# Why is my Tennessee transaction taxing different than expected?

## Overview

My Tennessee transaction is not calculating the way I expected and need to know why.

Avalara Avatax

## Resolution

Check to make sure that the Tennessee Single Item Tiered Tax isn't coming into play:

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.

Example: Single item sold for \$4000 to Nashville

State tax: \$4000 x .07 = \$280
Local tax: \$1600 x .0225 = \$36
Single Article tax: \$1600 x .0275 = \$44

Total tax: \$360

Example: Two items sold for \$2000 each to Nashville

State tax: 2 * (\$2000 x .07) = \$280
Local tax: 2 * (\$1600 x .0225) = \$72
Single Article tax: 2 * (\$400 x .0275) = \$22

Total tax: \$374