SUT-13 - Sales and Use Tax Rates – Overview

The state sales tax rate for most taxable items and services is 7%. However, there are exceptions. For example, sales of food and food ingredients are taxed at a state rate of 4%. Prepared food, dietary supplements, candy, alcoholic beverages, and tobacco continue to be subject to the general state sales and use tax rate of 7%, plus the applicable local tax rate. All other tangible personal property, unless specifically exempted, is 7%. The state single article rate is 2.75% on any single item sold for a price in excess of $1,600 but not more than $3,200.

Other rate exceptions examples would be for specified digital products, aviation fuel, energy fuel for manufacturers, water for manufacturers. Would it be confusing to just address one in the example above?

Local tax rates are set by local county and some incorporated city governments and cannot exceed 2.75%.

For sales tax calculation reference charts and local tax charts, please visit the sales and use tax page on the Department of Revenue's website. 

Reference: Important Notice 17-07. Tenn. Code Ann. §§ 67-6- 102 and 67-6-228.

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