The formulas
- Sales tax = sale x (7% + local rate)
- Nexus when counted sales are more than $100,000 in the previous 12 months
- Counted sales = direct sales + marketplace sales on which the facilitator did not collect
How it works
Figures current as of November 2026.
The state rate is 7 percent on general merchandise. The tool multiplies the sale amount by the statewide base rate plus the local rate you enter (local option rate for the delivery address) and shows the state and local parts separately. The local rate depends on where the goods are delivered.
A seller with no physical presence in Tennessee must register and collect once it has more than $100,000 of retail sales to Tennessee customers, taxable or exempt in the previous 12 months. Marketplace sales on which the facilitator collects Tennessee tax do not count toward your own threshold; marketplace sales on which it does not collect do count.
Tennessee states the marketplace rule by registration: add your direct sales to your sales through marketplace facilitators that are not registered with Tennessee. A registered facilitator collects the tax on the sales it facilitates.
A seller with a physical presence in Tennessee, such as staff, an office or inventory, must collect regardless of the threshold. The tool does not decide whether a product is taxable or exempt; enter the taxable price.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
What is the Tennessee sales tax rate?
The state rate is 7 percent on general merchandise. Local rates are added on top by delivery address.
What is the Tennessee economic nexus threshold?
More than $100,000 of retail sales to Tennessee customers, taxable or exempt in the previous 12 months.
Do marketplace sales count toward the Tennessee threshold?
Marketplace sales on which the facilitator collects Tennessee tax do not count toward your own threshold; marketplace sales on which it does not collect do count.
Sources
- Tennessee Department of Revenue, Sales and Use Tax
- Tennessee Department of Revenue, Out of State Dealers and Marketplace Facilitators
- Tennessee Department of Revenue, MS-10 Remote Seller Must Combine Its Own Sales and Sales Made Through Unregistered Marketplace Facilitators
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.