Tennessee Vending Machine Permits and Licenses

Vending permits and licenses by state · Tennessee

Tennessee has no state license for vending machines. It repealed its vending license and machine tax stickers in 2002. Most operators need one free sales and use tax registration from the Department of Revenue, plus a local business license from the county clerk once sales top $3,000 a year. Every vending sale pays the state rate, 7% or 4% on food, plus a flat 2.25% local rate no matter where the machine sits. Below is each requirement and the law it comes from.

Tennessee vending requirements at a glance

FreeSales tax registration

7%State sales tax

4%State rate on food

2.25%Local rate on every vending sale

Required

Sales tax registration

Register with the Department of Revenue through TNTAP if you sell anything. Free.

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Recommended

Resale certificate

Buy inventory tax-free with the Tennessee Certificate of Resale. You collect the tax when it sells.

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Applies

Tax on vending sales

7% state rate, or 4% on food, plus a flat 2.25% local rate on every machine.

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Not required

State food permit

State food rules leave vending machines out. Check locally before you stock fresh food.

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Not required

Trading card license

Pokémon cards need only the sales tax registration.

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Not required

Vending license or decal

Repealed in 2002. Decals now apply only to 25-cent machines run for a charity.

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Depends

Business tax license

County license once sales top $3,000 a year. A yearly return starts at $100,000.

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Depends

Franchise and excise tax

LLCs and corporations owe at least $100 a year in franchise tax.

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Last reviewed: October 28, 2026  ·  Sources: Tennessee Department of Revenue, Rules of the Tennessee Department of Revenue, Tennessee Department of Agriculture, Tennessee Department of Health, Tennessee Secretary of State, federal regulations (full list at the bottom)  ·  General information, not legal advice.

• Requirements and laws
• Do you need a license?
• Sales tax
• Food and drinks
• Cards, mystery and toys
• Federal rules
• Business setup
• FAQ
• Sources

Tennessee requirements and the laws behind them

Do you need a license to run a vending machine in Tennessee?

Not a vending license. Tennessee used to license vending machines and sell vending tax stickers, but it repealed both in 2002 when it moved vending sales into the regular sales tax. The Department of Revenue's notice on the change says "there will no longer be a requirement for a vending machine license or the purchase of vending machine tax stickers." We found no other state license for machines that sell snacks, drinks, cards or merchandise.

What you do need: a sales and use tax registration, and a county business license once sales top $3,000 a year. Check zoning with the city where each machine will sit.

Decals are only for 25-cent charity machines

One narrow program still uses decals. If a machine is run for a charitable nonprofit, sells items worth 25 cents or less, and takes only a fixed price it cannot change or make change for, its owner can pay a 1.5% gross receipts tax instead of sales tax (Tenn. Code Ann. 67-4-506; gross receipts tax rates).

• Registration: Form GRO 219, $2 per charity.
• Decals: $1 for each machine, fixed to the machine and showing the owner and the charity (Important Notice 03-14).
• Any other machine: regular sales tax (Department of Revenue).

Sales tax on vending sales in Tennessee

Sales and use tax registration

Anyone who sells tangible personal property in Tennessee has to register for sales and use tax, even if what they sell is exempt (Revenue Help SUT-10). Sales of merchandise through vending machines are subject to sales tax (Tenn. Code Ann. 67-6-202(c); Revenue Help SUT-130).

• Cost: free. "There is no charge for registering a business for a sales and use tax account."
• Where to apply: online through the Tennessee Taxpayer Access Point (TNTAP). The Department sends a Certificate of Registration to display at your business location, and retailers also receive a Tennessee Certificate of Resale.
• One return for every machine: since 2017 you do not need a separate vending-only account. Vending sales go on the same sales and use tax return as your other sales (Important Notice 17-17).

You collect the tax, so buy your inventory tax-free

The sales tax on vending sales is yours to collect and send to the state. That is why you should not also pay sales tax when you buy the inventory.

• Tennessee Sales and Use Tax Certificate of Resale: the Department issues it automatically when a retailer registers, so there is no blank form to fill out. Print it from your TNTAP account and give a copy to each supplier (Revenue Help SUT-34). See the Department's resale certificate page.
• Blanket use: the Sales and Use Tax Manual calls it the Tennessee Blanket Certificate of Resale. A registered dealer does not need a new certificate for each purchase, as long as the business has not changed and the items are the kind it usually buys to resell (Rule 1320-05-01-.68(1)).
• Multistate certificates: Tennessee accepts two, for resale only: the Streamlined Sales Tax Certificate of Exemption (PDF) and the Multistate Tax Commission's Uniform Sales and Use Tax Certificate. They are the only multistate forms it takes, and they must carry your Tennessee sales tax number, or another state's number if you are an out-of-state dealer. On the Streamlined form, mark Resale as the reason (Revenue Help SUT-31).

The certificate covers products you resell, not machines, supplies or anything else you use in the business. Inventory you pull for promotions, gifts or your own use must be reported on your sales tax return, with the tax paid (Revenue Help SUT-32; Tenn. Code Ann. 67-6-203).

