Tennessee Liquor License Cost
Fees, license types, and requirements from the Tennessee Alcoholic Beverage Commission (TABC)
How much does a liquor license cost in Tennessee?
| Business Type | Scenario | Total Fee | Period | Permits Required |
|---|---|---|---|---|
| Restaurant | Restaurant with full bar (75-125 seats) | $1,050 | first year | REST_40 |
| Restaurant | Restaurant with wine only | $570 | first year | REST_WINE |
| Bar / Nightclub | Bar or nightclub (as restaurant with 40+ seats) | $950 | first year | REST_40 |
| Brewery / Brewpub | Craft brewery with taproom | $1,300 | first year | BRW |
| Winery | Farm winery with tasting room | $450 | first year | WNR |
| Grocery Store | Grocery store selling wine | $1,650 | first year | RFS |
| Caterer | Catering company with alcohol service | $925 | first year | CAT |
Tennessee's City-by-City Referendum System and the Whiskey Corridor Licensing Heritage
Tennessee's alcohol regulation is administered by the Tennessee Alcoholic Beverage Commission (TABC) for beer, and the Tennessee Alcohol and Gaming Enforcement Division for liquor and wine. The state's dual-agency structure reflects Tennessee's historically complex relationship with alcohol — the state maintained statewide Prohibition until 1939, and its local option system remains robust. Tennessee has approximately 12,000 active alcohol licenses. The state is home to Jack Daniel's, George Dickel, and dozens of craft distilleries along the Tennessee Whiskey Trail, making whiskey production a defining part of the state's alcohol culture.
Regulatory environment
Tennessee has a moderately restrictive licensing environment shaped by its local option system. Each city and county must hold a referendum to allow the sale of liquor by the drink (on-premise). As of 2026, most major cities and tourist destinations have approved liquor-by-the-drink, but many rural areas remain dry for spirits. Beer is regulated separately and more permissively. Tennessee does not impose state-level population quotas. The state requires that all on-premise liquor licensees complete a Responsible Vendor Program. Tennessee's unique 'liquor by the drink' referendum system means licensing availability is fundamentally tied to local political decisions.
License availability
In cities that have approved liquor-by-the-drink, licenses are available through standard application without quota. Processing time is 45-60 days. Tennessee's license types include: on-premises beer, on-premises liquor by the drink (restaurant), retail package store (off-premise), manufacturer (including distillery), and special event. Nashville, Memphis, Knoxville, and Chattanooga all allow full liquor service. Tennessee's craft distillery laws have been modernized to allow tastings and direct sales at distillery locations. The state has over 60 licensed distilleries and 80+ craft breweries as of 2026.
What drives costs
Tennessee's licensing fees are moderate. A liquor-by-the-drink license (on-premise, full liquor) costs $600-$2,400/year depending on municipality size and seating capacity. A beer on-premise permit costs $100-$300/year. Retail package store licenses cost $700-$3,000/year depending on county. Total first-year costs for a full-service restaurant in Nashville run $2,000-$4,000. Tennessee's costs are mid-range for the Southeast — higher than Mississippi, Louisiana, and Arkansas but lower than most Eastern Seaboard states. The whiskey-related tourism economy has driven increased licensing demand, particularly along the distillery corridor between Nashville and Lynchburg.
Application process
Liquor-by-the-drink applications are filed with the Tennessee Alcohol and Gaming Enforcement Division, while beer permits go through the TABC — applicants serving both must navigate two separate agencies. Required documents include a completed application, premises floor plan, menu, proof of food service capability, and corporate filings. All principals undergo TBI (Tennessee Bureau of Investigation) and FBI fingerprint background checks. A certificate of compliance from the local beer board or city council is required before the state will process the application.
Common pitfalls and denial reasons
The most fundamental barrier is geographic: if the city or county has not held a successful liquor-by-the-drink referendum, no license can be issued regardless of the applicant's qualifications. Applications are denied for failure to demonstrate adequate food service — Tennessee requires liquor-by-the-drink establishments to derive a minimum percentage of revenue from food. Proximity to schools and churches triggers denial in many jurisdictions. In Nashville's rapidly developing neighborhoods, zoning conflicts between commercial alcohol service and adjacent residential zones generate frequent objections.
Local quirks worth knowing
Moore County, home of the Jack Daniel's distillery in Lynchburg, was a dry county until 1995 and still prohibits the sale of liquor by the drink — visitors to the world's most famous whiskey distillery can taste but historically could not buy a drink at a local restaurant. A 2023 exception carved out a loophole allowing the distillery itself to serve cocktails. Tennessee's wine-in-grocery-stores law, passed in 2016, was one of the state's most contentious alcohol reforms, and it included a provision prohibiting grocery wine sales on Sunday mornings, Christmas, and Thanksgiving. The Nashville honky-tonk strip on Lower Broadway generates some of the highest per-square-foot alcohol revenue in the country.
Need help getting started? Read our step-by-step licensing guide, or compare Tennessee fees with other states using our comparison tool.
Tennessee License Types
REST_40 Restaurant Liquor by the Drink (40-74 seats) $650/yr
Sale of spirits, wine, and beer for on-premise consumption at restaurants with 40-74 seats.
Minimum 40 seats. Fee tiers: 40-74 seats ($650), 75-125 ($750), 126-175 ($925), 176-225 ($975), 226-275 ($1,100), 276+ ($1,200).
REST_276 Restaurant Liquor by the Drink (276+ seats) $1,200/yr
Sale of spirits, wine, and beer for on-premise consumption at large restaurants with 276 or more seats.
Highest tier for large restaurants and banquet facilities. 276+ seats required.
