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State Tax Rates

The following list is a summary of Tennessee's state tax rates. You can click on the name of the tax to be taken to another page on the Web site that will provide more detailed information about the tax.

Tax
Tax Rates
Filing Frequency
Due Date
Alcoholic Beverage Taxes Alcoholic Beverage Tax: Distilled Spirits - $4.40 per gallon; Wine - $1.21 per gallon
Alcoholic Beverage Enforcement: $.015 per case of alcoholic beverage
Monthly
15th day of the following month
Automobile Rental Surcharge Tax 3% of gross proceeds
Quarterly
15th day of the following month after quarter
Bail Bond Tax $12 per bail bond
Quarterly
25th day fo the following month after quarter
Beer Barrelage Tax $4.29 per 31 gallon barrel
Monthly
20th day of the following month
Beer Wholesale Tax $35.60 per barrel
Monthly
20th day of the following month
Business Tax Business owners should contact their county clerk for tax rates and payment information
Annual
As of January 1, 2014, based on the taxpayer’s fiscal year
Coin-operated Amusement Tax Level one license - $500 (50 machines or less); Level two license - $1,000 (51-100 machines); Level three license - $2,000 (more than 200 machines); Individual machine license - $10
Annual
July 1 - $10 tax due before machine is put in service and annually thereafter
Franchise & Excise Tax Franchise tax - .25% of the greater of net worth or real and tangible property (minimum $100); Excise tax - 6.5% of Tennessee taxable income
Annual
15th day of the 4th month following the close of books and records
Gift Tax Tax repealed effective Jan. 1, 2012 pursuant to Public Chapter 1085 (2012). Taxpayers giving gifts prior to Jan. 1, 2012 are still subject to gift tax rates which are graduated from 5.5% to 16%.
Annual
April 15 of the following year
Gross Receipts Tax: Bottlers 1.9% of gross receipts
Annual
August 1 each year
Gross Receipts Tax: Utilities 3% of the gross receipts from intrastate business. Persons in the business of manufacturing gas, distributing manufactured gas or natural gas pay an amount of 1.5% of the gross receipts
Annual
August 1 each year
Gross Receipts Tax: Vending Tax on gross receipts from machines product sales - 1.5% for non-tobacco sales; 2.5% for tobacco sales
Quarterly
20th of the month following end of calendar quarter
Hall Income Tax 6% of Tennessee taxable income
Annual
April 15 of following year
Inheritance Tax Anything over the exemptions are the following rates: $0 to $40,000 - 5.5%; $40,000 to $240,000 - 6.5%; $240,000 to $440,000 - 7.5%; $440,000 and over - 9.5%
Exemptions
Date of Death Amount
2006 - 2012 $1,000,000
2013 $1,250,000
2014 $2,000,000
2015 $5,000,000
2016 and thereafter no tax
Upon death of decedent
9 months after death; one year extension available
Liquor-by-the-drink Tax 15% of gross receipts
Monthly
15th day of the following month
Litigation Tax Tax on certain court cases, including certain fines & fees
Monthly
15th day of the following month
Marriage License Tax Tax charged on marriage licenses - generally $15 plus $60 additional fee
Monthly
15th day of the following month
Mixing Bar Tax 15% of gross receipts
Monthly
20th day of the following month
Motor Fuel Taxes: Special Tax $0.01 per gallon
Monthly
20th day of the following month
Motor Fuel Taxes: Environmental Assurance Fee $0.004 per gallon
Monthly
20th day of the following month
Motor Fuel Taxes: Gasoline Tax $0.20 per gallon
Monthly
20th day of the following month
Motor Fuel Taxes: Diesel Tax Clear diesel - $0.17 per gallon; Dyed diesel - tax exempt from motor fuel if used off road
Monthly
20th day of the following month
Motor Fuel Taxes: Liquified Gas Tax $0.14 per gallon
Annual
July 25
Motor Fuel Taxes: Compressed Natural Gas Tax $0.13 per gallon
Monthly
25th day of the following month
Motor Fuel Taxes: Export Tax 1/20th of $0.01 per gallon (If the $0.01 Special Tax has been paid, then 19/20th of $0.01 per gallon of the special privilege tax may be credited on a monthly return or alternatively, refunded.)
Monthly
20th day of the following month
Oil Tax Motor oil - $0.02 per quart
Quarterly
25th day of the following month
Professional Privilege Tax $400
Annual
June 1 - Tax paid in advance
Realty Transfer and Mortgage Tax Realty Transfer Tax- $0.37 per $100 of purchase price; Mortgage Tax - $0.115 per $100 of mortgage principal, first $2,000 exempt
Monthly
15th day of the following month
Sales & Use Tax State tax - 5% on food and food ingredients; 7% on all other tangible personal property. State single article - 2.75% on any single item sold in excess of $1,600 but not more than $3,200. Use tax rate - same as sales tax rate. Local tax - see local tax chart
Monthly, Quarterly or Annual
20th day of the following month the tax period
Severance Tax: Coal $1 per ton severed
Monthly
15th day of the following month
Severance Tax: Crude Oil 3% of sales price
Monthly
20th day of the following month
Severance Tax: Minerals up to $0.15 per ton, rate set by county legislative body
Monthly
15th day of the following month
Severance Tax: Natural Gas 3% of sales price
Monthly
20th day of the second month
Television and Telecommunications Tax Cable and Wireless Cable - State tax - $0.00 - $15 - exempt, $15.01 - $27.50 - 8.25%, No local tax on $0.00 - $27.50; State tax - $27.51 and up - 7%; Local tax - on $27.51 and up use applicable local rates - see local tax chart; DBS - 8.25% state rate and no local
Interstate Telecommunications - Interstate Sold to Business - State tax 7.5%, no local tax; Interstate Sold to Residence - State tax 7%, Local tax 1.5%
Intrastate Telecommunications - Sold to Business or Residence - State tax 7%, Local tax 2.5%
Monthly, Quarterly or Annual
20th day of the following month
Tire Tax $1.35 tax on each qualified new tire
Quarterly
25th day of the following month after quarter
Tobacco Taxes Cigarette tax - $.031 per cigarette ($0.62 per pack of 20); Other tobacco products - 6.6% of the wholesale cost
Monthly
15th day of the following month
Unauthorized Substances Tax As prescribed by law
As identified by law enforcement
As encountered