Nashville Sales and Use Tax Rates - City Guide

Taxation and Finance Tennessee 4 Minutes Read · published February 07, 2026 Flag of Tennessee

Nashville, Tennessee buyers and businesses must account for state and local sales and use taxes when making purchases or selling goods and certain services. The state sets a base sales tax rate and local jurisdictions add local option taxes; applicability depends on where the sale is sourced and the item or service type. This guide explains who sets rates, how to find the correct rate for Nashville (Davidson County), collection and remittance responsibilities for sellers, and practical steps to register, pay, and appeal assessments in Nashville, Tennessee.

How rates are set and applied

Tennessee imposes a statewide sales and use tax; local option taxes apply in counties and municipalities. Sellers must collect the correct combined rate for the location of the sale or delivery and remit it to the Tennessee Department of Revenue. For general information about the state sales and use tax, see the Tennessee Department of Revenue summary. [1]

  • State base rate: 7% general state sales tax (state rate applied before local options).
  • Local option and county/city rates vary; consult the Department of Revenue county and city rate table for Davidson County specifics. [2]
  • Sellers must register, collect, and remit through Tennessee Department of Revenue filing channels unless Metro Nashville provides a municipal collection program.

Penalties & Enforcement

Enforcement of sales and use tax collection and remittance in Nashville is handled primarily through the Tennessee Department of Revenue; Metro Nashville may coordinate on local licensing and compliance. Specific civil penalties, fines, and interest for late payment or failure to collect are governed by state statute and Department of Revenue rules. Where the Department or statute does not list a precise dollar amount on its public pages, this guide notes that the amount is "not specified on the cited page" and points you to the controlling official resource for the current figure. [3]

  • Fine amounts: not specified on the cited Tennessee Department of Revenue pages; see the Department and Tennessee Code for statutory penalty schedules.
    Penalties and interest can include monetary fines and accrued interest on unpaid tax.
  • Escalation: first, repeat, and continuing offences are addressed by department assessments and administrative penalties; specific escalation amounts or tiered fines are not specified on the cited page.
  • Non-monetary sanctions: administrative orders, liens, seizure of assets, suspension of business privileges, and referral for civil or criminal prosecution are authorized under state law and enforcement rules.
  • Enforcer and complaint path: Tennessee Department of Revenue enforces state sales and use tax; Metro Nashville Finance/Revenue handles local licensing and coordination. To report suspected evasion or file complaints, contact the Department of Revenue or Metro Nashville Revenue Division (links in Help and Support).
    Use the official reporting channels to ensure proper intake and confidentiality.
  • Appeals and review: taxpayers may appeal Department of Revenue assessments under the department appeal procedures; exact time limits and appeal windows are governed by statute and administrative rules and should be confirmed on the Department of Revenue site (see cited pages for current procedures and deadlines).
  • Defences and discretion: common defences include demonstrating tax-exempt status, resale certificates, nontaxable sale classification, or having a permit/variance; official guidance and forms are published by the Department of Revenue.

Applications & Forms

The Tennessee Department of Revenue publishes registration and filing forms for sales and use tax accounts, including online registration and e-filing options. Specific form names or numbers for municipal-level collection in Nashville are not published on the Metro Nashville pages consulted; taxpayers should use state registration and consult Metro Nashville Finance if local business tax registration is required. For state registration and forms, see the Department of Revenue portal.[1]

Register early to avoid penalties for collecting or remitting late.

How to determine the correct rate for a purchase

  1. Identify the delivery or sourcing address for the sale.
  2. Check the Tennessee Department of Revenue county and city rate table for Davidson County to find local option rates.[2]
  3. Confirm whether the good or service is taxable or exempt under Tennessee law.
  4. Calculate the combined state plus local rate and collect from the buyer; remit via the Department of Revenue filing system by the required deadline.

FAQ

Who sets the sales tax rate that applies in Nashville?
The state of Tennessee sets the base sales tax; Davidson County and municipal local option taxes are added by local jurisdictions per state law. For official rate tables see the Tennessee Department of Revenue.[2]
What should a Nashville business do to register to collect sales tax?
Register with the Tennessee Department of Revenue for a sales and use tax account and check Metro Nashville Finance for any local licensing requirements; use the Department of Revenue registration portal for account setup.[1]
How do I appeal an assessment for unpaid sales tax?
Follow the Tennessee Department of Revenue administrative appeal procedures; specific time limits and steps are set in department guidance and statute—consult the Department for the current appeal process.

How-To

  1. Gather the purchase or delivery address and invoice details.
  2. Look up the applicable rate on the Tennessee Department of Revenue county and city rates table for Davidson County.[2]
  3. If you are a seller, register with the Department of Revenue and begin collecting at the combined rate.
  4. File returns and remit tax through the Department of Revenue e-file system by the due dates to avoid penalties.

Key Takeaways

  • Tennessee state sales tax is the base; local options add to the combined rate for Nashville/Davidson County.
  • Register and remit through the Tennessee Department of Revenue; check Metro Nashville for local licensing requirements.

Help and Support / Resources

  1. [1] Tennessee Department of Revenue - Sales and Use Tax
  2. [2] Tennessee Department of Revenue - County and City Rates
  3. [3] Metro Nashville - Finance, Revenue Division

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