Drugs that are purchased under a prescription are exempt from sales and use tax. In addition to standard prescription drugs, this also includes over-the-counter drugs for human use (it must include a label identifying it as a drug) that are purchased pursuant to a prescription. Over-the-counter drugs purchased without a prescription are subject to sales tax. See Important Notice 07-18 for more information.
Are sales of drugs subject to sales tax?
- What services are subject to sales and use tax in Tennessee?
- What are the state and local sales tax rates in Tennessee?
- Which businesses are exempt from business taxes and licensing?
- For franchise and excise taxes, when must a consolidated net worth election form be filed?
- Is a dealer’s purchase of packaging materials, including pallets, that are used to package tangible personal property sold in a retail sale or sale for resale exempt from sales and use tax?