Tennessee

Corporate income tax

Franchise and Excise Tax (two taxes on one return). Franchise tax = 0.25% of Tennessee net worth ($100 minimum); excise tax = 6.5% of Tennessee taxable income. Annual return due the 15th day of the fourth month following the close of the taxpayer's books and records (fiscal year). Quarterly estimated payments due 15th day of the 4th, 6th, and 9th months of the tax year and the 1st month of the following year if combined F&E liability is $5,000 or more in both the current and prior year. Change effective 2024: Public Chapter 950 (2024) eliminated the property (Schedule G) measure of the franchise tax for tax years ending on or after January 1, 2024; net worth is now the sole base. The Tennessee Works Tax Act (2023) also allows a $50,000 net-earnings deduction from the excise tax base and exempts $500,000 of property from the franchise tax minimum measure.

Extension. Seven-month extension (calendar year: to November 15); automatic if the required extension payment is made by the original due date, otherwise file...

Partnerships and S corporations

No PTE election exists or is needed: Tennessee F&E is already an entity-level tax on LLCs, LPs, and S corporations (the federal S election is not recognized for F&E). Exemptions exist for certain entities (e.g., family-owned non-corporate entities, FONCE) on application.

Sales and use tax

Due date. Returns and payments are due the 20th day of the month following the end of the reporting period. Monthly: 20th of the following month. Quarterly: January 20, April 20, July 20, October 20. Annual: January 20. Weekend/holiday due dates roll to the next business day.

Filing frequency. Monthly is the statutory default and applies to most taxpayers. Taxpayers whose sales and use tax liability has averaged $1,000 or less per month for 12 consecutive months are authorized to file monthly or quarterly. Annual filing generally applies only to manufacturers, wholesalers, and marketplace sellers that sell solely through a collecting marketplace facilitator.

Thresholds. Quarterly option: average monthly sales and use tax liability of $1,000 or less over 12 consecutive months (Sales and Use Tax Manual, June 2025).

Prepayments. None published; no accelerated or prepayment schedule for large filers found on official pages.

Notes

The F&E return, the business tax return, and F&E estimates are all filed on TNTAP (electronic filing required). Hall income tax fully repealed for tax periods beginning on or after January 1, 2021, so TN has no individual or pass-through income tax return. Public Chapter 950 (2024) refund window for property-measure franchise tax ran May 15 to November 30, 2024 and is closed.