Free Tennessee Sales Tax Calculator

Tennessee Sales Tax Calculator

Select Search Mode:

Found our Free Tennessee Sales Tax Calculator useful? Bookmark and share it.

Facebook
X
LinkedIn
Email
WhatsApp
Print
Tennessee map covered in USD.

How to Use the Tennessee Sales Tax Calculator

Our Tennessee Sales Tax Calculator is designed with simplicity in mind. Follow these easy steps to calculate the sales tax for any purchase in Tennessee:

Enter the Purchase Amount

  • Locate the “Purchase Amount ($)” field.
  • Type in the total cost of the item(s) you’re buying.
  • Make sure to enter only numerical values (e.g., “100” or “100.00”).

Select Your Search Mode

Choose how you want to find the sales tax rate:

  • ZIP Code: If you know the ZIP code of where you’ll make the purchase, select the “ZIP Code” option.
  • Tax Region: If you know the specific tax region name but not the ZIP code, select the “Tax Region” option.

Choose Your Location

  • If you selected “ZIP Code”:
    • A dropdown menu labeled “Select ZIP Code” will appear.
    • Click the dropdown menu and choose the relevant ZIP code from the list. The list is organized alphabetically for easy searching.
  • If you selected “Tax Region”:
    • A dropdown menu labeled “Select Tax Region” will appear.
    • Click the dropdown and choose the applicable tax region name.

Understanding the Results

The results section will show you:

  • State Tax: The amount of tax levied by the state of Tennessee.
  • County Tax: The amount of tax imposed by the county.
  • City Tax: The amount of tax applied by the city.
  • Total Sales Tax: The combined total of state, county, and city taxes.
  • Total Cost (with Tax): The final price of your purchase, including all taxes.

Sales and Use Tax in Tennessee

Sales Tax

The sales tax is the primary source of funding for the state of Tennessee, making up about 60% of all tax revenue collected. This tax has two components:

  • State Sales Tax: A fixed rate of 7% applied to most goods and services.
  • Local Sales Tax: A variable rate that differs depending on the county and city where the purchase is made. This means the total sales tax you pay can vary significantly from one location to another.

Use Tax

Think of the use tax as the sales tax’s twin. It ensures that taxes are paid on taxable goods, even if they weren’t purchased within Tennessee.

  • When does it apply? You owe use tax when you buy something from a seller who didn’t collect sales tax, and that item is:
    • Brought into Tennessee from another state.
    • Shipped to you in Tennessee from an out-of-state seller.
  • What’s taxable? Almost everything subject to sales tax is also subject to use tax, with the exception of services and amusements.
  • How do you pay? If you’re an individual and not required to register for sales and use tax, you can report and pay use tax through the Tennessee Taxpayer Access Point (TNTAP) website.
The Tennessee Flag

Due Dates and Tax Rates

Category Details
Sales Tax Due Dates Monthly: 20th day of the month following the end of the reporting period.
Quarterly: 20th day of the month following the end of the quarter (January 20, April 20, July 20, October 20).
Annually: January 20.
State Tax The sales tax rate on food is 4%. The general sales tax rate for most tangible personal property and taxable services is 7%. A few products and services have special tax rates.
Local Tax Rates All local jurisdictions in Tennessee have a local sales and use tax rate. The local rate may not be higher than 2.75%. More information about local taxes can be found here.
State Single Article Rates 2.75% on any single item sold in excess of $1,600, but not more than $3,200.

Data Retrieved From: https://www.tn.gov/

Nashville neon guitar sign

Table of Tennessee Special Tax Rates

Special State Tax Rates State Tax Rate Reference
Food and food ingredients 4.0% Tenn. Code Ann. § 67-6-228
Aviation fuel 4.25% Tenn. Code Ann. § 67-6-217
Industrial water for manufacturers 1.0% Tenn. Code Ann. § 67-6-206
Industrial energy fuel for manufacturers 1.5% Tenn. Code Ann. § 67-6-206
Electricity for qualified data center 1.5% Tenn. Code Ann. § 67-6-206
Interstate and international telecommunications sold to business 7.5% Tenn. Code Ann. § 67-6-221
Manufactured homes (tax at 1/2 general state tax rate) 3.5% Tenn. Code Ann. § 67-6-216
Video programming services (cable TV monthly charge from $15.01-$27.50) 8.25% Tenn. Code Ann. § 67-6-226
Direct-to-home satellite television services 8.25% Tenn. Code Ann. § 67-6-227
Qualified common carriers direct pay use tax on Tennessee purchases of tangible property that is used outside the state 3.75% Tenn. Code Ann. § 67-6-219
Hemp-derived cannabinoids 6.0% Tenn. Code Ann. § 67-6-232

Data Retrieved From: https://www.tn.gov/

Single Article and Special Tax Rates in Tennessee

Single Article Local Tax Base Limitation

In most areas of Tennessee, there’s a cap on how much of a purchase is subject to the local sales tax. This is called the “single article local tax base limitation.”

