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. The sales tax is comprised of two parts, a state portion and a local portion. The general state tax rate is 7%. The local tax rate varies by county and/or city. Please click on the links to the left for more information about tax rates, registration and filing.

Use Tax

The use tax is the counterpart to the sales tax. All individuals, as well as businesses operating in the state, must pay use tax when the sales tax was not collected by the seller on otherwise taxable products brought or shipped into Tennessee. The use tax applies to all items otherwise subject to sales tax except for services and amusements.

Individual consumers that are not otherwise required to be registered for sales and use tax may pay the use tax on the consumer use tax return that is available in the Tennessee Taxpayer Access Point (TNTAP).