Sales tax rates for vending

Tennessee has two state rates. The general rate is 7%, and food and food ingredients are taxed at 4%. Local rates normally depend on where the sale happens and cannot exceed 2.75% (Department of Revenue), so a sale at the general rate tops out at 9.75%.

Vending machines are the exception. All vending sales, food and non-food, pay a flat 2.25% local rate, wherever the machine sits (Tenn. Code Ann. 67-6-702(g); Sales and Use Tax Manual). That makes the total 9.25% on cards, toys, candy and other merchandise, and 6.25% on food. You report vending sales and the 2.25% local tax on Schedule C, Lines 13 and 14, so you do not split them by city or county (SUT-130).

You can include tax in your prices, as long as you post a sign on the machine saying the prices include sales tax (Notice 17-17; Rule 1320-05-01-.90).

What is taxed at which rate

The 4% rate covers "food and food ingredients," but that definition leaves out candy, prepared food, dietary supplements, alcohol and tobacco, which stay at 7% (Important Notice 17-20). For a typical vending machine:

• 4% state rate: chips, pretzels, popcorn, salted nuts, trail mix, cookies, pastries, soft drinks, bottled water (including flavored and sweetened), fruit juice, coffee and tea.
• 7% state rate: candy, including chewing gum, breath mints and chocolate covered nuts (Important Notice 17-22).
• The flour test: anything with flour on the ingredient list is not candy, and neither is anything the label says needs refrigeration. Both count as food at 4%.
• Prepared food: food the seller mixes, heats or sells with eating utensils is taxed at 7%.
• Merchandise: trading cards, sealed Pokémon product, mystery items, toys and general merchandise are taxed at 7%.

Micro markets have separate rules, including one registration per local jurisdiction (Sales and Use Tax Manual). Confirm with the Department how to report them.

Food and drinks: food permits and vending machines in Tennessee

Tennessee splits food licensing between two agencies. The Department of Agriculture licenses retail food stores, and the Department of Health handles restaurants and other food service establishments (Department of Agriculture). The definitions in the Agriculture department's retail food rule leave vending machines out of both categories (Rule 0080-04-09-.01):

• A "retail food store" does not include "food and beverage vending machines."
• A "food service establishment" does not include "the location of vending machines."

The same rule also leaves out establishments that handle only prepackaged food that does not need time or temperature control for safety. We found no state food permit for vending machines.

That does not settle fresh food. Both state food rules set time and temperature limits for refrigerated, ready-to-eat food that is prepared in a food establishment and sold through a vending machine. Five counties, Davidson, Hamilton, Knox, Madison and Shelby, run their own food permitting and enforcement (Department of Health). Before you stock sandwiches, salads, milk or anything that has to stay cold, ask the local health department what it expects.

Tennessee rules for trading cards, mystery products and toys

Pokémon and other trading cards

Tennessee has no special license for selling trading cards. They are taxable merchandise at 7% plus the 2.25% vending rate, so the sales tax registration covers you. The legal questions with card machines are about intellectual property, not state permits: stock authentic product, and keep Pokémon characters and logos off the machine itself. Our guide to the legal side of trading card vending machines covers both, and the Pokémon vending machine guide covers the business.

Mystery products and toys

Blind boxes, mystery bags and capsule toys are merchandise, taxed at 7% plus the 2.25% vending rate like cards and toys. Your sales tax registration covers them. We found no special Tennessee license for selling them from a machine. See our mystery vending machines page.

Claw and crane machines

Tennessee taxes owners of coin-operated amusement machines, which the Department describes as machines that provide music or entertainment and "do not vend any merchandise" (Coin-Operated Amusement Tax). The tax is $500 a year for 50 or fewer machines, plus $10 for each machine (rates). Claw and crane machines hand out merchandise as part of a game, and the guidance does not say which side they fall on. Confirm with the Department before you place one.

Federal rules that apply in Tennessee and every other state

ADA reach ranges

Where vending machines are provided, at least one of each type has to meet the operable parts rules in the 2010 ADA Standards (sections 228.1 and 309). The parts a customer operates, like the screen, card reader and pickup door, have to sit within reach: between 15 and 48 inches above the floor for an unobstructed reach (section 308).

Calorie labeling for food

If you own or operate 20 or more vending machines that sell food, federal rules require calorie information for any item whose Nutrition Facts label the buyer cannot see before buying (21 CFR 101.8). In glass-front machines, packages that show calories on the front in large enough type can meet the rule.

Schools

Machines that sell food to students during the school day may stock only items that meet the USDA's Smart Snacks nutrition standards. The school day runs from midnight until 30 minutes after the official school day ends (7 CFR 210.11).

