Tennessee Nexus Requirements
Tennessee's economic nexus threshold is $100,000. Learn about all nexus types, registration requirements, and compliance steps.
Economic Nexus Threshold
Economic nexus threshold is $100,000 in annual sales
Physical Presence Requirements
Physical presence includes property, employees, or inventory. This can include maintaining an office, warehouse, or inventory location; having employees or contractors working in the state; attending trade shows or conducting business meetings regularly; or storing property or equipment within state borders.
Employee Nexus in Tennessee
No state income tax on wages; no employer withholding required
Affiliate & Click-Through Nexus
Affiliate Nexus
AppliesAffiliate nexus applies to related entities
Click-Through Nexus
AppliesClick-through nexus provisions apply
Marketplace Facilitator
Tennessee requires marketplace facilitators (such as Amazon, Etsy, and similar platforms) to collect and remit sales tax on behalf of third-party sellers. If you sell exclusively through qualifying marketplaces, the marketplace handles your Tennessee sales tax collection obligations.
How to Register in Tennessee
Determine your nexus
Confirm you have economic or physical nexus based on the thresholds above.
Gather required information
You will need your EIN, business formation documents, and expected sales volume in Tennessee.
Register online
Complete the registration through Tennessee's official portal.
Begin collecting & remitting
Once registered, start collecting applicable taxes and file returns by the assigned schedule.
Frequently Asked Questions
What is the economic nexus threshold in Tennessee?
Tennessee's economic nexus threshold is $100,000 in annual sales. Once you exceed this threshold, you are required to register for sales tax collection and remittance in Tennessee.
What creates physical presence nexus in Tennessee?
Physical presence includes property, employees, or inventory. This can include having employees, offices, warehouses, inventory, or other tangible property in the state.
How do I register for sales tax in Tennessee?
You can register for Tennessee sales tax through the state's online portal. Visit the Tennessee Department of Revenue website to complete your registration. You will need your business information, EIN, and expected sales volume.
What are the employer tax obligations in Tennessee?
No state income tax on wages; no employer withholding required
Does Tennessee have marketplace facilitator laws?
Yes, Tennessee requires marketplace facilitators (such as Amazon, Etsy, and similar platforms) to collect and remit sales tax on behalf of third-party sellers. If you sell exclusively through marketplaces, the marketplace may handle your Tennessee sales tax obligations.
Does Tennessee have affiliate and click-through nexus?
Yes, Tennessee recognizes affiliate and click-through nexus. Affiliate nexus applies to related entities. Click-through nexus provisions apply.
What happens if I don't register for nexus in Tennessee?
Failing to register and collect applicable taxes in Tennessee can result in back taxes, penalties, and interest on uncollected amounts. Tennessee may also conduct audits that cover multiple prior years. It is recommended to register proactively once you determine you have nexus.
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