Tax Rates and Interest Rate

Alcoholic Beverage Taxes

Tax Rates

Alcoholic Beverage Tax:  Distilled Spirits - $4.40 per gallon

Alcoholic Beverage Tax:  Wine - $1.21 per gallon

Alcoholic Beverage Enforcement:  $.15 per case of alcoholic beverage

Filing Frequency

Monthly

Due Date

15th day of the following month

Automobile Rental Surcharge Tax

Tax Rate

3% of gross proceeds

Filing Frequency

Quarterly

Due Date

15th day of the following month after quarter

Bail Bond Tax

Tax Rate

$12 per bail bond

Filing Frequency

Quarterly

Due Date

25th day of the following month after quarter

Beer Taxes

Tax Rates

Beer Barrelage Tax: $4.29 per 31 gallon barrel

Beer Wholesale Tax: $35.60 per barrel

Filing Frequency

Monthly

Due Date

20 day of the following month

Business Tax

Tax Rates

The business tax rates vary, depending on your classification and whether you are a retailer or a wholesaler. However, every taxpayer must pay at least a minimum tax of $22.

Filing Frequency

Annual

Due Date

Your business tax return is due on the 15th day of the fourth month following the end of your fiscal year. For example, if your fiscal year coincides with the calendar year, then your return will be due on April 15.

Coin-operated Amusement Tax

Tax Rates

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

Filing Frequency

Annual

Due Date

July1 - $10 tax due before machine is put in service and annually thereafter

Franchise & Excise Tax

Tax Rates

Franchise Tax - .25% of the greater net worth or real and tangible property (minimum $100)

Excise Tax - 6.5% of Tennessee taxable income

Filing Frequency

Annual

Due Date

15 day of the 4th month following the close of books and records

Gift Tax

Tax Rates

Tax repealed Jan. 1, 2013. Gifts given prior to Jan. 1, 2012 are still subject to the gift tax rates which are graduated from 5.5% to 16%.

Filing Frequency

Annual

Due Date

April 15 of the following year

Gross Receipts Taxes

Tax Rates

Bottlers: 1.9% of gross receipts

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.

Vending: Tax on gross receipts from machines product sales - 1.5% for non-tobacco sales; 2.5% for tobacco sales.

Filing Frequency

Bottler: Annual

Utilities: Annual

Vending: Quarterly

Due Date

Bottlers: August 1 each year

Utilities: August 1 each year

Vending: 20th of the month following end of the calendar quarter

Hall Income Tax

Tax Rates

The Hall Income Tax will be eliminated by 2022. The  schedule for the phase out is as follows for the tax rate:

*4% of taxable income for tax years beginning January 1, 2017
*3% of taxable income for tax years beginning January 1, 2018
*2% of taxable income for tax years beginning January 1, 2019
*1% of taxable income for tax years beginning January 1, 2020
*Repeal beginning January 1, 2021

Filing Frequency

Annual

Due Date

April 15 of the following year

Inheritance Tax

Tax Rates

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 after no tax

Filing Frequency

Upon death of decedent

Due Date

Nine months after death; one year extension available

Interest Rate

The interest rate on all taxes collected or administered by the Department of Revenue, effective July 1, 2017 through June 30, 2018, is 8%. The interest rate for installment payments is 11%.

 

The interest rates effective for July 1, 2016 through June 30, 2017 are 7.5% and 10.5%, respectively.

 

Liquor-by-the-drink Tax

Tax Rates

15% of gross receipts

Filing Frequency

Monthly

Due Date

15th day of the following month

Litigation Tax

Tax Rates

Tax on certain court cases, including fines and fees

Filing Frequency

Monthly

Due Date

15th day of the following month

Marriage License Tax

Tax Rates

Tax charged on marriage licenses - generally $15 plus $60 additional fee

Filing Frequency

Monthly

Due Date

15th day of the following month

Mixing Bar Tax

Tax Rates

15% of gross receipts

Filing Frequency

Monthly

Due Date

20th day of the following month

Motor Fuel Taxes

Tax Rates

Special Tax: $0.01 per gallon

Environmental Assurance Fee: $0.004 per gallon

Gas Tax

The state’s tax on gasoline will increase by six cents over the next three years.

*From $0.20 to $0.24 from July 1, 2017 to June 30, 2018
*From $0.24 to $0.25 from July 1, 2018 to June 30, 2019
*From $0.25 to $0.26 from July 1, 2019 and after

Diesel Tax

The state’s tax on diesel fuel will increase by 10 cents over the next three years.

