Non-Taxable Services in Tennessee: What Business Owners Need to Know

 


Non-Taxable Services in Tennessee: What Business Owners Need to Know

If you operate a service business in Tennessee, you may wonder whether you are required to charge your customers sales tax.

Unlike sales of most tangible personal property, many professional and personal services in Tennessee are not subject to sales tax. Tennessee generally taxes a service only when state law specifically identifies that type of service as taxable.

Be Careful: Some Services ARE Taxable

Not every service is exempt from Tennessee sales tax.

Examples of Services Generally Not Subject to Tennessee Sales Tax

Many businesses provide services that are generally not subject to Tennessee sales tax. Examples include:

  • Legal services
  • Accounting and many professional consulting services
  • Medical services
  • Physical therapy services
  • Hairdresser and cosmetology services
  • Barber services

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