Nashville, Tennessee Sales Tax 2026

The City of Nashville is located in Davidson County, Tennessee. The combined sales tax rate is 9.75%.

The total sales tax rate in Nashville comprises the Tennessee state tax and the sales tax for Davidson County. The city also does not impose an additional sales tax. The table below provides a further breakdown of the sales tax rate by jurisdiction.

Combined Sales Tax Rate	9.75%
Tennessee	7.00%
Davidson County	2.75%
Nashville	0.00%
District / Special Tax	0.00%

Nashville Sales Tax Calculator

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The TaxHero sales tax calculator provides a combined sales tax rate based on a full address lookup. A complete address ensures precision since ZIP codes may cross different tax jurisdictions. Results are for reference and may need additional context for compliance. Contact us today for a demo and learn how TaxHero can support your business.

Who Needs to Collect Sales Tax in Nashville, Tennessee?+

Home to Music City, Broadway, and a fast-growing healthcare and tech scene, Nashville is a popular place to start or scale a business.

As a result, businesses in Tennessee must collect sales tax if they have a sales tax nexus and make taxable sales in the state. This applies whether your business has a physical presence in Nashville, such as an office, store, or warehouse, or sells remotely to Tennessee customers and meets the state’s economic nexus thresholds.

The $1,600 Local Tax Cap of Nashville, Tennessee

Nashville (Davidson County) follows Tennessee’s single-article local tax cap, a key rule for businesses purchasing high-cost equipment, furniture, or technology.

Under this rule, for any single article of tangible personal property, the 9.75% combined sales tax rate applies only to the first $1,600 of the item’s price. After that, the local portion (2.75%) stops at $1,600 for each qualifying item.

Here’s how the local sales tax is applied to higher-priced items:

$0.01–$1,600: Full 9.75% (state + Nashville local tax)
$1,600.01–$3,200: 2.75% special state single-article tax, plus local tax
Over $3,200: State tax only (no local tax)

Furthermore, the $1,600 cap applies per item, not per invoice. Multiple items on the same receipt are evaluated separately.

However, there are products that are not eligible for the single-article local tax cap:

Custom (non-prewritten) computer software
Software maintenance contracts
Services and amusements
Specified digital products
Warranty or service contracts covering tangible personal property

In these cases, the transactions are subject to local tax on the entire sales price, regardless of cost.

What Creates Sales Tax Nexus in Nashville, Tennessee?+

A sales tax nexus is created based on your business’s significant presence in a state. Two types of sales tax nexus determine your business’s presence in a state: physical nexus and economic nexus.

Physical Nexus+

A physical nexus is established by having a substantial physical presence or engaging in enough taxable sales activities within a state. Several factors determine a physical nexus in Tennessee.

Physical Location: This means having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This applies to situations where you store products within the state, whether it’s done via a third-party fulfillment center or 3PL (such as Amazon FBA) or an online marketplace.
Business Representatives: Having employees, independent contractors, agents, or other representatives operating within the state on your behalf.
Click-through Nexus: While Tennessee’s older click-through nexus rule referenced a $10,000 sales threshold, the state now primarily enforces sales tax obligations under its $100,000 economic nexus standard, which is the more relevant trigger for most sellers today.
Presence at Tradeshows: Company staff engaging in promotional activities within Tennessee, like attending trade shows, establishes a nexus with the state.

Economic Nexus+

Economic nexus is established based on two common factors. First is your business’s total sales revenue, and second is the number of transactions you’ve had within the state. In Tennessee, the economic nexus threshold is:

$100,000 in gross revenue

In addition, Tennessee enacted a new law reducing the sales tax collection threshold from $500,000 to $100,000, effective October 1, 2020.

To read a comprehensive list of all sales tax rules in Tennessee, you may further visit the Tennessee Department of Revenue webpage.

What are Taxable and Non-Taxable Products in Nashville, Tennessee?+

Every state has different rules when it comes to the taxability of goods and services. In Nashville, Tennessee, a variety of goods are subject to sales tax, and a few are exempt. Check the table below for further reference:

PRODUCT	TAXABLE	EXEMPT
Tangible Products	Cosmetics Electronics Clothing – Clothing items are significantly taxable in Tennessee. However, clothes sold by non-profit organizations may be exempt. Furniture Jewelry Home Goods Groceries – Food and food ingredients are taxed at a reduced 4% state rate. However, it remains subject to local sales tax (up to 2.75%), resulting in an effective 6.75% rate in Nashville Prepared food – Restaurant meals and ready-to-eat items are taxed at the full 7% state rate, plus local taxes, for a total of 9.75% in Nashville.	Feminine Hygiene Products – HB 1218 eventually exempts menstrual hygiene products from sales tax in Tennessee Investment-grade coins, currency, and bullion Textbooks and Workbooks Newspapers and Periodicals Healthcare Products Gasoline Liquefied gas and compressed natural gas Film, including negatives, used in the business of printing or typesetting Home communication terminals, specifically remote control devices, and similar equipment purchased by a video programming service provider for sale/lease to its subscribers Air and water pollution control chemicals United States and Tennessee flags sold by nonprofit organizations Packaging Utility poles, anchors, guys, and conduits School meals Coin-operated telephone services
Services	Repair and installation services of tangible personal property or computer software Lodging services, rooms, and short-term space rentals Cleaning of tangible personal property services Animal bathing Telecommunication services Parking and storing of motor vehicles Television programming services Ancillary services Enriching of uranium materials	The majority of service-based transactions, including professional services and advertising, are not subject to sales tax.
SaaS and Digital Products	SaaS and Digital Products are taxable in Tennessee. Also, specified digital products & remotely accessed software are taxed at the standard local tax rate of 2.5%.	n/a
Shipping and Handling	Shipping and handling charges in Tennessee are taxable if the item is taxable	n/a