Setting up the business in Tennessee

• Business tax: Tennessee's business tax has a state part and a city part. Licenses come from the county clerk and, in cities that levy the tax, from the city (Department of Revenue). The Business Tax Manual says anyone selling through coin-operated vending machines must register with their city and county and pay business tax.
• Thresholds: no license is required at $3,000 or less in yearly sales. From more than $3,000 to under $100,000, you need a $15 minimal activity license each year and file no return. At $100,000 or more, you need a $15 standard license, file a yearly return with the Department and pay at least $22 (Revenue Help BUS-13). For vending operators, only the principal place of business pays the minimum tax.
• Machines in other counties: the manual says businesses that extend into other counties or cities without an office, headquarters or other place of business generally do not have to register there. It does not say how that applies to machine placements, so ask the county clerk.
• Entity: form an LLC with the Tennessee Secretary of State. Articles of Organization (Form SS-4270) cost $50 per member, with a $300 minimum and a $3,000 maximum. The annual report costs at least $300.
• Franchise and excise tax: LLCs, corporations and other limited liability entities file with the Department of Revenue. The franchise tax is 0.25% of net worth, with a $100 minimum due even if the company is inactive, and the excise tax is 6.5% of net earnings (Department of Revenue). A single-member LLC owned by a person still files; only one owned by a corporation can be disregarded (Revenue Help F&E-3).

Tennessee vending permit and license FAQ

Do I need a license to put a vending machine in Tennessee?

Tennessee has no state vending machine license; it repealed its vending license and tax stickers in 2002. You need a free sales and use tax registration from the Department of Revenue, and a county business license, plus a city license where the city has a business tax, once your sales top $3,000 a year.

Do I need a food permit for a snack vending machine in Tennessee?

Not from the state. Tennessee's food rules exclude food and beverage vending machines from retail food stores and the location of vending machines from food service establishments (Rule 0080-04-09-.01). If you plan to sell fresh food that needs refrigeration, check with the local health department first.

Is vending machine food taxed in Tennessee?

Yes. Food and food ingredients, including chips, soft drinks and bottled water, are taxed at the 4% state rate, and candy and gum at 7%. Every vending sale also pays a flat 2.25% local rate, wherever the machine sits.

Do I need a license to sell Pokémon cards from a vending machine in Tennessee?

No special license. Trading cards are taxable merchandise at 7% plus the 2.25% vending rate, so your sales tax registration covers you. Stock authentic product and keep Pokémon characters and logos off the machine itself.

How much does a Tennessee sales tax registration cost?

Nothing. The Department of Revenue does not charge to register a business for a sales and use tax account. You register online through TNTAP, and retailers receive a Tennessee Certificate of Resale when they register.

Do I pay sales tax on inventory I buy for my vending machines in Tennessee?

Not if you buy it to resell. Give each supplier a copy of your Tennessee Certificate of Resale from TNTAP, or a Streamlined or MTC multistate certificate with your Tennessee number. Inventory you take for your own use or give away must be reported and taxed on your return.

Which local sales tax rate applies to my vending machines in Tennessee?

A flat 2.25% on all vending sales, food and non-food, no matter which city or county the machine is in. You report vending sales and the 2.25% local tax on Schedule C of your regular sales tax return.

Sources

1. Department of Revenue, Important Notice 17-17, Filing Changes for Vending Sales
2. Revenue Help SUT-130, Sales of Merchandise through Vending Machines, SUT-10, Registering for an Account and SUT-13, Sales and Use Tax Rates
3. Department of Revenue, Sales and Use Tax Manual (August 2026)
4. Department of Revenue, Due Dates and Tax Rates
5. Important Notice 17-07, State Tax Rate Change on Food, 17-20, Sales Tax on Food and Food Ingredients and 17-22, Sales Tax on Candy
6. Department of Revenue, Resale Certificate and Tennessee Taxpayer Access Point (TNTAP)
7. Revenue Help SUT-31, Resale Certificate Overview, SUT-32, Appropriate Use of a Resale Certificate and SUT-34, Obtaining a Copy of a Resale Certificate
8. Department of Revenue, Streamlined Sales Tax and Streamlined Sales and Use Tax Certificate of Exemption
9. Revenue Rules 1320-05-01-.68 and .90
10. Department of Revenue, 2002 Vending Machine Tax Change
11. Important Notice 03-14, Form GRO 219, Gross Receipts Taxes and Gross Receipts Tax Rates
12. Agriculture Rule 0080-04-09, Retail Food Store Sanitation and Department of Agriculture, Food Safety
13. Department of Health, Environmental Health
14. Department of Revenue, Coin-Operated Amusement Tax and Due Dates and Tax Rates
15. Department of Revenue, Business Tax, Business Tax Manual (June 2026) and Revenue Help BUS-13, Business Licenses
16. Department of Revenue, Franchise and Excise Tax, FT-1, ET-1 and F&E-3
17. Secretary of State, Business Forms and Fees, Form SS-4270, Articles of Organization (LLC) and Business Services FAQs
18. Tennessee Code Annotated, official public access (LexisNexis)
19. 2010 ADA Standards for Accessible Design and U.S. Access Board guide to operable parts
20. 21 CFR 101.8, calorie labeling of food in vending machines
21. 7 CFR 210.11, competitive food standards (Smart Snacks)