Many Nashvillians vaguely recall that they voted in November to increase sales taxes to improve mass transit.
Restaurants, bars and other businesses that pay sales tax have been asking: when does the tax increase take effect? What is the new rate?
You are required to start collecting the new tax starting February 1, 2025. On February 1, the sales tax rate effectively goes up to 9.75% in Nashville. This includes sales in Berry Hill, Goodlettsville and other cities in Davidson County. The rate is 9.75% countywide.
Technically, the tax increase is not a sales tax. But, businesses are required to collect, report and pay the amount on a new schedule on the sales tax return. Tax returns for the higher rate are due on March 20, 2025.
Cue John Mayall’s tune “I Can’t Complain”
The taxman came knockin' on my door,
I said I already gave,
he said he wanted some more
Businesses still have to collect and pay all other taxes, including the 15% liquor by the drink tax.
Click here for more guidance about the new sales tax surcharge from the Department of Revenue.
