Memphis Retail Sales Tax Collection Checklist

Taxation and Finance Tennessee 4 Minutes Read · published February 08, 2026 Flag of Tennessee

Memphis, Tennessee retailers must follow state and local rules when collecting sales tax, registering to collect and remitting to the state. This checklist summarizes who must collect, how to register, collection and remittance timing, recordkeeping, common violations and enforcement pathways so brick-and-mortar and online merchants in Memphis can meet obligations and reduce audit risk. Consult the state tax authority for registration and filing tools and the City of Memphis for local business tax or licensing requirements where relevant.

Who must collect

Retailers with sales in Memphis generally must collect Tennessee sales and use tax on taxable sales sourced to the city. Remote sellers with sufficient economic nexus must register and collect under Tennessee law; marketplace facilitators may have separate collection obligations.

Registration & registration triggers

Retailers register for Tennessee sales tax through the Tennessee Department of Revenue online registration and, where applicable, obtain a City of Memphis business tax license. New businesses must register before first taxable sale and existing sellers must update registrations when operations change. For state registration and guidance see the Tennessee Department of Revenue site Sales & Use Tax[1].

Applications & Forms

  • State registration: Tennessee online registration (TNTAP) or equivalent application; specific form number not specified on the cited page.
  • City license: City of Memphis business tax or license application where local business tax applies; check the City of Memphis Business Tax page for form names and submission instructions[2].
Register with the state before making taxable sales in Memphis.

Collection, rates and remittance

Sales tax in Memphis is comprised of Tennessee state tax plus local option taxes where applicable; retailers must charge the correct combined rate at the point of sale and remit on the state filing schedule. Determine the proper tax rate by sourcing rules under Tennessee law and update POS systems for local rate changes.

  • When to collect: collect at sale for taxable transactions.
  • When to remit: follow Tennessee filing frequencies and due dates as set by the Department of Revenue; exact filing deadlines and frequency are listed on the state site and may vary by tax liability size.
  • Records: retain sales records, exemption certificates and returns for the period required by state law; specific retention periods not specified on the cited page.

Penalties & Enforcement

Enforcement is carried out by the Tennessee Department of Revenue for sales and use tax collection and by City of Memphis revenue or business licensing units for local business tax compliance where applicable. Civil penalties, interest and administrative assessments may apply for late filing, late payment, failure to collect or failure to remit.

  • Monetary fines: specific dollar amounts or percentage penalty rates are not specified on the cited pages; consult the Tennessee Department of Revenue for current penalty and interest schedules.[1]
  • Escalation: information about first, repeat or continuing offence escalation and ranges is not specified on the cited pages.
  • Non-monetary sanctions: administrative assessments, liens, hold on business license renewal, seizure actions and referral to court may occur; exact remedies and procedures are governed by state law and administrative rules.
  • Enforcer: Tennessee Department of Revenue administers sales and use tax; City of Memphis enforces local business tax and licensing matters. To report noncompliance or request review, contact the Department of Revenue or City Finance Business Tax office.[1][2]
  • Appeals and review: administrative appeal routes exist through the Tennessee Department of Revenue administrative procedures; specific time limits for appeal filings are not specified on the cited pages.
If you receive a notice, act promptly to request a review or file the required return to limit additional penalties.

Applications & Forms

  • Sales tax registration: Tennessee online registration (TNTAP) or equivalent web form; check the state page for login and submission instructions.[1]
  • City business tax application: name and filing method listed on the City of Memphis Business Tax page; if no form is published online, contact the City Finance office for current procedures.[2]

Common violations

  • Failing to register before collecting taxable sales.
  • Charging incorrect local rates or failing to update POS systems.
  • Not retaining exemption certificates or customer documentation.
  • Late remittance or failure to file returns on schedule.

FAQ

Do I need to collect sales tax in Memphis?
Yes—if you make taxable retail sales sourced to Memphis you must collect sales tax and remit to Tennessee; remote sellers meeting economic nexus thresholds also must register and collect.
Where do I register to collect sales tax?
Register with the Tennessee Department of Revenue online for sales and use tax; obtain any required City of Memphis business tax or license via the City Finance Business Tax page.[1][2]
What records should I keep?
Keep sales invoices, exemption certificates, returns and supporting documents for the retention period required by state law; check the Department of Revenue for exact retention guidance.

How-To

  1. Confirm taxability of your products and services under Tennessee law.
  2. Register for a Tennessee sales tax account online with the Department of Revenue.[1]
  3. Obtain any required City of Memphis business tax license and update local records.[2]
  4. Collect the correct combined tax rate at the point of sale and keep documentation for each taxable transaction.
  5. File returns and remit payment on the Department of Revenue schedule to avoid penalties; if you receive a notice, file or appeal promptly.

Key Takeaways

  • Register with the Tennessee Department of Revenue before making taxable sales in Memphis.
  • Keep exemption certificates and records to support tax-free transactions.
  • Remit on time and respond quickly to any audit or notice.

Help and Support / Resources

  1. [1] Tennessee Department of Revenue - Sales & Use Tax
  2. [2] City of Memphis - Business Tax

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