms on the left. The general state tax rate is 7%. The undersigned hereby certifies that the purchases of tangible personal property or services being made on this certificate of exemption are being made by the State of Tennessee, or a county or municipality within the State of Tennessee, or the Federal Government, or an agency thereof and are for the use of the government or agency. Nexus with TN Taxes Nexus is the requisite contact between a taxpayer and a state before the state has jurisdiction to tax the taxpayer. Many businesses find it helpful to reference rates by county or use online tools that provide real-time rate information. Here you can see the sales tax rates and if the state has remote seller nexus rules. It provides that sales or use tax is due under each of the following circumstances: This sales and use tax guide is intended as an informal reference for taxpayers who wish to gain a better understanding of Tennessee sales and use tax requirements. The Act imposed a sales tax on the privilege of engaging in the business of selling tangible personal property. Membership Petition Annual Recertification Letter Certificate of Compliance Taxability Matrix Library of Definitions Taxability Matrix Tax Administration Practices IMPORTANT NOTE: The information on this site is general information and guidance and is not legal advice. Tennessee law defines “sales price” to include the total amount for which a taxable service or This sales and use tax guide is intended as an informal reference for clerks who wish to gain a better understanding of Tennessee sales and use tax requirements regarding motor vehicles and boats. The industrial machinery must be necessary to and primarily used for the f The goal of this manual is to provide nonprofit organizations operating in Tennessee with a central resource regarding Tennessee state and local taxes. Our free online guide for business owners covers Tennessee sales tax registration, collecting, filing, due dates, nexus obligations, and more. Tennessee residents whose primary home was damaged by a natural disaster can apply for a refund of sales tax, up to $2,500, on appliances, furniture, and building supplies. Code Ann. The due date for the sales and use tax return is the 20th of the month following the end of the reporting period. § 67-1-108. These instructions apply to Tennessee’s sales and use tax return for periods beginning on or after July 1, 2025. The department also assists with the collection of certain local taxes. Other Options: If you want to file the Tennessee State Government - TN. Find all need-to-know information about sales and use tax in Tennessee here! TaxConnex covers rates, taxability, nexus, how to file, and services. org Tennessee Sales & Use Tax Tennessee levies a 7% state sales tax on the retail sale, lease or rental of most goods and some services. Tennessee now requires that out-of-state businesses (a. a. Mar 27, 2025 · Tennessee allows for an exemption of sales tax on industrial machinery purchased by a qualified manufacturer or processor. Tax guidance from the Department of Revenue on sales and use tax. Please be Sales tax is levied on cable, wireless cable, broad band television programming, direct-to-home satellite services, and the provision of intrastate, interstate, or international telecommunication services. Tennessee use tax applies when Tennessee sales tax is not paid when purchasing a taxable product, which includes computer software, specified digital products, and video game digital products. Mar 27, 2025 · SUT-8 - Sales and Use Tax Online Filing All sales and use tax returns and associated payments must be submitted electronically through the Tennessee Taxpayer Access Point (TNTAP). Computer Software Services Subject to Sales and Use Tax This notice is to clarify the taxability of computer software services.