  • What’s the limit? In most jurisdictions, local sales tax only applies to the first $1,600 of the price of a single item.
  • What’s a “single article”? It means an individual item that can be sold on its own, not including any accessories. For example, a refrigerator is a single article, but the ice maker kit you buy with it is not.
  • How does it work? Let’s say you buy a TV for $2,000 in a county with a 5% local sales tax rate. Only $1,600 of that price will be taxed at the 5% rate. The remaining $400 is not subject to local tax.
  • Exceptions:
    • Motor vehicle and boat accessories are included in the $1,600 limit when sold with the vehicle or boat.
    • Custom computer software, software maintenance contracts, services, amusements, certain digital products, and warranties are fully taxed on their entire price, with no $1,600 limit.

Special State Tax Rates

While the general state sales tax rate in Tennessee is 7%, some goods and services have different rates. Here are a few examples:

  • Food and food ingredients: 4%
  • Aviation fuel: 4.25%
  • Industrial water for manufacturers: 1%
  • Manufactured homes: 3.5% (half the general state tax rate)
  • Cable TV (monthly charge $15.01 – $27.50): 8.25%
  • Hemp-derived cannabinoids: 6%

 

Important Note: This is not an exhaustive list. For a complete list of special tax rates and more details, refer to the official Tennessee Code Annotated or consult with a tax professional.

Exemptions, Certificates, and Credits in Tennessee

Tennessee offers various exemptions, certificates, and credits that can impact your sales tax obligations. Here’s a brief overview:

Agricultural Exemption

Farmers, timber harvesters, nursery operators, and dealers may be eligible for a sales tax exemption on certain purchases. To learn more about qualifying items, taxable purchases, and how to manage this exemption, you can find detailed information.

Other Exemptions

A range of exemptions and exceptions can reduce or eliminate sales tax collection and remittance requirements.

  • Entity-based exemptions: These often require a special exemption certificate. Examples include exemptions for government entities and certain non-profit organizations.
  • Product-based exemptions: These typically don’t need a certificate and apply to specific types of goods, like prescription drugs or manufacturing equipment.

 

More details on specific exemptions are available.

Headquarters Tax Credit

Businesses establishing a qualified headquarters facility in Tennessee may be eligible for a tax credit. Information on application procedures and requirements can be found.

Film/Qualified Production Sales Tax Exemption

This exemption applies to tangible personal property, computer software, and services used for “qualified productions” in the state. Find further details on eligibility and how to claim this exemption.

Sales and Use Tax Exemption Verification

If you’re a vendor and a customer claims an exemption, you need to verify it. This is crucial for resellers, non-profits, and individuals or businesses with exemption certificates. You can verify certificates and learn more about the process.

Tennessee Vols Mascot

Table of Exemptions, Certificates and Credits

Exemptions, Certificates, and Credits Description
Agricultural Exemption An exemption is available to farmers, timber harvesters, nursery operators, and dealers. To understand the scope of exemptions and reduced rates, the purchases that remain taxable, and how to effectively administer these tax provisions, click the link on the left.
Other Exemptions Several exemptions and exceptions exist from the requirement to collect and remit sales tax. Most entity-based exemptions require a special exemption certificate, while most product-based exemptions do not. Click the link on the left for more information.
Headquarters Tax Credit A headquarters tax credit is available to taxpayers establishing a qualified headquarters facility in this state. More information on how to apply for this credit can be found by clicking the link on the left.
Film/Qualified Production Sales Tax Exemption A sales and use tax exemption is available for the sale, use, storage, or consumption of tangible personal property, computer software, or services necessary to and primarily used for a “qualified production” in this state. Click the link on the left for more information.
Sales and Use Tax Exemption Verification Application Vendors often encounter customers who wish to make tax-free purchases, either for resale or because they are making a purchase for a non-profit organization, an individual, or a business possessing a valid Tennessee exemption certificate. Information on verifying sales and use tax certificates can be found at the link on the left.

Data Retrieved From: https://www.tn.gov/

Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.

Trusted By

Trusted by 3.2M+ Employees: 21 Years of Service Across Startups to Fortune 500 Enterprises

Join our ever-growing community of satisfied customers today and experience the unparalleled benefits of TimeTrex.

Logo for H&R Block
Hilton Hotels and Resorts logo
HP computers logo
Oracle logo black and white
PWC brand logo
Texas A&M University logo
Mcdonald's brand logo
New York Stock Exchange Logo black and white
Walmart brand logo
London Drugs logo black and white

Strength In Numbers

Join The Companies Already Benefiting From TimeTrex

Users
0
Companies
0
Years
0

Time To Clock-In

Start your 30-day free trial!

Experience the Ultimate Workforce Solution and Revolutionize Your Business Today

TimeTrex Mobile App Hand