Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Tennessee, sales tax is a state-imposed tax on the sale of most goods and some services. The state sales tax rate is 7%, but local jurisdictions can add additional sales taxes, which can make the total sales tax rate as high as 9.75% in some areas. Tennessee's Department of Revenue is responsible for the administration and collection of sales taxes. The sales tax applies to the sale, lease, or rental of tangible personal property and certain services. It is the responsibility of retailers to collect the tax from consumers and remit it to the state. There are exemptions to the sales tax, such as certain food items, prescription medications, and some agricultural supplies. It's important for businesses operating in Tennessee to understand their obligations under the state's sales tax laws to ensure compliance.