Georgia vs Tennessee Sales Tax: 7.49% vs 9.61%, Nexus 2026
Reviewed by Nexus by State research team using official state tax sources. Last reviewed .
Compare Georgia and Tennessee sales tax rates: Georgia shows a 7.49% combined state and average local rate with a $100,000 economic nexus threshold, while Tennessee shows 9.61% with a $100,000 threshold. This guide focuses on seller sales-tax obligations rather than personal income-tax returns.
| Metric | Georgia | Tennessee |
|---|---|---|
| Economic nexus threshold | $100,000 | $100,000 |
| Transaction threshold | 200 | None |
| State rate | 4.00% | 7.00% |
| Avg. local rate | 3.49% | 2.61% |
| Combined state + local | 7.49% | 9.61% |
| Marketplace facilitator | Yes | Yes |
| Effective since | 2020-01-01 | 2020-10-01 |
Which state is easier for sellers?
For low-revenue sellers: nexus triggers first in both states because of its threshold. If you cross that first, you register there first.
On rate: Georgia is friendlier for customers with a combined state + local rate of 7.49% vs 9.61%.
Georgia also adds a 200-transaction trigger that Tennessee doesn't have.
Georgia — nexus note
Economic nexus triggers at more than $100,000 in gross revenue from Georgia retail sales OR 200 or more separate retail sales in the previous or current calendar year. Remote sellers must collect state and applicable local sales tax.
Tennessee — nexus note
Economic nexus in Tennessee triggers at $100,000 in gross sales delivered into Tennessee in the current or prior calendar year. No transaction count threshold.
What to do next
Use the nexus calculator to check exactly which of Georgia and Tennessee you've already triggered. Then read each state's full guide:
Frequently asked questions
- Which state has the lower sales tax nexus threshold, Georgia or Tennessee?
- Both Georgia and Tennessee publish the same economic nexus dollar threshold of $100,000, so a remote seller would reach each state's published threshold at the same level of in-state sales. These are the thresholds published by each state's tax authority as of 2026-05-27; confirm against the official source before registering.
- Do both Georgia and Tennessee have marketplace facilitator laws?
- Yes. Both Georgia and Tennessee have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-05-27.
- Which has the lower sales tax rate, Georgia or Tennessee?
- Georgia has the lower combined state and local sales tax rate at 7.49%, compared with 9.61% in Tennessee. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-27.
- Do I need to register for sales tax in both Georgia and Tennessee?
- It depends on where you cross each state's economic nexus threshold (or have physical presence there). Georgia's published threshold is $100,000 or 200 transactions, and Tennessee's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-05-27.
- When did economic nexus take effect in Georgia and Tennessee?
- Georgia's economic nexus rule took effect on 2020-01-01, and Tennessee's took effect on 2020-10-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.
More sales tax comparisons
Selling into more than two states? Compare Georgia and Tennessee against other major markets for nexus thresholds, rates, and marketplace facilitator rules.
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More Tennessee comparisons
Sources
date_retrieved: Georgia 2026-05-27 · Tennessee 2026-05-27
- Georgia: https://dor.georgia.gov/
- Georgia: https://dor.georgia.gov/taxes/sales-use-tax/out-state-sellers
- Georgia: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- Georgia: https://taxfoundation.org/data/all/state/sales-tax-rates/
- Tennessee: https://www.tn.gov/revenue.html
- Tennessee: https://www.tn.gov/revenue/taxes/sales-and-use-tax/out-of-state-sellers.html
- Tennessee: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- Tennessee: https://taxfoundation.org/data/all/state/sales-tax-rates/