Home/Sales Tax/TN

Tennessee

Sales Tax Rules

7%
State Rate
9.75%
Max Combined
Taxable
SaaS
$100k
Nexus Threshold

Full Tax Details

State Sales Tax Rate7%
Max Combined Rate9.75%
Economic Nexus (Sales)$100,000
Economic Nexus (Transactions)N/A
SaaS TaxableYes
Digital Goods TaxableYes
Groceries ExemptNo
Clothing ExemptNo
Filing FrequencyMonthly, Quarterly, or Annual
Online FilingAvailable

SaaS Tax Details

SaaS is taxable as the use of computer software.

Grocery Details

Taxed at a reduced state rate of 4% plus local taxes.

Official Source

Tennessee Department of Revenue

View Official Site →

Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.