Tennessee sales tax codes and rates
Tennessee's state sales tax rate is 7%; county and city rates come on top and are not included. A Nefin company that sells into Tennessee gets 5 sales codes, each named after the line of the SLS 450 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under TN-3, and Nefin works out the use tax due.
Tennessee codes from the SLS 450
Each code is “TN-” plus the line it fills on the SLS 450. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| TN-7 | TN state net taxable 7% (SLS 450 Line 7) | 7% |
| TN-A2 | TN sales for resale (SLS 450 Schedule A Line 2) | 0% |
| TN-A4 | TN sales to government / nonprofits (SLS 450 Sch A Line 4) | 0% |
| TN-A7 | TN sales in interstate commerce (SLS 450 Schedule A Line 7) | 0% |
| TN-A9 | TN other deductions (SLS 450 Schedule A Line 9) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| TN-3 | TN out-of-state purchases for use, use tax (SLS 450 Line 3) | 0% |
Tennessee in the tax books
Nefin’s sales tax book has one row per invoice and one column per SLS 450 line; these are the Tennessee columns and the totals worked out from them.
Sales Tax Book
Tennessee - SLS 450
- [TN-7]State net taxable total (Line 7)
- [TN-A2]Sales for resale (Sch A Line 2)
- [TN-A4]Sales to government and nonprofits (Sch A Line 4)
- [TN-A7]Sales in interstate commerce (Sch A Line 7)
- [TN-A9]Other deductions (Sch A Line 9)
Totals Nefin calculates
- [TN-1] Gross sales (Line 1)Sum of the net amounts in [TN-7] + [TN-A2] + [TN-A4] + [TN-A7] + [TN-A9]
- [TN-8] State sales and use tax 7% (Line 8)Net amount × 7%, from [TN-7]
Use Tax Book
Tennessee - SLS 450
- [TN-3]Out-of-state purchases for use (Line 3)
Totals Nefin calculates
- [TN-8] State sales and use tax 7% on purchases (part of Line 8)Net amount × 7%, from [TN-3]
Frequently asked questions
What is the Tennessee sales tax rate?
The state rate is 7%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which Tennessee sales tax codes does Nefin set up?
5 sales codes from the SLS 450, for example TN-7 (TN state net taxable 7% (SLS 450 Line 7)), TN-A2 (TN sales for resale (SLS 450 Schedule A Line 2)), TN-A4 (TN sales to government / nonprofits (SLS 450 Sch A Line 4)).
How does Nefin handle Tennessee use tax?
Book a purchase on which the vendor charged no Tennessee tax under TN-3 (TN out-of-state purchases for use, use tax (SLS 450 Line 3)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 7%.
Are these Tennessee codes official?
They are a starting point. Each code follows a line of the SLS 450, but check them against your return before you file, and edit them in Settings, VAT rates.