United States · TN
Tennessee state taxes
Income, corporate and sales tax in Tennessee for 2026, on top of US federal tax. Administered by the Tennessee Department of Revenue.
At a glance
- Revenue department
- Tennessee Department of Revenue
- Individual income tax
- None
- Corporate income / franchise tax
- 6.5% (excise tax) plus franchise tax
- State sales tax
- 7% (avg. combined 9.61%)
- LLC annual report / fee
- Confirm with your accountant
- Individual return deadline
- No state return for wages
Corporate income or franchise tax
6.5% (excise tax) plus franchise tax
Applies to C corporations in addition to the 21% federal rate. LLCs taxed as partnerships or disregarded entities usually pay through their owners, but some states charge entity-level taxes or fees.
Sales tax
State rate
7%
Avg. local rate
2.61%
Avg. combined
9.61%
Cities, counties and special districts add their own rates, so the rate at a given address can differ from the average. Remote sellers may need to register once sales into the state pass its economic nexus threshold.
LLC annual report and fee
Filing deadline
Tennessee has no individual income tax return for wages. Business taxes and sales tax returns have their own schedules.
Notable rules
- A franchise or privilege tax may apply to companies in addition to (or instead of) income tax — amounts vary, confirm with your accountant.
Frequently asked questions
Does Tennessee have a state income tax?
Tennessee does not tax wages. Federal income tax still applies.
What is the sales tax rate in Tennessee?
The state rate is 7%. Local taxes add on average 2.61%, for an average combined rate of about 9.61%.
How much is the Tennessee LLC annual report fee?
We have not verified current LLC annual report or franchise fees for this state. Confirm with your accountant or the Secretary of State before you budget.
Income tax as of 2026-01-01; corporate tax as of 2026-01-01; sales tax as of 2026-07-01. Source: Tax Foundation tables compiled from Tennessee statutes and Tennessee Department of Revenue publications. Checked 2026-11-01. General information only.
This tool is general guidance only and may contain mistakes or miss recent changes. It is not tax or accounting advice, and we accept no liability for decisions made on it. Always check with the relevant tax authority or a qualified accountant. See the disclaimer.