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Tennessee Sales Tax Exemptions
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Tennessee

 

State Sales Tax: 7.0%

Local Sales Tax: 1.50-2.75%

Statute of Limitations: 36 months plus months in current year

 

 

Use-Based Exemptions

 

The state offers an exemption when utilities are used for the following purposes. Click on a qualifying use for more information.

 

Qualifying Use Applies To
Agriculture Electricity, Gas, Other Fuels
Manufacturing* Electricity, Gas, Water, Other Fuels
Residential Electricity, Gas, Other Fuels

 

Manufacturing: Manufacturers can reduce their state sales tax rate to 1.5% on electricity, gas and other fuels and 1.0% on water. Local sales tax on water can be reduced to 0.5%. A full exemption from sales tax is only available if there is direct contact with the product being manufactured (e.g. electrolytic processes).

   
  The information on this site should be used only for general guidance and not as a substitute for consultation with a professional tax advisor. Before making any decision or taking any action based upon information located on this site, you should consult with a USTC professional.
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