What is the sales tax rate in Chattanooga?
The combined sales tax rate in Chattanooga, Tennessee is 9.25% as of 2026. It is made up of the Tennessee statewide base rate of 7%, plus applicable Hamilton County and local district taxes. Chattanooga sits within Hamilton County, and the rate can vary slightly across ZIP codes because of special district additions (see the ZIP breakdown below).
Sales tax in Tennessee is administered by the Tennessee Department of Revenue, which collects and distributes tax on behalf of the state and its local jurisdictions. The rate applies to most retail sales of tangible personal property delivered within Chattanooga.
Who needs to collect sales tax in Chattanooga, Tennessee?
Any business with sales tax nexus in Tennessee must register, collect, and remit sales tax on taxable sales delivered to Chattanooga. Nexus is established through:
- Physical presence: an office, store, warehouse, employee, or inventory located in Tennessee.
- Economic nexus: exceeding $100,000 in sales to Tennessee customers in the current or prior year.
- Marketplace facilitators: platforms such as Amazon or Etsy collect and remit on behalf of their third-party sellers.
Out-of-state (remote) sellers that cross Tennessee's economic nexus threshold must register with the Tennessee Department of Revenue before continuing to sell into the state.
How do you register for a sales tax permit in Chattanooga?
To collect sales tax in Chattanooga, you must register for a sales tax permit with the Tennessee Department of Revenue. Registration is generally free. You will typically need your EIN or SSN, business entity details, bank account information, and an estimate of your monthly Tennessee sales. Most permits are issued within a few business days of an online application.
How do you charge the right sales tax in Chattanooga?
Sales tax in Chattanooga is charged based on the delivery address. For orders shipped to a Chattanooga address, the combined rate of 9.25% generally applies; for in-store sales, the rate is based on the store's location. Because some ZIP codes within Hamilton County carry additional special-district taxes, always confirm the exact rate for the specific delivery ZIP code. The tables below show the most common Chattanooga ZIP codes and how Chattanooga compares with other cities in Hamilton County and across Tennessee.
