Running a service business in Tennessee

IntelliDrive OS is point-of-sale, quoting, inventory and customer software for service businesses such as locksmiths, plumbers, HVAC companies and electricians. This page collects the tax and licensing facts for Tennessee that those businesses ask about, each linked to the official source we read, and shows how IntelliDrive OS fits them.

Last checked October 4, 2026

What is the sales tax in Tennessee?

State rate: 7%

The state sales tax rate in Tennessee is 7%.

Local tax rates are set by counties and some incorporated cities and cannot exceed 2.75%, which puts the general combined maximum at 9.75%. Davidson County added a 0.5% local transit surcharge effective February 1, 2025.

Repair, installation and labor

Tennessee's Department of Revenue says repair of tangible personal property, and installing property that remains tangible personal property after installation, are taxable services. A charge for labor performed on real property, such as houses, built-in appliances and HVAC units, is not subject to sales tax.

Who licenses locksmiths and the trades in Tennessee?

From each agency's own page. Check with your city or county for any local license as well.

Locksmiths: no state license

Tennessee's General Assembly repealed the Locksmith Licensing Act of 2006 in 2021 (Public Chapter 572). That act had required a state license for any person or company providing locksmithing services.

Plumbing: Tennessee Board for Licensing Contractors (Department of Commerce and Insurance)

The Board for Licensing Contractors licenses contractors and limited licensed plumbers (LLP) under Tennessee Code Annotated, Title 62, Chapter 6.

Electrical: Tennessee Board for Licensing Contractors (Department of Commerce and Insurance)

The Board for Licensing Contractors licenses contractors and limited licensed electricians (LLE) under Tennessee Code Annotated, Title 62, Chapter 6.

More facts for Tennessee service businesses

The state single article rate is 2.75% on any single item sold for a price in excess of $1,600 but not more than $3,200.

Sales tax returns are due on the 20th day of the month following a monthly reporting period or a quarter, and annual returns are due January 20.

How does IntelliDrive OS fit Tennessee’s tax and paperwork?

What the software does today, nothing more. It does not file your returns or give tax advice.

One tax rate per shop

Add your rates under Settings → Tax Rates, then choose each shop’s default rate under Settings → Outlets, so every shop charges its own local rate.

All features

Records kept digitally

Invoices, receipts, signatures and photos are kept digitally for your records, and you can send a receipt to the customer by email or text.

Payment-link evidence

Payment links through your own account

Text or email a payment link through your own QuickBooks Payments, Square or Stripe account. On a payment-link sale the record keeps the customer’s signature, the terms they accepted, IP address and device, photos, and location when their browser shares it.

Payment processing

Stock by shop and van

Each shop, and each van you set up as its own location, keeps its own stock, with reorder points, counts and exact transfers between locations.

Inventory

Your team, hours and commission

Time clock, timesheets, pay rates and per-technician commission reporting, with role permissions and staff limited to their own shop.

Workforce

QuickBooks Online, when you choose

Push sales and payments from IntelliDrive OS to QuickBooks Online. It is a one-way push that you start yourself.

QuickBooks integration

Scheduling and dispatch (add-on)

Scheduling, dispatch, live GPS and ETA texts come with the GetTimePad add-on at $199/month. It is not part of the $79 plan.

Scheduling

Tennessee questions, answered

What is the sales tax rate in Tennessee?

Tennessee’s state sales tax rate is 7%. Local tax rates are set by counties and some incorporated cities and cannot exceed 2.75%, which puts the general combined maximum at 9.75%. Davidson County added a 0.5% local transit surcharge effective February 1, 2025. Source: Tennessee Department of Revenue.

What does Tennessee’s tax guidance say about repair and labor charges?

Tennessee's Department of Revenue says repair of tangible personal property, and installing property that remains tangible personal property after installation, are taxable services. A charge for labor performed on real property, such as houses, built-in appliances and HVAC units, is not subject to sales tax. Source: Tennessee Department of Revenue.

Do locksmiths need a state license in Tennessee?

Not at the state level: Tennessee does not issue a state locksmith license, according to the Tennessee General Assembly and the Tennessee General Assembly Fiscal Review Committee. Tennessee's General Assembly repealed the Locksmith Licensing Act of 2006 in 2021 (Public Chapter 572). That act had required a state license for any person or company providing locksmithing services.

Who licenses plumbers and electricians in Tennessee?

Plumbing: the Tennessee Board for Licensing Contractors (Department of Commerce and Insurance). Electrical: the Tennessee Board for Licensing Contractors (Department of Commerce and Insurance). Source: Tennessee Department of Commerce and Insurance.

Can I set the Tennessee sales tax rate in IntelliDrive OS?

Yes. Add the rate under Settings → Tax Rates and choose it as the shop’s default under Settings → Outlets. IntelliDrive OS uses one tax rate per shop, so a business with shops in different tax areas sets a rate for each shop.

How much does IntelliDrive OS cost in Tennessee?

$79/month per business, billed monthly, the same everywhere in the US. New accounts have unlimited users. The first 30 days are free; a card is required at signup and the first charge is on day 31.

These facts summarize the official pages linked next to each one. Rates and rules change, so check the source before you rely on a fact. This is not legal or tax advice.

Last checked October 4, 2026.

Facts for other states

Run your Tennessee service business on IntelliDrive OS

$79/month per business, billed monthly, with unlimited users.

The first 30 days are free. A card is required at signup and the first charge is on day 31; cancel in Settings → Billing before then and you pay nothing.