Future updates: Tennessee lawmakers are considering legislation to eliminate the grocery tax entirely. While the law is still not yet in effect as of 2026, this potential change could surely impact food taxation statewide.

For in-depth guidance on taxabilities and exemptions on goods and services, read our Ultimate Business Guide to Sales Tax in Tennessee.

How to Get a Sales Tax Permit in Nashville, Tennessee?+

Once you’ve established a sales tax nexus in Nashville, Tennessee, your next step is making sure you stay compliant by registering your business for a sales tax permit, also known as a seller’s permit or a business license in other states.

To get a sales tax permit in Nashville, follow our step-by-step guide:

Step 1: Firstly, go to Tennessee Taxpayer Access Point (TNTAP) and click “View Exemption/Registration Links”. From there, click “Register a New Business.”
Step 2: Secondly, follow the prompts and complete the required fields. When you reach the account type section, make sure to select “Sales and Use Tax.”
Step 3: Then, provide all required documents and information to complete the registration process. Once finished, click “Submit.”
Step 4: Lastly, complete the registration process to fully set up your account.

Afterwards, once you receive your Tennessee sales tax permit, you must keep it displayed at all times in your business’s physical locations. Notably, renewal is not required; it remains valid as long as the business exists, with no changes in ownership or structure.

How Do You File and Remit Sales Tax in Nashville, Tennessee?+

After registering your business in Nashville, Tennessee, your next step is both filing and remitting sales tax returns on time. But before filing your sales tax returns, you must know the filing schedule assigned to you by the state.

To begin filing and remitting your sales tax returns in Tennessee, follow our step-by-step guide:

Step 1: Firstly, prepare your sales tax data or ecommerce report.
Step 2: Secondly, visit the Tennessee Taxpayer Access Point (TNTAP) website.
Step 3: Afterwards, log in with your username and password. If prompted, verify your email or phone number and enter the OTP.
Step 4: From there, access your dashboard, click “File Now.”
Step 5: When prompted, “Are you submitting a file provided by your software vendor?” select “No.”
Step 6: After that, click your Sales and Use Tax account number to open the filing screen.
Step 7: Subsequently, input your Gross Sales for the filing period.
Step 8: Under Schedule B, click “Click Here” to enter your sales data for each jurisdiction (city and county). Once complete, click “OK.”
Step 9: For Schedule C, click “Yes” to enter your sales data for any single-article sales tax. Take note that sales of single articles over $1,600 must be reported on Schedule C to claim the local tax cap.
Step 10. Once finished, review your totals and click Next to continue.
Step 11. If necessary, attach any supporting files or documentation. Then, click Next again.
Step 12. When prompted, select “Yes” to make a payment.
Step 13. Next, enter your bank account information (account number and routing number), then select a payment date no later than the filing due date. After that, click “Submit.”
Step 14. To complete the process, enter your password to finalize the transaction, then click “OK.”
Step 15. Once completed, once you receive a confirmation number, save or print a copy for your records.
Step 16. Finally, save the confirmation to your preferred location for record-keeping. Additionally, keeping online records using Google Drive is a common option.

NOTE: Late filings result in penalties and fees.

For more filing tips, you can further read our comprehensive guide, as shown here: How To File Tennessee Sales Tax Online.

Nashville Finance Department Contact Information+

State: Tennessee Department of Revenue

City: Nashville Finance Department

Contact: 615-862-6151

Popular ZIP codes in Nashville, Tennessee+

37013 37076 37115 37207 37209 37211 37214 37215 37217 37221

Frequently Asked Questions+

1. Does Tennessee have a city sales tax?

Yes, all local jurisdictions in Tennessee also have a local sales and use tax rate. In addition, local sales and use taxes are filed and paid to the Department of Revenue in the same manner as the state sales and use taxes.

2. What items are not taxed in Tennessee?

Tennessee further exempts these products from local sales taxes:

Gasoline (subject to a fuel tax but no sales tax)
Motor fuel (subject to a fuel tax but no sales tax)
Textbooks and workbooks
Newspapers and periodicals
Prescription drugs
Durable medical equipment, such as nebulizers and blood glucose monitors
Utilities
Medical visits

3. Why is Tennessee sales tax so high?

Sales tax is basically Tennessee’s primary source of state revenue. As a matter of fact, it makes up about 60% of total tax collections. In addition, it has two components: a state tax and a local tax. The statewide base rate is 7%, while local rates vary by county or city.

Having Trouble Navigating Nashville, Tennessee Sales Tax?

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