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Tennessee Sales Tax Rate

Written by:

Edited by:

Reviewed by: Daniel Javor

Published on April 5, 2022

Updated on September 13, 2022

Tennessee Sales Tax Rate

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Tennessee Sales Tax Rate

If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Tennessee, the first step is visiting the department of revenue website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit. 

What Products and Services Are Subject to Sales Tax in Tennessee?

financial paper documents with rubber stamp marked with tax office

Tangible goods are subject to sales tax in Tennessee. Services that are subject to sales tax in Tennessee include the installation and repair of tangible property, telecommunications, and lodging. Generally, food is exempt from sales tax in Tennessee. 

Tennessee Sales Tax Rate

The sales tax rate in Tennessee is 7%.

Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.

How to Register for Tennessee Sales Tax

In Tennessee, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration: 

  1. Fill out the taxpayer registration form
  2. There is no fee to apply for a seller’s permit in Tennessee

Use our Sales Tax Calculator to calculate taxes and total purchase amount. 

Conclusion 

In Tennessee, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.