Nashville Use Tax for Online Purchases
Nashville, Tennessee consumers and businesses must understand when use tax applies to online purchases. Use tax is the complementary tax to sales tax: when a seller does not collect Tennessee sales tax at the point of sale, the purchaser generally owes use tax on taxable items used, stored, or consumed in Nashville. This guide explains who is responsible, how to report and pay, enforcement pathways, and official sources for forms and further help. Information here is based on official Nashville and Tennessee sources; where a specific penalty or fee is not shown on the cited page, the text states that fact. Current as of February 2026.
Who owes use tax
Generally, the person or entity that purchases tangible personal property or certain taxable services for use in Nashville owes use tax when the seller does not collect Tennessee sales tax. Common situations include out-of-state sellers without a Tennessee sales tax certificate, marketplace sales where the marketplace provider does not remit tax, and purchases from private sellers. For state guidance on when tax must be collected and who is liable, see the Tennessee Department of Revenue guidance Tennessee Department of Revenue - Sales and Use Tax[1]. For local code context, consult the Metro Nashville code collection Metro Nashville and Davidson County Code of Ordinances[3].
How to report and pay use tax
- Register for any required Tennessee sales and use tax accounts if you are a business required to collect or remit tax.
- Individuals may report and pay use tax via state forms or the Department of Revenue online filing system when the seller does not collect tax.
- Contact Metro Nashville Finance for local questions about rates or remittance of locally collected portions of the tax. Metro Nashville Finance[2]
Penalties & Enforcement
Enforcement of use tax involves state collection and local coordination. The Tennessee Department of Revenue administers sales and use tax collection and audit functions; Metro Nashville coordinates on local rate application and collection where applicable. Specific fines, penalty rates, and interest for late payment are set by state statute and Department rules; if a precise monetary penalty or escalation scheme is not listed on the cited page, this guide notes that it is "not specified on the cited page." Current enforcement guidance is available from the Tennessee Department of Revenue and Metro Nashville Finance.[1][2]
- Monetary penalties and interest: not specified on the cited page.
- Escalation (first vs repeat offences): not specified on the cited page.
- Non-monetary sanctions may include audit assessments, collection orders, and referral to court for enforcement proceedings.
- Enforcer: Tennessee Department of Revenue; local coordination by Metro Nashville Finance and Revenue Collection offices. Contact Metro Finance for complaints or rate questions. Contact Metro Finance[2]
- Appeals and review: appeal routes are through the administrative appeal process described by the Tennessee Department of Revenue or state statutes; specific time limits are not specified on the cited page.
- Defences/discretion: exemptions, resale certificates, or a seller's collection of tax at point of sale are typical defenses; official exemptions and certificate rules are on the Department of Revenue site.[1]
Applications & Forms
The Tennessee Department of Revenue publishes registration, return, and payment forms for sales and use tax on its website. Metro Nashville may require additional local business tax registration or filings for businesses operating in Nashville. If no specific Metro form is required for reporting use tax by individuals, that fact is noted on the official pages cited.[1][2]
Common violations
- Failure to remit use tax when seller did not collect.
- Using resale or exemption certificates improperly.
- Poor recordkeeping leading to audit assessments.
Action steps
- Determine whether the seller charged Tennessee sales tax at checkout; if not, calculate use tax owed and retain receipts.
- Use Tennessee Department of Revenue online services to register, file, and pay any tax due.[1]
- Contact Metro Nashville Finance for local questions on rates, local components, or business registration.[2]
FAQ
- Who is responsible for paying use tax on online purchases?
- The purchaser who uses, stores, or consumes taxable property in Nashville when the seller does not collect Tennessee sales tax is generally responsible.
- Does Nashville have its own separate use tax?
- Nashville applies local option sales tax rates within the Tennessee sales and use tax framework; local components are administered through state filings and Metro coordination.
- How do I pay use tax if I am an individual?
- Individuals may report and pay use tax using Tennessee Department of Revenue instructions and online filing tools; refer to the Department's sales and use tax pages for current forms and e-services.[1]
How-To
- Gather your receipts and determine which purchases were taxable but not charged sales tax.
- Use Tennessee Department of Revenue guidance and online filing to calculate the use tax due.[1]
- Register for any required accounts, file the return, and remit payment by the statutory due date.
- If you have questions about local rates or business filings, contact Metro Nashville Finance for assistance.[2]
Key Takeaways
- Purchasers owe use tax when sellers do not collect Tennessee sales tax.
- Tennessee Department of Revenue and Metro Nashville Finance provide official guidance and filing options.[1][2]
Help and Support / Resources
- Tennessee Department of Revenue - Sales and Use Tax
- Metro Nashville Finance
- Metro Nashville Code of Ordinances (Municode)