| Tennessee | 7.00% |
| Shelby County | 2.25% |
| City + District Rates Range | 0.00% – 0.50% |
| Combined Sales Tax Rates Range | 9.25% – 9.75% |
Businesses are required to collect sales tax in Shelby County if they have a sales tax nexus in Tennessee and sell to residents of Shelby County, whether at a physical location within the county or online.
Physical Nexus: This occurs when a business has a tangible presence in the state. Examples include having a store, warehouse, office, or employees in Tennessee if your business operates any of these within the state, you have a physical nexus and must collect sales tax from customers in Shelby County. Economic Nexus: This is based on the volume of sales or number of transactions a business conducts in the state. For instance, if your business exceeds a certain threshold of sales or transactions in Tennessee which is often defined as a specific dollar amount or number of transactions, you establish economic nexus. This means even if you don’t have a physical presence in the state, you are still required to collect sales tax from customers in Shelby County.
