Tennessee Agricultural Tax Exemption for Qualifying Farm Equipment
Save on Eligible Agricultural Equipment and Supplies
Tennessee's Agricultural Sales and Use Tax Exemption may allow qualifying farmers, nursery operators, and timber harvesters to purchase eligible equipment and supplies without paying sales tax. If you operate an agricultural business, understanding this program could help you reduce expenses on qualifying purchases and invest more in your operation.
Krebs Kubota is here to help you explore equipment options and learn more about resources available to eligible agricultural businesses.
Do You Qualify for Agricultural Tax Exemption?
Farmers and other eligible agricultural operators must meet Tennessee's requirements to receive an Agricultural Sales and Use Tax Certificate of Exemption.
If you've heard that owning or farming 16 acres may qualify you for tax-exempt equipment purchases, it's important to verify the specific eligibility requirements before making a purchase. Acreage alone does not guarantee approval. The Tennessee Department of Revenue determines eligibility based on the applicable requirements.
Interested in learning more? Complete the form below, and the Krebs Kubota team can help direct you to the appropriate resources.
What Equipment and Purchases May Qualify?
Tennessee allows approved agricultural operators to purchase certain items without sales tax when those purchases meet the state's exemption requirements.
Qualifying items may include:
- Farm machinery and equipment used primarily in agricultural operations
- Equipment used primarily for timber harvesting
- Eligible fencing and building materials
- Certain replacement parts, repairs, and warranties
- Gasoline and diesel used for agricultural purposes
- Seeds, seedlings, fertilizer, and pesticides
- Livestock and poultry feed, along with qualifying livestock medications
- Other eligible supplies and tangible personal property used in agricultural operations
For many tangible personal property purchases, the item must be used more than 50% of the time in qualifying agricultural operations. Not every product or purchase qualifies, so review the state's guidelines before claiming an exemption.
For a complete explanation, visit the Tennessee Department of Revenue's Agricultural Exemption page.
What Do You Need to Make a Tax-Exempt Purchase?
Before purchasing qualifying equipment or supplies without sales tax, eligible buyers must provide the seller with acceptable documentation confirming their exemption status.
Accepted documentation includes:
- A copy of your Tennessee Agricultural Sales and Use Tax Certificate of Exemption
- A copy of the wallet-sized agricultural exemption card issued by the Tennessee Department of Revenue
- A completed Streamlined Sales and Use Tax Certificate of Exemption that includes your Tennessee agricultural exemption number
Your certificate or other accepted documentation must be provided when making the qualifying purchase. Keep your original records in a safe place, as you may need them again during the certificate's validity period.
How to Apply for Agricultural Tax Exemption
If you haven't received an agricultural exemption certificate, you can apply through the Tennessee Department of Revenue.
To get started:
- Visit the Tennessee Taxpayer Access Point (TNTAP).
- Select View Exemption Links on the TNTAP homepage.
- Choose Apply for Sales & Use Tax Exemption.
- Complete the appropriate application and follow the Department of Revenue's submission instructions.
Applications are reviewed by the state, and applicants must meet the applicable requirements to receive a certificate. Receiving a certificate confirms your approved exemption status.
Keep Your Agricultural Tax Exemption Certificate Current
Tennessee agricultural exemption certificates are valid for four-year periods. The Department of Revenue periodically reissues certificates to current holders who continue to meet the program's requirements.
To maintain your exemption status:
- Make sure your mailing address on file with the state is current.
- Complete any required verification to confirm that you remain eligible.
- Keep your certificate and supporting documentation in a safe place.
- Check the expiration date on your certificate and follow current state renewal instructions.
Once replacement certificates are issued, expired certificates and cards cannot be used for new tax-exempt purchases. If you have changed your business location, you may need to submit a new application with supporting documentation.
For current renewal guidance, visit the Tennessee Department of Revenue.
If you cannot locate your agricultural exemption card or have questions about its status, contact the Tennessee Department of Revenue's Taxpayer Services team for assistance.
Taxpayer Services: (615) 253-0600
You can also visit TNTAP to access available exemption services and review application information.
Learn More About Agricultural Tax Exemption
Are you considering a new tractor, mower, or other equipment for your agricultural operation? Krebs Kubota can help you explore equipment options while you learn more about Tennessee's agricultural tax exemption program.
Complete the form below to request more information, and our team can help point you toward the resources you need.
This page is provided for general informational purposes only and does not constitute tax or legal advice. Agricultural tax exemption eligibility, qualifying purchases, documentation, and renewal requirements are governed by Tennessee law and the Tennessee Department of Revenue. A specific acreage amount does not guarantee eligibility. Please consult the Department of Revenue or a qualified tax professional to confirm your circumstances.