Tennessee Sales Tax Guide for E-Commerce Retailers

Am I required to collect sales tax in Tennessee?

Businesses that have an employee, location (including inventory in a warehouse), or who do other business in the state are required to register for a sales tax permit and collect sales tax from buyers in Tennessee. 

E-commerce businesses with economic nexus in Tennessee are also required to register and collect.

You have economic nexus in Tennessee if you made more than $100,000 in sales to buyers in Tennessee in the previous 12 months.

How to Register for a Tennessee Sales Tax Permit

Visit the Tennessee Department of Revenue to register for a state tax permit.

Need help? Contact us for help with your Tennessee sales tax registration.

How to Collect Tennessee Sales Tax 

Tennessee is an origin-based sales tax state. This means that retailers based in Tennessee are required to collect sales tax based on tax rate at the address where the sale originates. But rules are different for remote sellers not located in Tennessee.

How to Collect Sales Tax in Intrastate Sales in Tennessee

Since Tennessee is an origin-based sales tax state, this means intrastate sales (sales from a seller to a buyer both in Tennessee) are considered to take place at the seller’s location. This might be your home, warehouse, store, distribution store or other location. If you sell to a buyer in Tennessee, you simply need to collect sales tax at the sales tax rate at your location. That means, if you are based or make sales from Tennessee, you can collect the same sales tax rate from all Tennessee buyers as long as the shipment originates in the state.

How to Collect Sales Tax in Interstate Sales in Tennessee

If you are located outside of Tennessee or the sale originates outside of Tennessee but your buyer is in Tennessee, then simply charge the full Tennessee state + local (city, county, etc.) sales tax rate to your buyer.

Learn more about origin and destination-based sales tax sourcing here.

Learn more about how to collect the right amount of state plus local sales tax here.

Is shipping taxable in Tennessee? 

Yes, the amount you charge your customer for shipping is subject to Tennessee sales tax. But, in general, if the item isn’t taxable, then the shipping is also not taxable, even in states where shipping is otherwise taxable.

Tennessee Sales Tax Due Dates

In Tennessee sales tax is due by the 20th of the month following the taxable period. For example, for monthly filers, your sales tax collected in the month of August would be due by September 20th.

How to File Sales Tax in Tennessee

When your Tennessee sales tax due date rolls around, you can either file yourself online or let a partner like HOST take this onerous task off your plate. 

Learn more about handing off your sales tax filings to HOST here!

More about Tennessee Sales Tax

Learn more about Tennessee sales tax at the Tennessee Department of Revenue.