Get Tennessee Department Of Revenue Business Tax ...

Income from your business will be distributed to you as the sole proprietor, and you will pay federal tax on that income. However, because Tennessee has no personal income tax, you will not owe tax to the state on your business's income. Sole proprietors are not subject to the Tennessee franchise and excise taxes.

With a few exceptions, all businesses that sell goods or services must pay the state business tax. This includes businesses with a physical location in the state as well as out-of-state businesses performing certain activities in the state.

Tennessee does not have an individual income tax. Tennessee has a flat 6.50 percent corporate income tax rate and levies a gross receipts tax. Tennessee has a 7.00 percent state sales tax rate, a max local sales tax rate of 2.75 percent, and an average combined state and local sales tax rate of 9.55 percent.

If you're a local business, then you must charge the tax rate ing to your location in Tennessee. So that would be the state-wide 7%, plus any local taxes if necessary. If you have more than one location in Tennessee, then charge the sales tax rate of where the sale occurred.

All sales and use tax returns and associated payments must be submitted electronically. Sales and use tax, television and telecommunications sales tax, and consumer use tax can be filed and paid on the Tennessee Taxpayer Access Point (TNTAP). A TNTAP logon should be created to file this tax.

With a few exceptions, all businesses that sell goods or services must pay the state business tax. This includes businesses with a physical location in the state as well as out-of-state businesses performing certain activities in the state.

The general state tax rate is 7%. The local tax rate varies by county and/or city. Please click on the links to the left for more information about tax rates, registration and filing.

Tennessee has a flat 6.50 percent corporate income tax rate and levies a gross receipts tax. Tennessee has a 7.00 percent state sales tax rate, a max local sales tax rate of 2.75 percent, and an average combined state and local sales tax rate of 9.55 percent.