Tennessee sales tax for contractors
What we found on official Tennessee government pages about sales tax and tax setup for contractors. Each line shows its source and the date it was read. This is general information, not tax or legal advice. Rules change: verify with your CPA before you rely on any of it.
State sales tax rate
7% general state rate (4% food, 3.5% manufactured homes) plus local; single-article rules; no scheduled change seen
Source: https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/august-2026/sales-use-tax-manual.pdf. Last verified 2026-11-02.
How contractors are taxed
contractors/subs are end consumers of materials, pay tax to vendor or use tax, charge customer no tax on materials; contractor-dealers (also sell materials) use resale certificate on resale stock and pay use tax on contract use; special tax = business tax Classification 4 on gross sales (lump-sum or cost-plus), deemed location when receipts over $100,000 in a jurisdiction; T&M not addressed
Source: https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/June-2024/Industry-Specific-Tax-Manual-Contractors.pdf. Last verified 2026-11-02.
Filing and due dates
monthly if $400+ gross monthly sales/$4,800+ annual (per manual text); may file monthly or quarterly if avg liability $1,000 or less/month; due 20th (quarterly Jan/Apr/Jul/Oct 20; annual Jan 20); e-file required via TNTAP
Source: https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/august-2026/sales-use-tax-manual.pdf. Last verified 2026-11-02.
Certificates and forms
Streamlined Certificate of Exemption, Certificate of Resale (contractor-dealers), Certificate of Registration, manufacturer/industrial machinery authorization numbers, Remotely Accessed Software Direct Pay Permit
Source: https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/June-2024/Industry-Specific-Tax-Manual-Contractors.pdf. Last verified 2026-11-02.
What this page does not cover
Local taxes, special districts, and any detail we could not confirm on an official page are left out on purpose. Confirm current rates, forms and due dates with the state agency and your CPA.
How BossHours helps
BossHours keeps your quotes, invoices and job records in one place so your accountant has what they need at filing time. It does not give tax or legal advice.
See also the contractor guides and free tools.
Try BossHours free for 14 days
Field Hours $149, Office Hours $379 and After Hours $499 a month. Unlimited users on every plan, no setup fee, month to month, 14-day free trial.
Start your free trial