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.

Georgia vs Tennessee Sales Tax Nexus — Comparison 2026

Updated 2026-05-27

Compare economic nexus thresholds, state and local rates, and filing rules in Georgia and Tennessee.

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:

Georgia overview →Tennessee overview →

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.

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/