Do marketplace sales count toward the Tennessee threshold?

Marketplaces collect and remit for their own sales, but most states still count those sales when measuring your $100,000 threshold. Check the Tennessee Department of Revenue guidance before excluding them.

Which rate does an online seller charge in Tennessee?

Tennessee sources remote sales to the delivery address, so you charge the buyer's combined state, county, city and district rate, not your own location's rate.

Do I have to charge sales tax for online sales in Tennessee?

Quick answer

Only after you cross economic nexus. Once you exceed $100,000 in sales into Tennessee over 12 months, you must register with the Tennessee Department of Revenue and charge the buyer's destination rate.

Tennessee lowered its threshold to $100,000 in Tennessee retail sales with no transaction count.

Rule summary

How Tennessee treats each category.

Online sales and nexus rules in Tennessee
Economic nexus — sales threshold	$100,000
Transaction-count threshold	None — sales volume only
Marketplace facilitator collection	Required — Amazon, Etsy and eBay collect on your behalf for their sales
Rate to charge	The buyer's destination rate (9.25%–9.75% in covered Tennessee metros)
Registration authority	Tennessee Department of Revenue

Source: Tennessee Department of Revenue · rates as published for 2026

This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Tennessee Department of Revenue or a tax professional before relying on it for filing.

Combined rates in Tennessee

What a taxable purchase actually costs in Tennessee.

Frequently asked

Answers pulled from the same rule set.

Do I have to charge sales tax for online sales in Tennessee?: Only after you cross economic nexus. Once you exceed $100,000 in sales into Tennessee over 12 months, you must register with the Tennessee Department of Revenue and charge the buyer's destination rate.
Do marketplace sales count toward the Tennessee threshold?: Marketplaces collect and remit for their own sales, but most states still count those sales when measuring your $100,000 threshold. Check the Tennessee Department of Revenue guidance before excluding them.
Which rate does an online seller charge in Tennessee?: Tennessee sources remote sales to the delivery address, so you charge the buyer's combined state, county, city and district rate, not your own location's rate.

More Tennessee guides

Other Tennessee rules that change the total.