Alcohol regulations in Tennessee

Licences needed

TABC Manufacturer (Distillery) License, Federal TTB Distilled Spirits Plant (DSP) Basic Permit, local municipal/county certificate of compliance / zoning approval.

Authority

Tennessee Alcoholic Beverage Commission (TABC)

Documents

TABC Manufacturer application via RLPS portal, copy of Federal TTB Basic Permit/DSP registration, local government zoning compliance under T.C.A. § 57-2-103, detailed floor plans and premises diagram, criminal background checks and US citizenship declarations for all owners/principals holding 10%+ interest, surety bond.

Fees

$300 non-refundable application fee; $1,000 annual license fee.

Time to obtain

60 to 120 days (requires formal approval by Commissioners at a monthly public TABC commission meeting following premises inspection).

Who can import

Out-of-state manufacturers and importers holding a TABC Nonresident Liquor Seller's Permit may sell spirits to licensed Tennessee wholesale distributors. In-state licensed wholesalers are the sole entities permitted to physically receive imported spirits into the state.

Licences or registrations

Nonresident Liquor Seller's Permit (TABC); Wholesaler License (for in-state receipt); TTB Federal Importer Basic Permit.

Authority

Tennessee Alcoholic Beverage Commission (TABC)

Documents

Nonresident Seller application via the RLPS online portal, copy of Federal TTB Basic Permit, list of corporate officers, citizenship verification, designated Tennessee wholesaler appointment agreement.

Fees

$150 annually if shipping under 100 cases per year; $250 annually for 100 cases or more.

Time to obtain

2 to 4 weeks.

Required

yes

Process

Every brand and label of distilled spirits distributed in Tennessee must be registered by the manufacturer or importer with the Department of Revenue before distribution via the Tennessee Taxpayer Access Point (TNTAP). Wholesalers cannot receive or sell unregistered brands.

Authority

Tennessee Department of Revenue (TDOR)

Documents and samples

Brand Registration Return (Form ALC119) filed via TNTAP, copy of Federal TTB Certificate of Label Approval (COLA), copy of Federal Basic Permit, copies of all bottle labels, copy of TABC Nonresident Seller's Permit, and copy of the Tennessee wholesaler contract listing the exact brand name. Physical samples are not required.

Fees

Initial registration: $250 per brand (prorated monthly). Annual renewal: $250 per brand if 50 or more cases sold in Tennessee during the prior year; $100 per brand if less than 50 cases sold.

Renewal

Annually on or before May 31 for the tax privilege year running June 1 to May 31.

Time to obtain

2 to 3 weeks.

Spirits imported into Tennessee must move through the strict three-tier distribution system directly from licensed nonresident sellers/importers to licensed Tennessee wholesalers. Direct commercial importation by retailers or consumers is prohibited. Common carriers must file monthly shipment reports with the Department of Revenue. Physical excise strip stamps are not used; inventory and gallonage reporting on monthly wholesale tax returns are required.

Spirits entering the United States are subject to federal customs duties under Chapter 22 of the Harmonized Tariff Schedule (HTSUS 2208), ranging from duty-free to rates such as $0.10 to $0.25+ per proof liter depending on classification and country of origin, in addition to Federal Excise Tax. The State of Tennessee does not assess an independent customs tariff.

State gallonage tax of $4.40 per gallon on distilled spirits (T.C.A. § 57-3-301), collected and remitted by wholesale distributors; wholesale case tax of $0.15 per case; state general sales tax of 7.00% plus local sales tax (typically 2.25% to 2.75%, totaling 9.25%–9.75%); 15% Liquor-by-the-Drink (LBD) tax on all on-premise retail drink sales (T.C.A. § 57-4-301); mandatory statutory minimum retail markup of 10% on spirits for package stores.

