Jurisdiction detail

Tennessee tax guide

A seeded subnational profile for Tennessee, built on the schema from the world-class expansion plan.

Country

United States

Tax year

2026

Authority

Tennessee Department of Revenue

Overview

Tennessee has no individual income tax after the Hall tax repeal. The state imposes both an excise tax on net earnings and a franchise tax on net worth for business entities.

Excise tax and franchise tax are separate but use the same return.Hall income tax on investment income was fully repealed in 2021.No PTET election needed because no individual income tax.

Individual income tax

This jurisdiction does not impose its own individual income tax.

Type: none

Business tax

Excise tax at 6.5 percent on net earnings, separate from franchise tax on net worth.

Reference rate: 6.5%

Sales or indirect tax

Economic nexus applies for remote sellers.

Base rate: 7%

Local rates add up to 2.75 percent; combined rates among the highest in the nation.

Deadlines and forms

Excise and franchise tax returns generally April 15.

Official authority

Visit Tennessee Department of Revenue

Primary sources

Tennessee Department of RevenueVerified 2026-05-20

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.