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Avalara Help Center

Why am I getting the wrong rate in Tennessee?

Overview

When we bill a customer for the tax on invoice # 04005803 our EDP System which goes through Avalara says that we are only charging them a rate of 8.6%. The tax rate given by Avalara under the basic tax Calculator is 9.25%. Which is the correct rate so that we can charge them the correct rate.

Environment

Avalara Avatax
Tennessee

Resolution

AvaTax handles the Tennessee single article tax as follows. Three calculations are made when calculating sales tax in Tennessee: 1) State tax, 2) Local tax and 3) Single article tax

 
State tax rate of 7% is applicable to all amounts.
Local tax rate between 2.25%  and 2.75% is applicable between $0-$1600 for all items. (This rate is dependent on the local city or county rate.)
 
State single article tax rate of .0275% is applicable for all single items between $1600-$3200.