Tennessee
Taxes and business formation • USA 2025–2026
TL;DR
Tennessee at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Tennessee.
| Parameter | Value |
|---|---|
| Personal income tax | None |
| LLC formation fee | $300.00 |
| LLC annual report fee | $300 (minimum) |
| LLC annual report deadline | April 1 |
| LLC dissolution fee | $20.00 |
| Corporation formation fee | $100.00 |
| Corporation annual report fee | $20.00 (minimum) |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
LLC in Tennessee
Corporation in Tennessee
Tax system of Tennessee
Income Tax
Tennessee has no tax on earned income, which is one of the state's key advantages. Since 2021, even the tax on dividends and interest has been abolished.
Sales Tax
Tennessee's base sales tax rate is 7%. In some areas, local taxes can bring this figure up to 9.75%. Almost all goods and certain services are taxed. We provide services for obtaining a Sales Tax Certificate, and for preparing and filing the Sales and Use Tax Return. We advise business owners on registration, calculation, and reporting.
Property Tax
The average property tax rate in Tennessee is 0.64% of a home's value, which is a moderate figure.
Business Taxes
For corporations in Tennessee, a Corporate Excise Tax of 6.5% on net profit applies. The Franchise Tax is 0.25% of either Net Worth or the Book Value of Real and Tangible Property, whichever is greater. Business Tax on gross receipts: the rate depends on the type of business and ranges from 0.1% to 0.5%, with a minimum of $22.
Excise Taxes
Tennessee levies excise taxes on items such as alcohol, tobacco, and fuel.
Frequently asked questions
Does Tennessee have a personal income tax?+
No. Tennessee does not levy a personal income tax on wages or self-employment income. You still file a federal Form 1040 with the IRS every year, and you may owe tax to another state if you earned income there.
How much does it cost to register an LLC in Tennessee?+
The state filing fee in Tennessee is $300.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Tennessee LLC?+
The Tennessee annual report fee is $300 (minimum), due April 1. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Tennessee to open an LLC there?+
No. You do not need to live in Tennessee — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Tennessee state return remotely?+
Yes. FinTaxes prepares and e-files federal and Tennessee state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
Starting a business in Tennessee?
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