*From $0.17 to $0.21 from July 1, 2017 to June 30, 2018
*From $0.21 to $0.24 from July 1, 2018 to June 30, 2019
*From $0.24 to $0.27 from July 1, 2019 and after

Compressed Natural Gas and Liquified Gas

Compressed natural gas tax will increase by eight cents over the next three years.

*From $0.13 to $0.16 from July 1, 2017 to June 30, 2018
*From $0.16 to $0.18 from July 1, 2018 to June 30, 2019
*From $0.18 to $0.21 from July 1, 2019 and after

Liquified gas tax will increase by eight cents over the next three years.

*From $0.14 to $0.17 from July 1, 2017 to June 30, 2018
*From $0.17 to $0.19 from July 1, 2018 to June 30, 2019
*From $0.19 to $0.22 from July 1, 2019 and after

Export Tax: 1/20th of $0.01 per gallon (if the $0.01 special tax has been paid, then 1/19th of the $0.01 per gallon of the special privilege tax may be credited on a monthly return or alternatively, refunded)

Filing Frequency

Special Tax: Monthly

Environmental Assurance Fee: Monthly

Gasoline Tax: Monthly

Diesel Tax: Monthly

Liquified Gas Tax: Annual

Compressed Natural Gas Tax: Monthly

Export Tax: Monthly

Due Date

Special Tax: 20th day of the following month

Environmental Assurance Fee: 20th day of the following month

Gasoline Tax: 20th day of the following month

Diesel Tax: 20th day of the following month

Liquified Gas Tax: July 25

Compressed Natural Gas Tax: 25th day of the following month

Export Tax: 20th day of the following month

Oil and Tire Fees

Tax Rates

Oil: Motor oil - $0.02 per quart

Tire: $1.35 tax on each qualified new tire

Filing Frequency

Oil: Quarterly

Tire: Quarterly

Due Date

Oil: 25th day of the following month

Tire: 25th day of the following month

Professional Privilege Tax

Tax Rates

$400

Filing Frequency

Annual

Due Date

June 1 - tax is paid in advance

Realty Transfer and Mortgage Tax

Tax Rates

Realty Transfer Tax: $0.37 per $100 of purchase price

Mortgage Tax: $0.115 per $100 of mortgage principal, first $2,000 exempt

Filing Frequency

Monthly

Due Date

15th day of the following month

Sales and Use Tax

Tax Rates

State tax - The sales tax rate on food is 5%. Effective July 1, 2017 the sales tax on food will be 4%. The general sales tax rate for most tangible personal property and taxable services 7%.  A few products and services such as aviation fuel or telecommunication services have different tax rates

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

Filing Frequency

Monthly, Quarterly or Annual

Due Dates

Sales Tax due dates depend on how frequently you file your return:

  • Monthly - 20th day of the month following the end of the reporting period
  • Quarterly - 20th of the month following the end of the quarter (January 20, April 20, July 20, October 20)
  • Annual - January 20
Severance Taxes

Tax Rates

Coal: $1 per ton severed

Crude Oil: 3% of sales price

Minerals: up to $0.15 per ton, rate set by county legislative body

Natural Gas: 3% of sales price

Filing Frequency

Coal: Monthly

Crude Oil: Monthly

Minerals: Monthly

Natural Gas: Monthly

Due Date

Coal: 15th day of the following month

Crude Oil: 20th day of the following month

Minerals: 15th day of the following month

 

Natural Gas: 20thd day of the second month

Television and Telecommunications Tax

Tax Rates

Cable and Wireless Cable: 

  State Tax Local Tax
$0.00 - $15 Exempt $0
$15.01 - $27.50 8.25% $0
$27.51  and up 7% use applicable local rates
DBS 8.25% $0

 

Interstate Telecommunications:

  State Tax Local Tax
Interstate sold to business 7.5% $0
Interstate sold to residence 7% 1.5%

 

Intrastate Telecommunications:

  State Tax Local Tax
Intrastate sold to business 7% 2.5%
Intrastate sold to residence 7% 2.5%

 

Filing Frequency

Monthly, Quarterly and Annual

Due Date

20th day of the following month

Tobacco Taxes

Tax Rates

Cigarette Tax: $.031 per cigarette ($0.62 per pack of 20)

Other tobacco products: 6.6% of the wholesale cost

Filing Frequency

Quarterly

Due Date

15th day of the following month

Unauthorized Substances Tax

Tax Rates

As prescribed by law

Filing Frequency

As identified by law enforcement

Due Date

As encountered