REST_WINE Restaurant Wine Only (40-125 seats) $270/yr
Sale of wine only for on-premise consumption at restaurants. No spirits or beer.
Wine only, no spirits or beer. Fee tiers: 40-125 seats ($270), 126-175 ($300), 176-225 ($310), 226-275 ($330), 276+ ($350).
HOTEL Hotel/Motel Liquor by the Drink $1,000/yr
Sale of spirits, wine, and beer for on-premise consumption at hotels and motels.
Fee tiers by room count: 20-99 rooms ($1,000), 100-399 rooms ($1,250), 400+ rooms ($1,500).
CLUB Club Liquor by the Drink $500/yr
Sale of spirits, wine, and beer for on-premise consumption at private clubs.
For bona fide private clubs. Members-only establishment.
CAT Caterer Liquor by the Drink $625/yr
Sale and service of spirits, wine, and beer at catered events.
For licensed caterers providing alcohol service at events.
RET Retail Package Store $850/yr
Sale of spirits and wine for off-premise consumption. Traditional liquor store.
Spirits and wine only. Cannot sell beer (beer is licensed separately by city/county).
RFS Retail Food Store $1,250/yr
Sale of wine for off-premise consumption at grocery stores and food retailers.
Wine only in grocery stores (since 2016 law change). Higher application fee ($400) than other licenses.
WNR Winery / Farm Winery $150/yr
Manufacturing of wine with tasting room sales and direct-to-consumer distribution.
Very low annual fee. Farm Winery also $150. Includes tasting room and direct sales.
BRW Brewer of High Gravity Beer $1,000/yr
Manufacturing of high gravity (high ABV) beer with distribution and taproom privileges.
For breweries producing high gravity beer (above 8% ABV). Separate from city/county beer permits.
DST Distiller $1,000/yr
Manufacturing of distilled spirits with distribution and limited direct sales.
Full distiller license. Rectifier license also $1,000.
SOL Special Occasion License See details
Temporary license for sale of alcoholic beverages at a specific event.
$100 per day. Maximum 16 days per calendar year.
FEST Festival License See details
License for large-scale festivals and events serving alcohol.
$1,000 per day for large festival events.
Requirements
General Requirements
- Must be at least 21 years old
- Background check required for all applicants
- Application fee of $300 for most license types ($400 for Retail Food Store)
- Must comply with local zoning ordinances
- Server permit required for all employees serving alcohol
- Municipality must have approved sale of liquor by the drink via local referendum
Notable Restrictions
- Many Tennessee municipalities are dry — liquor by the drink requires local referendum approval
- Restaurant liquor licenses are tiered by seating capacity (40-seat minimum)
- Wine-only restaurant licenses available as a lower-cost alternative
- Limited Service Restaurant licenses cost significantly more ($2,000-$5,000) based on food sales percentage
- Package stores (retail liquor) cannot sell beer — only spirits and wine
- Beer is sold separately through city/county beer permits, not through TABC
- Grocery stores can sell wine since 2016 but require a Retail Food Store license
Frequently Asked Questions
Are there dry counties in Tennessee?
Yes — a significant portion of Tennessee remains dry or partially dry. Liquor by the drink requires approval by local referendum in each municipality. Even if a county votes wet, individual cities within that county may remain dry. Roughly half of Tennessee's 95 counties are fully or partially dry for spirits sales as of 2025. Memphis, Nashville, Chattanooga, and Knoxville are all wet. If you're opening a bar or restaurant in a rural county, confirm with the county election commission whether a liquor-by-the-drink referendum has passed. If not, you cannot get a TABC restaurant license there regardless of state approval.
Can I sell alcohol on Sundays in Tennessee?
Sunday alcohol sales require a separate local referendum, independent of the general wet/dry vote. Many wet cities have approved Sunday sales — Nashville, Memphis, and Knoxville all permit it. Some jurisdictions only allow Sunday sales after noon and restrict them to restaurants with food service. Package stores (retail liquor) typically have different Sunday hours than on-premise licensees. Always confirm Sunday rules with the local city or county before applying, as they vary even within the same county.
Can I transfer a liquor license in Tennessee?
Tennessee does not have transferable quota licenses — there is no secondary market for TABC licenses. Licenses are tied to a specific location and applicant. If you buy an existing licensed business, you must apply for a new license in your own name rather than transfer the old one. The application process is identical to a new applicant: background check, application fee, and TABC approval. The advantage of acquiring an existing licensed business is operational continuity during the re-application period, not any transfer of license value.
What's the cheapest type of liquor license in Tennessee?
The cheapest TABC license is the Winery or Farm Winery license at $150/year, but that's only for wine producers. For food service, the Restaurant Wine Only license starts at $270/year for 40-125 seats ($300 application fee in year one) — the lowest-cost path if your concept doesn't need spirits. A full Restaurant Liquor by the Drink license starts at $650/year for 40-74 seats. Keep in mind that beer is licensed separately by local governments, not through TABC, so you'll need a city or county beer permit on top of any TABC license.
How much is a liquor license for a food truck in Tennessee?
TABC does not issue restaurant liquor licenses to mobile food trucks because on-premise consumption licenses require a fixed licensed premises with a permanent address. Food trucks can use the Special Occasion License ($100/day, maximum 16 days/year) to serve alcohol at specific qualifying events. For routine mobile operations, a Caterer's License ($625/year) covers alcohol service at catered private events. Routine walk-up alcohol sales from a food truck on public streets are not permitted under current Tennessee law. If beer is your focus, check with the local city or county — beer is locally licensed and some jurisdictions have made provisions for mobile vendors.
Sources
Data sourced from the Tennessee Alcoholic Beverage Commission (TABC). Last verified 2026-03-26.