CUT-3 - Consumer Use Tax Rate

The use tax is charged at the same rate as sales tax in Tennessee. The formula is based on a combination of the state tax rate of 7% (4.0% on food or food ingredients) plus the local tax rate levied by your local government. A local government rate chart is available on our website. The tax is applied to the purchase price of the merchandise plus any delivery or other charges that the merchant adds to your bill. The local use tax rate on purchases or downloads of digital videos, digital books, and digital music, as defined in Tenn. Code Ann. Section 67-6-102, is established at 2.50% regardless of the actual local tax rate in effect in the jurisdiction of the user and consumer. The local rate is applicable only on the first $1,600 of the purchase price of any single article of tangible personal property. In addition, a state single article tax of 2.75% is applicable to the purchase price amount of any single article purchased from $1,600.01 to a maximum of $3,200, effectively making the maximum rate of state single article tax to be $44.


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