Tennessee sales tax is 7% at state level on most goods and taxable services, 4% on food, plus a local rate of up to 2.75% that every county or city sets. Returns are due on the 20th of the month after the period ends, and they must be filed electronically.
That's the headline. Underneath it sits a rule most sellers never meet in other states: the local tax stops at a set price on any single item, and a separate state tax kicks in on the slice above it. This guide uses the Tennessee Department of Revenue's own pages, read in October 2026.
The Tennessee rate stack
| Layer | Rate (as of October 2026) | What it applies to |
|---|---|---|
| General state rate | 7% | Most tangible personal property and taxable services |
| State rate on food and food ingredients | 4% | Grocery food |
| Local rate | Up to 2.75%, in multiples of 0.25 | Set by each county or incorporated city |
| State single article tax | 2.75% | The part of one item's price between $1,600 and $3,200 |
Every local jurisdiction in Tennessee has a local sales and use tax rate, and the local sales rate and use rate are always the same. You file and pay the local tax to the Department of Revenue on the same return as the state tax, so there's one return, not two.
The single article rule, step by step
Here's the insight that trips up anyone selling furniture, machinery or anything else with a high ticket. In most local jurisdictions, local tax applies only to the first $1,600 of the price of any single article. Then the state adds a single article tax of 2.75% on the part of the price between $1,600 and $3,200. Anything above $3,200 doesn't get the single article tax at all.
- Charge the 7% state rate on the full price of the item.
- Charge the local rate on the price up to the local cap, which is usually $1,600.
- Charge the 2.75% state single article tax on the slice between $1,600 and $3,200.
- Charge nothing extra on any amount above $3,200.
The cap works per item, not per invoice. Ten chairs on one invoice are ten single articles. And it doesn't cover everything: custom software, software maintenance contracts, services, amusements, digital products and warranty contracts pay local tax on the whole price.
Special state rates worth knowing
| Item | State rate |
|---|---|
| Food and food ingredients | 4% |
| Aviation fuel | 4.25% |
| Industrial water for manufacturers | 1.0% |
| Industrial energy fuel for manufacturers | 1.5% |
| Manufactured homes (half the general rate) | 3.5% |
| Direct-to-home satellite TV | 8.25% |
When Tennessee returns are due
| Filing frequency | Due date |
|---|---|
| Monthly | 20th of the month after the reporting period |
| Quarterly | January 20, April 20, July 20 and October 20 |
| Annually | January 20 |
All sales and use tax returns and payments must be submitted electronically, and the Department points sellers to the Tennessee Taxpayer Access Point (TNTAP). You can also file through an approved software vendor. Remote sellers with no Tennessee location that registered through the Streamlined system can use the simplified electronic return instead.
Do you need to register?
- You have a physical presence in Tennessee, such as a shop, staff or operations there.
- You're an out-of-state seller with $100,000 or more in sales to Tennessee customers over the previous 12 months. That figure includes exempt sales but not sales for resale.
- You run a platform that sells for third parties and facilitated more than $100,000 of Tennessee sales over the previous 12 months.
- You sell some goods through a third-party platform and some through your own site, and you have a Tennessee presence or cross $100,000.
If every one of your taxable sales goes through a platform that already collects Tennessee tax for you, the Department says you don't have to register. If you buy stock to resell, a resale certificate keeps tax off your purchases.
The sales tax holiday
Tennessee's back-to-school holiday runs from 12:01 a.m. on Friday, July 30, 2027 to 11:59 p.m. on Sunday, August 1, 2027. Clothing and school supplies priced at $100 or less per item and personal computers at $1,500 or less are tax-free, as of October 2026. Sellers can't split a pair of shoes or a set to get under the limit, and items bought for business use don't qualify.
Use tax is the other half
If a seller didn't charge Tennessee sales tax on something you bring into the state, you owe use tax at the same rate. It applies to everything that would be taxable except services and amusements. Individuals who aren't registered can pay it on the consumer use tax return, and that return doesn't need a TNTAP logon.
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Common Tennessee sales tax mistakes
- Charging local tax on the full price of a big single item.
- Forgetting the 2.75% single article tax on the $1,600 to $3,200 slice.
- Applying 7% to grocery food that's taxed at 4%.
- Trying to file on paper when returns must be electronic.
- Missing the 20th because the quarter was quiet.
My verdict
Tennessee charges one of the higher rates around, with one clever twist. Learn the single article rule once, build it into your checkout, and the rest is a monthly or quarterly return by the 20th on TNTAP. If you sell big-ticket goods, test a $3,000 item through your system before you trust it. You'll also want to know the pay rules if you hire, so here's Tennessee's minimum wage.
Frequently asked questions
What is the sales tax rate in Tennessee?
The general state rate is 7%, food is taxed at 4% and every local area adds its own rate of up to 2.75%, as of October 2026.
What is the Tennessee single article tax?
A 2.75% state tax on the part of one item's price between $1,600 and $3,200. Local tax usually stops at the first $1,600 of a single item.
When are Tennessee sales tax returns due?
On the 20th of the month after the period ends. Quarterly returns are due January 20, April 20, July 20 and October 20, and annual returns on January 20.
Do out-of-state sellers collect Tennessee sales tax?
Yes, once they make $100,000 or more in sales to Tennessee customers over the previous 12 months, counting exempt sales but not sales for resale.
Can you file Tennessee sales tax on paper?
No. All sales and use tax returns and payments must be submitted electronically, through TNTAP or an approved software vendor.