Privately owned retail package stores licensed by TABC have exclusive rights to sell distilled spirits for off-premise consumption (grocery stores may sell wine and beer, but not spirits). Bars, restaurants, and hotels licensed for Liquor-by-the-Drink sell for on-premise consumption. Retail package store hours: Monday through Saturday 8:00 AM – 11:00 PM; Sunday 10:00 AM – 11:00 PM; closed Christmas Day, Thanksgiving Day, and Easter. Distilleries may sell up to 5 gallons (1/6 barrel) per visitor per visit on-site for off-premise consumption during retail package store hours if local option permits.

Direct-to-consumer (DTC) interstate shipping of distilled spirits is prohibited (DTC shipping permits exist only for wineries; shipping spirits to consumers is a felony). Intrastate on-demand retail delivery is permitted: licensed retail package stores may deliver distilled spirits within permitted retail hours using their own employees or a TABC-licensed third-party delivery service.

Must comply with federal TTB mandatory labeling rules (27 CFR Part 5) including health warning statement (27 U.S.C. 215), brand name, class/type, net contents, and alcohol volume. State law mandates that products labeled as 'Tennessee Whiskey' or 'Tennessee Sour Mash Whiskey' must comply with T.C.A. § 57-2-106.

State rules prohibit advertising targeted at minors, false or misleading claims regarding curative or therapeutic benefits, and tied-house violations (suppliers/wholesalers providing exterior signage, fixtures, or financial incentives to retailers). Package stores are subject to local and state sign size restrictions. Recent statutory updates permit brand name-image-likeness (NIL) licensing trusts for celebrity marketing across tiers.

Adopts federal TTB standards of identity (minimum 40% ABV / 80 proof for whiskey, vodka, rum, gin, brandy). In addition, Tennessee Code Annotated § 57-2-106 establishes a statutory legal definition for 'Tennessee Whiskey': it must be fermented and distilled in Tennessee from a mash of at least 51% corn, distilled to no more than 160 proof, barreled at no more than 125 proof, aged in new charred oak barrels, bottled at no less than 80 proof (40% ABV), and filtered through maple charcoal prior to aging (the 'Lincoln County Process'), with an exemption limited to Prichard's Distillery.

Tennessee defaults to dry status under T.C.A. § 57-3-106; package liquor sales and on-premise liquor sales require affirmative local option referendums. The state consists of wet counties, moist counties (where individual municipalities have voted to allow retail package or on-premise spirits while unincorporated county areas remain dry), and fully dry counties where no package spirits sales are permitted.

• 2026 Public Chapter / HB 1803: Formally incorporated the bottling of distilled spirits into the statutory definition of spirits manufacturing, permitting non-distilling bottling operations to qualify for manufacturer retail and sampling privileges.
• 2026 Public Chapter 603: Amended manufacturer retail provisions to allow Tennessee distilleries and manufacturers to sample and retail spirits, such as tequila, that were not distilled on the immediate premises under specified conditions.
• 2026 Public Chapter 999: Authorized qualified restaurants and hotels on golf courses to serve alcoholic beverages onto courses and entertainment zones, and permitted restricted retail barbershops/salons to serve alcohol without requiring a paid service.
• 2026 enforcement enhancements: TABC expanded common-carrier tracking and carrier-report audits to aggressively penalize unauthorized interstate direct-to-consumer spirits shipments.

Foreign spirits exporters can enter Tennessee's strong spirits market by partnering with an established in-state distributor, obtaining a TABC Nonresident Seller's Permit, and registering brands via TNTAP. Tennessee's high tourism traffic and deep whiskey culture create substantial retail and on-premise demand for premium imported whiskies, agaves, and craft spirits.

• Tennessee Alcoholic Beverage Commission (TABC)
• Tennessee Department of Revenue (TDOR)

1. Tennessee Alcoholic Beverage Commission - Licensing & Rules
2. Tennessee Department of Revenue - Brand Registration & Alcohol Taxes
3. Tennessee Department of Revenue - Tax Rates and Due Dates
4. Tennessee Code Annotated Title 57 (Intoxicating Liquors)